Here’s a Look at the Most Tax-Friendly States in the US in 2024

Tax season is here, but residents in some states have taxes harder than others this time of year, according to a new analysis.

In some states, taxes represent about 3.3% of a median family's income. In others, however, taxes can represent 13% of a median family's income. MoneyGeek, a personal finance site, conducted an analysis that evaluates how "tax-friendly" each state is by calculating how much an average citizen spends on their taxes.

Specifically, the study looked at how much a hypothetical married couple with one dependent earning a gross income of $94,003 and with a home worth $320,900 would pay in taxes.

The Most Tax-Friendly States

At the top of MoneyGeek's list are states with no income taxes, including Alaska, Florida, Nevada, South Dakota, Tennessee, and Texas. That being said, it should be noted that some states have higher sales or property tax rates to make up for their lower income tax revenue. Tennessee, for instance, has the nation's highest combined state and local sales tax rates at 9.54%, according to the Tax Foundation.

Of all states, Nevada is the most "tax-friendly." Taxes in the state represent 4% of a median family's income.

Here's a list of the 10 most tax-friendly states (based on tax as a percentage of median income):

Nevada - 4.3%
North Dakota - 4.4%
Wyoming - 3.3%
Tennessee - 4.3%
Washington - 6.5%
Florida - 5.0%
Alaska - 4.3%
Arizona - 5.8%
Missouri - 7.0 %
South Dakota - 4.5%

The Least Tax-Friendly States

On the other hand, the analysis found that, in at least six states, residents are paying more than 10% of their income in taxes. These states include:

New Jersey - 13.5%
Illinois - 13.0%
New York - 13.7%
Connecticut - 11.7%
Oregon - 11.4%
Vermont - 10.1%

The study noted that nine of the 10 least-friendly states are either located in the Northeast or the Midwest region. Additionally, some states listed among the least tax-friendly have seen population declines in 2022. The states that have seen the highest population decrease in 2022 were Illinois, at -0.7%, and New York, at -0.8%.