US State Tax Comparison Table: Income, Sales, and Property Tax

US tax rates vary dramatically from state to state — the difference between the highest and lowest states can be worth tens of thousands of dollars a year for a high earner. But "low tax" isn't one number: a state with no income tax may have high sales or property tax. This guide compares all three major taxes so you can choose based on *your* situation, whether you're relocating, retiring, or just shopping smarter.

The Three Taxes That Matter

1. Income tax — biggest lever for high earners and remote workers.

2. Sales tax — hits everyone; matters most for heavy spenders (and easy to avoid online).

3. Property tax — matters for homeowners; often the hidden cost in "no income tax" states.

9 States With No Income Tax

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire (which taxes neither wages nor, as of 2025, interest and dividends).

These states make up the revenue elsewhere — usually through higher sales or property tax. Texas, for example, has no income tax but property tax around 1.6–1.7%.

Highest Income Tax States (top marginal rate)

| Rank | State | Top rate |

|---|---|---|

| 1 | California | 13.3% |

| 2 | Hawaii | 11% |

| 3 | New York | 10.9% |

| 4 | New Jersey | 10.75% |

| 5 | Oregon | 9.9% |

Highest Combined Sales Tax States

| State | Combined avg |

|---|---|

| Louisiana | ~9.5% |

| Tennessee | ~9.5% |

| Arkansas | ~9.4% |

| Washington | ~9.4% |

| Alabama | ~9.3% |

Note Delaware, Montana, New Hampshire, and Oregon have 0% sales tax — the reason a Delaware billing address is so valuable for online shopping.

The "Total Tax Burden" View

The smartest comparison isn't any single tax — it's total burden as a share of income:

• Lowest overall burden: Alaska, Wyoming, Tennessee, Florida, and Delaware consistently rank near the bottom.
• Highest overall burden: New York, Hawaii, and California typically top the list.

Key Takeaways by Situation

• For online shopping: your location doesn't have to decide your sales-tax rate. Use a Delaware billing address for 0% sales tax on most orders — generate one with our tax-free address tool.
• For high earners: prioritize the nine no-income-tax states; the income-tax saving usually dwarfs higher sales/property tax.
• For retirees: Florida, Texas, and Tennessee combine no income tax with no tax on Social Security/pensions and no estate tax.
• For businesses: Delaware, Nevada, and Wyoming lead for incorporation and business-friendly rules.
• For homeowners: weigh property tax carefully — a no-income-tax state with 1.7% property tax may cost more than a low-income-tax state with 0.6% property tax.

Worked Comparison

A single filer earning $200,000:

• California: ~$13,000+ state income tax.
• Texas / Florida / Tennessee: $0 state income tax.
• Even after accounting for Texas's higher property tax, a high-earning renter or modest homeowner comes out well ahead.

Summary

Compare states across income, sales, and property tax together — not one in isolation. For online purchases, a Delaware billing address gives you 0% sales tax regardless of where you live. For relocation, the nine no-income-tax states offer the biggest wins for high earners and retirees, provided you factor in property tax.