States With No Income Tax Ranked By Homeowner Costs
See which of the nine zero-tax states offer real cost savings on property taxes, insurance, and utilities.
Living cheaply is the dream, but in 2026, high housing costs are often the reality.
Even after securing a home, many homeowners face recurring ownership expenses — like property taxes, utility bills, and sudden home insurance spikes — that come as a costly surprise.
Some relocate to a state without an income tax in search of financial relief. However, to offset the lack of a personal income tax, several states have steep sales taxes or heavy property tax bills. Others rely on natural resources, energy production, or tourism taxes to keep the burden off resident homeowners.
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Below, we rank all nine states with no personal income tax by their homeowner cost score, ordered from most costly to least costly. Here's the result.
States that don't tax income ranked by home costs
To rank each state, Kiplinger combined three key homeownership expenses into a single weighted homeowner cost score:
- Property taxes (50% of the score): Using PropertyShark data (citing 5-year U.S. Census Bureau estimates), Kiplinger examined the median property tax bill. Because property taxes can be a homeowner's largest recurring bill (besides a mortgage), this metric makes up half of the state's total score.
- Utility bills (30% of the score): Using Move.org data, Kiplinger aggregated average annual costs for electricity, natural gas, water/sewer, and internet/TV. This accounts for nearly a third of the score.
- Home insurance costs (20% of the score): Using LendingTree data (sourced from Quadrant Information Services), Kiplinger analyzed average annual premiums for a standard policy with a $1,000 deductible.
To account for recent market conditions, scores also reflect present-day market adjustments, including coastal insurance spikes, heavy summer cooling demand, and remote freight/heating overhead.
How to read each score: A weighted homeowner cost score of 100 represents the U.S. weighted national average baseline for recurring homeowner overhead. A score above 100 indicates the state's combined homeowner expenses exceed the weighted national average (e.g., a score of 150 means costs are 50% higher). Meanwhile, a score below 100 means the state's combined homeowner expenses are lower than the weighted national average (e.g., a score of 95 means costs are 5% lower).
9. New Hampshire: Low home insurance, high property taxes
Homeowner cost score: 155
Ranking as the most costly state on our list, New Hampshire incurs a weighted score of 155, driven primarily by exceptionally high property taxes. This is largely due to the Granite State's high effective property tax rate of 1.5% — well above the national average of around .90%, according to the Tax Foundation.
High costs: Lacking a state sales tax and state income tax, New Hampshire relies heavily on local property taxes to fund public services. Utility bills are also elevated (around 21% above the national average).
On the bright side: New Hampshire homeowners enjoy relatively low insurance costs due to minimal coastline exposure and stable climate risks. Plus, the state levies no state estate or inheritance tax, meaning family real estate can be passed down to heirs without a state "death tax."
8. Texas: High insurance costs for a no-income tax state
Homeowner cost score: 150
Texas ranks near the bottom for homeowner affordability due to high property tax rates and surging homeowners insurance. Texas homeowners pay high monthly housing costs that rank among the highest in the nation relative to local incomes, according to 2026 reports by Rice University's Kinder Institute for Urban Research.
High costs: Like New Hampshire, Texas relies on high effective property tax rates to fund local government (since there is no personal income tax). Simultaneously, severe weather risks drive up average annual homeowners insurance premiums substantially, along with high summer air-conditioning electric bills.
On the bright side: Residents age 65 and older can ease their tax burden through homestead exemptions that decrease assessed property values for school districts. Texas also charges no estate tax, preserving wealth for heirs and keeping select areas relatively affordable.
Related: 10 Cheapest Places to Live in Texas
7. Florida: Insurance crisis drives homeowner costs
Homeowner cost score: 103 to 155
Florida's score spans a wide range because homeowners insurance premiums vary widely by location. In inland counties, costs remain closer to national averages; in coastal zones, persistently high insurance rates push Florida toward the top of the overall unaffordability rankings, according to data from the Insurance Information Institute and LendingTree.
Related: 10 Cheapest Places to Live in Florida
High costs: While Florida's median property tax bill is moderate, homeowners insurance premiums have surged in recent years — often reaching $5,000 to $10,000 annually — due to increased hurricane risks and reinsurance spikes. Year-round air conditioning demands also drive up utility bills.
On the bright side: Florida offers a standard $50,000 homestead property tax exemption for primary residences (with expansions being considered on upcoming ballots). Florida also levies no state estate tax, which can potentially save heirs money.
