Are you aware of which states in the US have the lowest cost of living and no income tax?
It computed state-level yearly spending estimates using each state’s cost-of-living index and the national average expenditures in order to determine which states had the lowest income tax rates.
Using the same indices, we also provided average prices for accommodation, food, utilities, transportation, and healthcare.
In descending order, these are the least expensive states to live in without an income tax.
1. Alaska
The cost of living in Alaska is 125.2
Cost of needs per year: $48,679
Expenses per year: $91,355
You will still pay more than the national average for your primary costs even though income taxes are not applicable in Alaska. Utilities are one of the largest costs, coming in at around 58% more than the national average.
Additionally, groceries are a significant expenditure, costing around 24% more than the national average. The state’s location is a major factor in these increased prices.
2. Washington
The cost of living index for Washington is 116.0.
Cost of needs per year: $44,740
Expenses per year: $84,642
In Washington, groceries cost around 10% more than the national average. Utility expenses are, nonetheless, almost 8% less.
3. The Granite State
Index of cost of living: 114.1
Cost of needs per year: $83,255
Cost per year: $44,740
New Hampshire’s grocery prices are only 2% more than the US average. But of all the major living expenses you will incur, utilities will be the most expensive. They exceed the national average by 31%.
4. Nevada
Nevada’s cost of living index stands at 101.
Cost of needs per year: $39,430
Spending for a year: $73,697
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Nevada’s cost of living index is just 1% higher than the US average. Healthcare costs are almost 8% cheaper than the national average, although utilities are just 1% higher.
5. The Sunshine State
Index of cost of living: 100.7
Cost of needs per year: $38,072
Spending for a year: $73,478
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Florida’s grocery prices are around 0.5% less than the US average. Healthcare, transportation, and utilities are all one to four percentage points below the national average.
6. Texas
Texas’s index of cost of living is 92.7.
Cost of needs per year: $34,121
Expense per year: $67,640
Texas has a cost of living that is largely lower than the national average. Housing is down roughly 13% and groceries are down about 4%. The only expense that is more than the national average is 4% greater for healthcare.
7. Dakota
Index of cost of living: 92.4
Cost of needs per year: $34,648
Expenses per year: $67,421
Every cost of living expense you incur while relocating to South Dakota will be lower than the national average. For instance, food are 3% less expensive and utilities are around 12% less expensive than the national average.
8. Wyoming
The cost of living index for Wyoming: 92.4
Cost of needs per year: $33,845
Expenses per year: $67,422
In Wyoming, three of the five cost of living categories—housing, utilities, and transportation—are less than the national average.
Nevertheless, the cost of food is just 2% more than the national average, and the cost of healthcare is only 0.1 percent more.
9. Tennessee
Index of cost of living: 90.3
Cost of needs per year: $33,060
Expenses per year: $65,889
According to the ranking, Tennessee is the least expensive state without an income tax. Every cost of living expense is less than the average for the country.
Housing is around 18% lower than the national average, while groceries are just 2% lower. In addition, there are reductions of 7% in utilities, 11% in transportation, and 12% in healthcare.