The 10 States With the Lowest Tax Burden (2026 Ranking)
Alaska residents pay less than 5% of their income in state and local taxes — here's WalletHub's full 2026 breakdown of the 10 states with the lowest overall tax burden.
The catch most people miss: No income tax doesn't automatically mean low overall taxes. Washington has zero income tax but ranks 25th overall (8.47%) — while Delaware has real income tax and still lands in the bottom 10 thanks to low property and sales tax burdens.
Lowest Tax Burden, Ranked #1 to #10
Alaska — 4.92% Total Burden
No income tax, plus the lowest combined property and sales/excise burden of any state. Residents keep more of their paycheck than anywhere else in the country.
Property 3.32%Income 0.00%Sales/Excise 1.60%New Hampshire — 5.38% Total Burden
No general sales tax and the lowest sales/excise burden in the nation. Property tax runs higher than most low-burden states, but it's not enough to change the overall ranking.
Property 4.33%Income 0.13%Sales/Excise 0.91%Tennessee — 6.21% Total Burden
No state income tax and one of the lowest property tax burdens in the country. Sales/excise tax runs a bit higher, but overall it's still one of the lightest tax states.
Property 1.60%Income 0.00%Sales/Excise 4.61%Florida — 6.27% Total Burden
No income tax and moderate property and sales taxes combine for a consistently low overall burden — one reason it's also a perennial top retirement destination.
Property 2.52%Income 0.00%Sales/Excise 3.74%Delaware — 6.28% Total Burden
Delaware does charge income tax, but its property and sales/excise burdens are among the lowest in the country, keeping the overall total in the bottom 5.
Property 1.67%Income 3.62%Sales/Excise 0.98%South Dakota — 6.38% Total Burden
No income tax and a balanced, moderate property and sales tax load make South Dakota one of the more consistently affordable states in the country.
Property 2.32%Income 0.00%Sales/Excise 4.06%Wyoming — 6.70% Total Burden
No income tax, but a somewhat higher property tax burden than the rest of the bottom 10 keeps it from climbing higher on this list.
Property 3.42%Income 0.00%Sales/Excise 3.28%North Dakota — 7.02% Total Burden
Low income tax and a moderate property tax burden combine for one of the more balanced tax profiles among low-burden states.
Property 2.23%Income 0.88%Sales/Excise 3.91%Idaho — 7.04% Total Burden
Low property tax burden and moderate income and sales taxes keep Idaho's overall load well below the national average.
Property 1.92%Income 1.84%Sales/Excise 3.29%Oklahoma — 7.05% Total Burden
Rounds out the bottom 10 with low property tax and modest income and sales tax burdens across the board.
Property 1.78%Income 1.78%Sales/Excise 3.50%Frequently Asked Questions
Bottom Line: The states with the lightest overall tax burden usually combine at least two of the three tax types being low — not just one. Before assuming a "no income tax" state is automatically cheaper, check its property and sales tax burden too.
StatewiseFinance's Take: If you're a public employee planning around a pension, don't stop at the income tax line. Delaware and North Dakota both tax income but still land in the bottom 10 overall — while a "no income tax" state like Wyoming has a higher property tax burden than most of this list. For teachers, firefighters, and other pension-based retirees, the property tax line often matters more long-term than the income tax rate everyone focuses on.
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