Updated June 2026Reviewed for Tax Year 2026

Lowest Tax States 2026

All 50 states + D.C. ranked by composite tax burden (income + property + sales + capital gains) for 2026. Sortable table, Top 10 chart, methodology, and downloadable CSV.

Top 10 Lowest-Tax States

Composite burden share (income + property + sales) — lower is better.

Top 10 Lowest Composite Tax Burden (2026)
1. Wyoming2.85%2. Alaska2.92%3. Nevada3.57%4. New Hampshire3.86%5. Florida3.88%6. Tennessee4.29%7. South Dakota4.41%8. Washington4.77%9. Texas6.08%10. North Dakota6.11%
Composite burden share

Full Interactive Ranking

Click any column header to sort. Click a state name to open its full tax guide.

1WyomingWY0.00%0.61%5.44%0.00%68/1002.85%
2AlaskaAK0.00%1.19%1.80%0.00%66/1002.92%
3NevadaNV0.00%0.55%8.24%0.00%66/1003.57%
4New HampshireNH0.00%1.93%0.00%0.00%61/1003.86%
5FloridaFL0.00%0.89%7.00%0.00%64/1003.88%
6TennesseeTN0.00%0.71%9.56%0.00%63/1004.29%
7South DakotaSD0.00%1.24%6.44%0.00%61/1004.41%
8WashingtonWA0.00%0.98%9.38%7.00%61/1004.77%
9TexasTX0.00%1.80%8.25%0.00%54/1006.08%
10North DakotaND2.04%0.98%7.04%2.04%48/1006.11%
11ArizonaAZ2.50%0.62%8.40%2.50%50/1006.26%
12IndianaIN3.05%0.84%7.00%3.05%20/1006.83%
13MontanaMT5.90%0.74%0.00%4.10%42/1007.38%
14KentuckyKY4.00%0.83%6.00%4.00%38/1007.46%
15DelawareDE6.60%0.61%0.00%6.60%42/1007.82%
16ColoradoCO4.40%0.55%7.80%4.40%38/1007.84%
17PennsylvaniaPA3.07%1.49%6.34%3.07%54/1007.95%
18North CarolinaNC4.50%0.73%6.99%4.50%19/1008.06%
19AlabamaAL4.50%0.40%9.25%5.00%48/1008.08%
20UtahUT4.65%0.63%7.47%4.65%37/1008.15%
21LouisianaLA4.25%0.55%9.55%4.25%47/1008.21%
22West VirginiaWV5.12%0.58%6.57%5.12%48/1008.25%
23MississippiMS4.70%0.79%7.07%4.70%58/1008.40%
24ArkansasAR4.40%0.64%9.40%4.40%36/1008.50%
25New MexicoNM4.90%0.67%7.63%4.90%36/1008.53%
26OhioOH3.50%1.52%7.25%3.50%40/1008.71%
27MichiganMI4.25%1.38%6.00%4.25%32/1008.81%
28IdahoID5.80%0.67%6.20%5.80%46/1009.00%
29VirginiaVA5.75%0.81%5.77%5.75%46/1009.10%
30MassachusettsMA5.00%1.14%6.25%5.00%43/1009.16%
31OklahomaOK4.75%0.89%8.99%4.75%33/1009.23%
32MissouriMO4.80%0.97%8.39%4.80%33/1009.26%
33GeorgiaGA5.39%0.92%7.40%5.39%33/1009.45%
34IowaIA4.38%1.57%6.94%4.38%39/1009.60%
35MarylandMD5.75%1.06%6.00%5.75%33/1009.67%
36District of ColumbiaDC6.75%0.56%6.00%6.75%36/1009.67%
37South CarolinaSC6.40%0.57%7.50%6.40%45/1009.79%
38HawaiiHI8.20%0.31%4.50%7.25%48/10010.17%
39WisconsinWI5.30%1.68%5.44%5.30%28/10010.29%
40OregonOR8.75%0.93%0.00%9.90%46/10010.61%
41KansasKS5.70%1.41%8.70%5.70%37/10011.13%
42Rhode IslandRI5.99%1.53%7.00%5.99%27/10011.15%
43NebraskaNE5.84%1.63%6.96%5.84%36/10011.19%
44MaineME7.15%1.36%5.50%7.15%28/10011.52%
45IllinoisIL4.95%2.27%8.88%4.95%1/10012.15%
46ConnecticutCT6.00%2.14%6.35%6.90%21/10012.19%
47New YorkNY6.85%1.40%8.53%6.85%25/10012.21%
48VermontVT6.60%1.90%6.35%6.60%23/10012.31%
49MinnesotaMN7.85%1.11%8.05%9.85%9/10012.48%
50New JerseyNJ6.37%2.46%6.63%6.37%17/10013.28%
51CaliforniaCA9.30%0.75%8.82%9.30%38/10013.45%

Methodology

All TaxEase rankings use the same per-state data lake refreshed for tax year 2026.

  • Income tax — average effective rate paid by middle-quintile households, cross-checked against Tax Foundation State Individual Income Tax Rates.
  • Property tax — property tax paid divided by median market home value (Census ACS 5-year + state DOR aggregates).
  • Sales tax — state statutory rate + population-weighted local average (Tax Foundation 2025 mid-year).
  • Capital gains — state long-term capital gains rate (often the same as ordinary income).
  • Retirement-friendliness score (0–100) 50 + retirement_bonus − property×1000 − sales×100 − income×150, clamped 0–100.
  • Overall burden income + property×2 + sales×0.30, assuming home value ≈ 2× income and 30% of income spent on taxable goods.

On this page, lower composite-burden values rank higher.

Read full research methodology →

Cite This Research

Journalists, bloggers, and researchers — please credit TaxEase.money with a link to this page.

Plain text
Source: TaxEase.money 2026 State Tax Research — "Lowest Tax States 2026 — Ranked by Total Tax Burden" (https://taxease.money/lowest-tax-states)
APA
TaxEase Research Team. (2026). Lowest Tax States 2026 — Ranked by Total Tax Burden. TaxEase.money. https://taxease.money/lowest-tax-states
MLA
"TaxEase Research Team." Lowest Tax States 2026 — Ranked by Total Tax Burden, TaxEase.money, 2026, https://taxease.money/lowest-tax-states.

Press inquiries: research@taxease.money

Data Sources

Every figure is sourced from an official tax authority or non-partisan policy institute.

Frequently Asked Questions

Which state has the absolute lowest taxes?
Wyoming, Alaska, and South Dakota consistently lead on composite burden — no income tax plus modest property and sales taxes.
How is 'lowest tax' calculated?
We weight effective state income tax, property tax (on a typical home value 2× household income), and average combined sales tax on a 30% taxable-spend share. See Methodology.
Does cost of living change the ranking?
Yes — Hawaii is low on income tax burden as a share of income but expensive overall. We track tax incidence, not the cost of living.
Can I republish this ranking?
Yes, with attribution to TaxEase.money and a link back to this page. Citation formats are provided above.

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