Wyoming – Almost The Lowest Taxed State

Over the past few years, Wyoming residents have been concerned about rising property tax rates. This had little to do with local government raising taxes and more to do with new residents paying far to much for a home in Wyoming, thus raising their neighbors' property values.

Wyoming is working on that problem. In the meantime, the Cowboy State remains one of the lowest-taxed states in the nation.

Wyoming's cost of living is one of the lowest, too. Unless you live in the western side of the state.

Alaska, Tennessee, New Hampshire, Wyoming, and Florida have the lowest overall tax burdens in the USA, generally due to having no state income tax.

But sometimes there is a tradeoff. While they lack income tax, these states often offset revenue through higher property or sales taxes. Alaska has the lowest total tax burden (roughly 5%), while Tennessee and Florida provide low-tax environments for residents.

Lowest Tax States by Total Burden (2026):

Alaska (approx. 4.92%–5.36%): No state income tax and no state sales tax, though it has high local property taxes.

Tennessee (approx. 5.74%–6.33%): No state income tax, but relies on higher sales tax.

New Hampshire (approx. 5.38%–6.37%): No state income tax on wages (repealed as of 2025), but has high property taxes.

Wyoming (approx. 6.63%): No state income tax and low sales tax, but higher property taxes.

Florida (approx. 6.73%): No state income tax.

Delaware: Low property and sales taxes, though a moderate income tax exists.

South Dakota: No state income tax.

Montana: Low overall burden, no state sales tax.

Missouri: Low tax burden.

Alabama: Low tax burden.

States with No State Income Tax (as of 2026):
Alaska
Florida
Nevada
South Dakota
New Hampshire (repealed in 2025)
Tennessee (repealed in 2021)
Texas
Washington (note: $1M+ income tax approved for 2028)
Wyoming.

States like Tennessee and Florida may have higher sales taxes to make up for the lack of income tax.

New Hampshire has the highest property taxes in the nation to offset having no income tax.

The total burden includes income, property, and sales taxes. A state with no income tax might still have a moderate overall tax burden.