Paying less taxes (legally). Isn't that the dream? A move just might make that possible.

You won't be able to save as much as Jeff Bezos, who is moving from Seattle to Miami, or Elon Musk, who is moving from California to Texas, but you could keep more of what you earn. Hey, billionaires are doing it so why can’t you? 

But is it all that it’s cracked up to be? If you want to move to one of the seven states with no income tax — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming — or New Hampshire and Washington, where certain types of income are exempt, there are certain factors to consider. 

Chief among them? Housing.

As in, will you end up paying more in housing expenses, defeating the purpose of paying less taxes in the first place? Or are homes way more affordable compared to where you are now and worth the hassle of lugging all your belongings across the country? 

Average Home Prices in No Tax States

One major factor in your housing costs is — you guessed it! — how much you’ll be paying for a house. Sure, you may be able to save several thousands of dollars or more in taxes, but you could be moving to a place with higher rent and purchase price, not to mention the ever ballooning of interest rates.  

While several no state tax places offer prices lower than the national average, a few don’t. 

According to data from the Federal Reserve, average homes sold in the U.S. were $492,300 as of Q3 of 2023. For renters, the average across the country is $1,340 a month (for a one or two bedroom apartment).

For the most part, areas in the South — Florida, Tennessee and Texas — have average home prices below this amount, at $388,454, $306,156 and $296,582, respectively. Nevada has home prices average a bit higher, at around $419,993. Renting though, tends to be a bit higher than average, with median rent prices hovering around at least $1,600.

That’s not to say you won’t save on buying or renting a house — especially so if you live in a higher cost of living area. But for those interested in buying, there are other costs to think about other than just paying the mortgage. 

Here’s a nifty little chart to see if these seven states are above or below the national average.

  • Alaska: ⬇️

  • Florida: ⬇️

  • Nevada: ⬆️

  • South Dakota: ⬇️

  • Tennessee: ⬇️

  • Texas: ⬇️

  • Wyoming: ⬇️

Breaking Down Other Homeowner Costs

Sure, lower than average home prices may help you save some serious cash, but looking at what you could pay in insurance and taxes for your property offers a more holistic view to see whether you really will save, especially if you want to move for that very reason.


On average, standard homeowners insurance in the U.S. cost $1,411 in 2021 according to the NAIC. More than likely, these prices will keep climbing due to factors like increased construction supplies and the usual rise of costs due to inflation. Prices can go higher or lower depending on where you live — areas prone to more extreme weather (think Florida in August) and crime can mean higher premiums. 

States like Florida pay some of the highest in the U.S., even twice the national average or higher, with many insurers leaving the state altogether. Texas, another state that is prone to extreme weather, has seen rates increase as high as 22% in 2023 alone

  • Alaska: ⬇️

  • Florida: ⬆️

  • Nevada:  ⬇️

  • South Dakota: ⬆️

  • Tennessee: ⬆️

  • Texas: ⬆️

  • Wyoming: ⬆️

Property Tax

States need income to pay for infrastructure like maintaining roads, funding public schools and paying state employees. In places with no state income taxes, it may collect funds needed to pay for infrastructure through property taxes. According to US Census Bureau data,  American homeowners pay a median of $2,690 each year in property taxes.

Texas homeowners can avoid state income taxes, but according to the Tax Foundation, pay some of the highest property taxes in the country. South Dakota and Florida also have higher than average property taxes. Nevada, however, has property taxes closer to the national average, which may result in higher taxes.

  • Alaska: ⬆️

  • Florida: ⬆️

  • Nevada: ⬇️

  • South Dakota: ⬆️

  • Tennessee: ⬇️

  • Texas: ⬆️

  • Wyoming: ⬇️

Homeowner Fees

Homeowners associations, or HOAs charge monthly or annual fees to help maintain common areas, provide amenities or to provide resources to maintain rules and regulations within the neighborhood. These fees may set you back a few hundred dollars a year or more. 

Some states have more HOAs than others. Florida, for example, has one of the highest concentrations of homeowners associations in the country. Aside from fees, you may have to pay more for upkeep so your home is within the rules stipulated by your HOA.

There are also CCDs or local government initiatives, designed to offer community amenities and infrastructure to newly developed areas. Real estate developers and other contractors help to build infrastructure, and the local community issues bonds to finance the costs. 

Homeowners pay for CCD fees and are generally tacked onto your property tax bill. Some income tax states like Florida have a large concentration of areas with CCDs. Homeowners can estimate what the costs could be and fees are assessed each year.

Should You Move?

Maybe! Moving to a no-tax state does have financial benefits if it means you'll save a lot in taxes (duh!). Or, it could be for lifestyle reasons like for a better standard of living or a job. Before going anywhere, you’ll want to get really granular and compare costs. It’s far better to know now if the tax savings are worth it, rather than being caught with paying more when you’re hundreds, even thousands of miles away.  

But we're not done! Join us next week for our second installment covering schools on "So You're Moving for Tax Reasons, Eh?"

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