When taking a new job or buying a home in a new state, taxes are often a big consideration.
The top 10 best states for taxes are Wyoming, South Dakota, Alaska, Florida, Montana, New Hampshire, Texas, Tennessee, North Dakota and Indiana, according to an analysis by nonprofit Tax Foundation, which ranked the states based on income, property, sales, unemployment and corporate taxes.
On the other hand, the 10 worst states for taxes are New York, New Jersey, California, Connecticut, Maryland, Washington, Minnesota, Vermont, Hawaii and Massachusetts.
The ranking comes from Tax Foundation's State Tax Competitiveness Index, which crunched more than 150 metrics to determine the states with the most favorable taxes.
A closer look at the best and worst states for taxes in 2025
For instance, the top-ranked state Wyoming doesn't have an individual income tax, an average combined state and local sales tax of 5.44%, a 0.55% effective property tax and a 24 cents per gallon gas tax. The state also doesn't have an estate or inheritance tax.
South Dakota, the second-best state for taxes, also doesn't have an individual income tax, an average combined state and local sales tax of 6.11%, a 1.01% effective property tax and a 30 cents per gallon gas taxes. It doesn't have an estate or inheritance tax.
Texas, the most populous in the top 10 best states for taxes, doesn't have an individual income tax, an average combined state and local tax of 8.2%, a 1.47% effective property tax and a 20 cents per gallon gas tax. The state doesn't have an estate or inheritance tax.
New York, the worst state for taxes, has an individual income tax ranging from 4% to 10.9%, some local governments also collect income tax, an average combined state and local sales tax rate of 8.53%, a 1.54% effective property tax and a 25.68 cents per gallon gas tax. The state has an estate tax, starting at 3.06% and rising up to 16%.
New Jersey, the second-worst state for taxes, has an individual income tax ranging from 1.4% to 10.75%, an average combined state and local sales tax of 6.6%, a 2.08% effective property tax and a 42.4 cents per gallon gas. It charges an inheritance tax ranging from 11% to 16%.
California, the third-worst state for taxes and the most populous among the 10 worst states, has an individual income tax ranging from 1% to 13.3%, an average combined state and local stales tax of 8.85%, a 0.68% effective property tax and a 68.1 cents per gallon gas tax. The state doesn't have an inheritance or estate tax.
Below is a searchable table where taxpayers can see how their state ranks on taxes.
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