Best Places to Live & Work by Tax Burden
Discover which US states and countries offer the best tax advantage for your income level. Our calculator factors in federal taxes, state income taxes, FICA contributions, and cost of living to give you a complete picture of where your money goes furthest.
Find the Best US State for Your Income
Enter your gross annual income to see how total taxes (federal + state + FICA) vary across all 50 states.
Alaska
No TaxFlorida
No TaxNevada
No TaxNew Hampshire
No TaxSouth Dakota
No TaxTennessee
No TaxTexas
No TaxWashington
No TaxWyoming
No TaxNorth Dakota
Flat 1.9%Ohio
Top 3.5%+LocalArizona
Flat 2.5%Indiana
Flat 3.0%+LocalPennsylvania
Flat 3.1%+LocalIowa
Flat 3.8%Rhode Island
Top 6.0%Arkansas
Top 3.9%Louisiana
Top 4.3%Colorado
Flat 4.4%+LocalNorth Carolina
Flat 4.5%Kentucky
Flat 4.0%+LocalNew Mexico
Top 5.9%Missouri
Top 4.8%+LocalWest Virginia
Top 5.1%New Jersey
Top 10.8%Michigan
Flat 4.3%+LocalOklahoma
Top 4.8%Wisconsin
Top 7.6%Maryland
Top 5.8%+LocalNebraska
Top 5.6%Mississippi
Flat 4.7%Utah
Flat 4.7%Vermont
Top 8.8%South Carolina
Top 6.4%Montana
Top 5.9%Alabama
Top 5.0%+LocalGeorgia
Flat 5.5%Illinois
Flat 5.0%Idaho
Flat 5.8%Massachusetts
Flat 5.0%Kansas
Top 5.7%Connecticut
Top 7.0%New York
Top 10.9%+LocalVirginia
Top 5.8%Minnesota
Top 9.8%Delaware
Top 6.6%+LocalCalifornia
Top 13.3%Maine
Top 7.1%District of Columbia
Top 10.8%Hawaii
Top 11.0%Oregon
Top 9.9%+LocalImportant: These estimates use simplified tax models for comparison purposes. Actual taxes depend on filing status, itemized deductions, credits, local taxes, and other factors. Property tax, sales tax, and cost of living vary significantly within each state. Always consult a licensed tax professional before making relocation decisions.
How We Calculate This
Federal + State Tax
We apply official 2026 federal brackets plus each state's income tax system (none, flat rate, or progressive brackets) including standard deductions.
FICA Contributions
Social Security (6.2% up to $176,100) and Medicare (1.45% + 0.9% above $200k) are included in the total tax burden calculation.
Cost of Living
Our cost of living index (100 = national average) helps you understand purchasing power — a lower tax doesn't always mean more buying power.
Key Insights
No Income Tax States
Nine states charge no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But remember — they often recoup revenue through higher property taxes (Texas), sales taxes, or other mechanisms.
Washington also levies a 7% tax on capital gains over $270,000.
The Full Picture
A state with no income tax isn't always the cheapest overall. New Jersey has a 10.75% top rate but offers good schools and proximity to NYC. Texas has no income tax but property taxes average 1.68%. Consider the total tax burden plus quality of life.
Sort by "Cost of Living" above to see which states offer the best value.
Going International
European countries generally have higher income taxes but include universal healthcare and pension in their social contributions. Spain's Beckham Law offers a flat 24% rate for expats. Germany's social contributions are ~20.5% but cover comprehensive benefits.
Remote Work Era
Remote work has made tax optimization accessible to more people. States like Florida, Tennessee, and Texas are seeing massive inflows. Some states (West Virginia, Vermont) even offer relocation incentives for remote workers.