Best Cities in States With No Income Tax

Nine States, Very Different Cities

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington (wages only), and Wyoming charge no broad-based income tax on wages. That's a real financial difference. At a $85,000 salary, the gap between a 0% state and a 5% state is $4,250 per year. Over a decade, invested, that's a meaningful sum.

But "no income tax" doesn't automatically make a city worth moving to. Louisiana has no income tax at lower brackets and nobody's moving there for tax reasons. The question is which no-income-tax cities combine the tax benefit with a livable, economically active metro.

Here's the breakdown by state.

Texas

Texas has no state income tax. It offsets some of that with higher-than-average property taxes; the effective rate is 1.31% of home value, one of the higher rates in the country. Still, net of all taxes, Texas tends to win the comparison for most workers.

Dallas-Fort Worth: Rent $1,638 | Home $373,900 | Income $86,860 | Job growth 2.2% | Unemployment 3.8%

The biggest job market of any no-income-tax state city on this list. Finance, healthcare, logistics, technology. The home price-to-income ratio at 4.3x is reasonable. Property taxes at 1.31% on a $374K home run about $4,900/year, which does eat into the income tax savings. Net math still favors Texas for most households.

San Antonio: Rent $1,342 | Home $292,700 | Income $73,195 | Unemployment 3.7%

More affordable than Dallas. Military, healthcare, and tourism anchor the economy. The lower home prices mean property taxes, while the same 1.31% rate, cost less in absolute dollars. For a first-time buyer, San Antonio's $292K median home is much more accessible.

Austin: Rent $1,752 | Home $487,200 | Income $98,508 | Job growth 2.9% | Unemployment 3.5%

The tech hub of Texas. Higher home values and rent than Dallas or San Antonio, but income is also higher and job growth has been the strongest in the state. The $98,508 median income against $487,200 median home value is a 4.9x ratio, still reasonable compared to California.

Florida

Florida also has no income tax. Property taxes are 0.75% (lower than Texas) and sales tax runs 7.02%.

Tampa-St. Petersburg: Rent $1,729 | Home $372,100 | Income $72,743 | Job growth 2.4% | Unemployment 3.0%

Tampa has quietly become one of the better mid-size metros in the country. Financial services, healthcare, and tech have all grown here. The gulf coast location gives it a lifestyle edge that Fort Lauderdale or Miami can't match at comparable price points.

Orlando: Rent $1,799 | Home $383,100 | Income $77,378 | Job growth 2.6% | Unemployment 2.9%

Tourism is the obvious economy, but healthcare and tech have become major employers. Unemployment at 2.9% suggests a genuinely active labor market. The summer heat is legitimately oppressive, something to factor in.

Jacksonville: Rent $1,564 | Home $361,800 | Income $77,044 | Unemployment 3.1%

Jacksonville gets overlooked relative to Orlando and Tampa. The metro is large (over a million people), the housing is cheaper, and the job market has diversified into finance, logistics, and healthcare.

Nevada

Nevada has no income tax and sales tax that averages 8.24%, higher than most states but not extreme. Property taxes at 0.47% are among the lowest in the country.

Las Vegas-Henderson: Rent $1,654 | Home $437,900 | Income $75,065 | Job growth 3.4% | Unemployment 5.4%

Las Vegas has the highest job growth on this list at 3.4%. The unemployment at 5.4% is also higher than most, as the economy is still heavily tied to tourism and hospitality, which creates volatility. The city has made real progress diversifying into tech (Allegiant, Switch, Zappos), but it's not complete. If your job is remote or in a non-hospitality sector, Las Vegas makes good financial sense.

Tennessee

Tennessee has no income tax on wages (it previously taxed investment income; that ended in 2021). Sales tax is high at 9.55%, the highest combined rate in the country.

Nashville: Rent $1,566 | Home $437,200 | Income $84,685 | Unemployment 2.6%

Nashville's job market is genuinely strong. Healthcare is the anchor (HCA Healthcare, Vanderbilt Medical), with tech and music industry jobs supplementing. Home values have risen sharply and are now in Austin's range, which has blunted the affordability argument. Still, no income tax on an $84K median income saves about $4,200 compared to a 5% state.

Knoxville: Rent $1,170 | Home $320,700 | Income $69,872 | Unemployment 3.0%

More affordable than Nashville with lower home values and rent. University of Tennessee anchors the economy, with manufacturing and logistics providing blue-collar employment. If Nashville's prices are off-putting, Knoxville offers most of the Tennessee tax advantages at lower price points.

South Dakota

South Dakota has no income tax. Property taxes at 1.02% are moderate.

Sioux Falls: Rent $988 | Home $307,600 | Income $76,226 | Unemployment 1.7%

The lowest unemployment rate on this list. Sioux Falls has been consistently cited as one of the best places to live based on income-relative-to-cost ratios. The financial services sector (credit card processing headquarters here due to favorable banking laws) generates above-average wages for a mid-size metro.

The Trade-Offs

No income tax states often compensate with higher property or sales taxes. The net benefit depends on your income level and spending patterns:

• High income, high spending: Texas property taxes and Nevada/Tennessee sales taxes can offset income tax savings at higher brackets
• Remote worker or retiree with low spending: The income tax savings are largely pure benefit
• First-time buyer: Property tax rate matters more. South Dakota and Florida have lower effective rates than Texas

Running your actual numbers matters. MoveMap's tax data shows combined income, property, and sales tax estimates for every metro.

Explore more: Compare all no-income-tax cities → | See full tax data by state → | Find affordable cities →