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10 Low-Tax States People Are Still Moving to in Droves in 2025

Move to these states to keep Uncle Sam from taking money you would rather put in your bank account.

By Heather Bien

Edited by Chris Kissell

Updated Feb. 1, 2025

If you are hoping to move beyond living paycheck to paycheck in 2025, maybe it's time to consider moving to a low-tax state. If you make such a move, you won't be alone.

The Tax Foundation used the U.S. Census Bureau's most recent interstate migration estimates for moves between July 1, 2023, and June 30, 2024, and discovered that lower-tax states saw higher inbound migration during that period.

Ready to make the move? These 10 low-tax states were the most popular to move to in 2024.

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South Carolina

Net inbound domestic migration: 1.26%

State tax rates: 0% to 6.4%

In South Carolina, you get beautiful beaches, charming historic towns, and low taxes. Not only will you skip estate and inheritance taxes when you die, but you'll also enjoy other low tax rates while you are still around to enjoy them.

The effective property tax rate is 0.46% and the state sales tax is 6%. Additionally, the per-gallon gas tax rate of 28.75 cents is far lower than the national average of 51.3 cents per gallon.

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Idaho

Net inbound domestic migration: 0.83%

State tax rates: 5.8%

Idaho has a flat 5.8% individual income tax rate, which could work out positively or negatively depending on your income.

The state sales tax rate is 6%. Unlike other places where local taxes often drive that number up, the average combined state and local tax rate is only 6.03%.

If you're buying property, you won't need to worry about sky-high property taxes — the effective property tax rate is 0.47% on owner-occupied housing. Similar to other low-tax states, there's no estate or inheritance task.

Delaware

Net inbound domestic migration: 0.79%

State tax rates: 2.2% to 6.6%

Delaware is a favorite of people looking to shop til they drop — without paying taxes, of course.

Delaware is known for its lack of state sales tax. It also has a 0.48% effective property tax rate on owner-occupied housing, which is on the lower end among U.S. states.

The state's 23 cents per gallon gas tax rate will set you up for cheaper road trips, and there's no estate or inheritance tax.

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North Carolina

Net inbound domestic migration: 0.76%

State tax rates: 4.5%

North Carolina's flat 4.5% individual income tax rate works out well for those who have higher incomes but want to pay a lower tax rate. Combine that with a 4.75% state sales tax rate, and the tax burden in the Tar Heel State looks pretty good.

A 0.63% effective property tax rate is slightly higher than what you'll find in some of the other low-tax states on this list, but it's still a decent rate.

Tennessee

Net inbound domestic migration: 0.68%

State tax rates: 0%

There's no individual income tax in Tennessee, which automatically makes it one of the best tax situations you'll find in the country.

Pair that with a 0.48% effective property tax rate, and this is a great place to settle down and buy a home, particularly if you're still working.

If you have a long commute, the 27.4 cents per gallon gas tax rate makes the pain at the pump hurt a bit less. There's also no estate or inheritance tax.

Nevada

Net inbound domestic migration: 0.52%

State tax rates: 0%

Whatever happens in Vegas stays in Vegas. And whatever money you earn in Nevada stays in your wallet.

There's no individual income tax here, as well as no corporate income tax. The effective property tax rate is only 0.44%, so you can buy a house and live affordably. You'll also enjoy no estate or inheritance tax, and a per-gallon gas tax rate of only 23.81 cents.

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Alabama

Net inbound domestic migration: 0.51%

State tax rates: 2% to 5%

Alabama's graduated individual income tax rates of 2% to 5% are lower than what you'll find throughout much of the country. And, the state sales tax rate of 4% is great if you love to shop.

There's also no estate or inheritance tax in the Yellowhammer State.

Montana

Net inbound domestic migration: 0.48%

State tax rates: 4.7% to 5.9%

Montana's graduated state individual income tax starts a bit higher than what you will find in some other states. However, if you're on the higher end of earners, the top rate of 5.9% works out in your favor.

There's also no state sales tax here, so you can stock up on all the ski gear you need for the winter season. Like many other low-tax states, there's no estate or inheritance tax.

Arizona

Net inbound domestic migration: 0.47%

State tax rates: 2.5%

If you're lucky enough to keep earning more every year, don't worry about higher taxes: In Arizona, the flat 2.5% individual income tax rate means the sky's the limit on your earning potential.

The effective property tax rate of 0.45% creates a market conducive to investing in property, while the 19 cents per gallon gas tax rate is among the lowest you'll find.

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Arkansas

Net inbound domestic migration: 0.44%

State tax rates: 2 to 4.4%

A graduated individual income tax of 2 to 4.4% makes Arkansas a great place for those seeking lower taxes. There's no estate or inheritance tax and a low effective property tax rate of 0.53% is ideal for those looking to buy a home.

Ready to hit the road? A 25 cents per gallon gas tax rate makes it affordable to fill it up at the pump.

Bottom line

To keep more cash in your wallet, look at the tax rates that will impact you most and move to a state where you can take advantage of lower taxes.

For some people, the lack of an income tax is the most powerful deciding factor. Others may look for no estate tax or no sales tax.

Everyone's tax situation is different, so it's important to find the best scenario for your financial future.

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Author Details

Heather Bien

Heather Bien is a writer covering personal finance and budgeting and how those relate to life, travel, entertaining, and more. With bylines that include The Spruce, Apartment Therapy, and mindbodygreen, she's covered everything from tax tips for freelancers to budgeting hacks to how to get the highest ROI out of your home renovations.