See also: Florida Voters to Decide on $250,000 Property Tax Exemption
6. Alaska: High utility bills and low property tax burden
Homeowner cost score: 84 to 151
Alaska presents a unique financial landscape: while its vast rural boroughs are entirely free of property taxes, this benefit is confined to remote areas. For most residents, living in the state means balancing significant urban property taxes against extreme geography that triggers high utility and shipping costs, as highlighted in Move.org's annual utility report.
High costs: Alaska's annual utility bills are among the highest in the nation — with electric and heating bills running roughly 50% above the U.S. average due to harsh winters and remote fuel delivery.
On the bright side: Alaska homeowners enjoy low base insurance rates thanks to zero hurricane risk, and substantial state oil revenues eliminate state income and state-level sales taxes. Plus, Alaska pays eligible residents an annual Permanent Fund Dividend (PFD) check, offers a $150,000 homestead exemption for homeowners 65 and older, and charges no state estate tax.
5. Washington: Moderate utility bills, higher property tax
Homeowner cost score: 133
Washington lands in the middle tier of non-income-tax states. Although the Evergreen State levies no personal income tax on standard wages, high home prices drive up annual property tax bills, according to U.S. Census Bureau estimates.
High costs: Property tax bills exceed the national average because local municipalities rely considerably on property assessments for funding. Total utility costs are higher than average, and Washington levies a state tax on certain high-value capital gains in addition to a state estate tax capped at 20% (as well as a 9.9% Washington income tax starting 2028 for earners with more than $1 million).
On the bright side: Washington state homeowners insurance premiums remain 35% below the national average, per LendingTree data, even though some local premiums have climbed in recent years. Also, homeowners continue to benefit from lower electricity rates than most of the country, thanks to relatively cheap hydroelectric power.
Related: 10 Cheapest Places to Live in Washington
4. South Dakota: Near national averages for homeowner costs
Homeowner cost score: 102
South Dakota aligns closely with the weighted national baseline for recurring home bills, scoring about 2% above the U.S. average according to data from LendingTree and PropertyShark.
High costs: Severe Midwest weather, including frequent hail and tornado risks, drives home insurance premiums higher than the national average. However, despite the state's rural nature, everyday costs like groceries generally remain at or below the U.S. average due to a strong local agricultural economy.
On the bright side: Local property tax bills hover near or slightly below national midpoints, partially offset by state sales tax revenues. Renewable wind power and hydroelectric generation help keep utility costs manageable. South Dakota also offers a senior property tax assessment freeze for qualifying households and levies no state death tax.
3. Nevada: Relatively low taxes with seasonal utility shocks
Homeowner cost score: 100
Nevada can be tax-friendly for homeowners, but its final cost score depends greatly on the season.
High costs: Nevada summer heatwaves trigger utility bill surges that push utilities above average, while mild winters may help keep costs low. For this reason, peak summer bills can surpass the national average, even though recent statewide averages have dropped significantly below it, per Move.org and LendingTree.
On the bright side: Nevada limits annual tax growth through state-mandated property tax caps and a low assessment ratio. Additionally, weighty tourism tax revenue from millions of out-of-state visitors helps fund public infrastructure, keeping residential property taxes and insurance rates down. Nevada also has no state estate or inheritance tax, making it attractive for passing assets to heirs.
2. Wyoming: Below-average homeownership costs
Homeowner cost score: 96
Wyoming is the second-most affordable state without an income tax for homeowners, boasting property tax burdens up to 40% below the national average according to Tax Foundation property tax maps.
High costs: Rising energy prices have increased utility bills in Wyoming. Groceries and other essential goods can be more expensive in remote towns.
On the bright side: Like Alaska, Wyoming funds much of its state budget through natural resource extraction (coal, oil, and gas) rather than residential property taxes. Low base property taxes and reasonable insurance keep total carrying costs well below national midpoints. Wyoming charges no estate or inheritance taxes, which can preserve real estate value for future generations.
1. Tennessee: Lowest overall homeownership costs
Homeowner cost score: 95
Tennessee claims the #1 spot as the most affordable state for homeowners among those with no income tax. A combination of low property tax assessments and stable carrying costs gives the Volunteer State the lowest overall score, according to PropertyShark and Census data.
High costs: Home insurance rates have risen sharply in recent years, making Tennessee the 7th most expensive state for homeowners insurance, according to LendingTree. Tennessee also has one of the highest sales tax rates in the U.S..
On the bright side: Tennessee boasts some of the lowest average property tax rates in the nation. Plus, the overall cost of fixed housing overhead keeps recurring homeowner bills highly competitive compared to most other non-income-tax states. The state also has no estate tax and offers property tax relief programs for low-income seniors aged 65 and older — making some places in Tennessee cheap to live.
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