Are You Living in One of the Fastest-Growing Low-Tax States?
People move out for many reasons, personal and professional, but the Tax Foundation puts forward three important factor rules for the latest report from the most popular destination states in the United States: lower cost of living, lower taxes, and a lot of sunshine.
Of the top 10 destinations reported, most, but not all, have relatively low state taxes. Most housing costs are lower than those in East and West Coast states. Seven out of ten states are firmly located in the Sun Belt.
The Tax Foundation report released in January 2025 is based on U.S. Census Bureau data collected from July 1, 2023 to June 30, 2024.
Key Points
- The highest destination is South Carolina’s state sales tax of 6%, with the highest state income tax rate of 6.2%, but the house prices are relatively small.
- Other states on the top destination list include Idaho, Delaware, North Carolina, Tennessee, Nevada, Alabama, Montana, Arizona, and Arkansas.
- Many states with the highest destinations are located in the sun belt, with both sunshine and economic benefits.
- Alabama has the lowest housing costs, with an average home price of $228,101 in 2024.
#1 South Carolina
South Carolina’s population grew by 1.26% from 2023 to 2024, according to U.S. census data. United Van Line lists the 3rd state in its 48Th The annual National Animal Research was released in January 2025.
The Tax Foundation ranks South Carolina’s overall tax burden at No. 33 of its 50 points in its 2025 state tax competition index, with #1 being the best state and #50 being the worst. South Carolina states Business Tax The interest rate is 6.00%. Its highest marginal personal income tax rate is 6.2%.
Real estate investor Norada said the average house price in South Carolina was $297,794 in 2024, while the average house price in Florida was $773,362 and the average price in Florida was $394,728, according to real estate investor Norada.
#2 Idaho
Idaho has a growth rate of 0.83%, ranking second on the Tax Foundation’s most touching list. However, Realtor.com lists it as #5.
Median Listing price As of January 2025, homes here are $579,900, with an average monthly home payment of $3,040.
You have to save some taxes to live comfortably here. The Tax Foundation places the overall tax burden in Idaho on a fairly competitive #11.
Its state’s sales tax rate matches South Carolina’s 6.00%, but its highest marginal personal income tax rate is slightly below 5.695%.
Real estate investor Norada said the average house price in Idaho is $454,300, while the average house price in Florida is $773,362 and the average house price in Florida is $394,728.
#3 Delaware
Delaware’s growth rate is 0.79% from 2023 to 2024, according to a report from the Tax Foundation. United Van Lines ranked second on its list, noting that more than 50% of new immigrants are over 65 years old, while 12% are from New York.
Top Individuals in Delaware Income Tax Revenues above $60,000 are 6.60%, although income below $60,000 is 5.55%. There is no state or local sales tax in the state.
Real estate investor Norada said the average house price in Delaware is $388,163 in 2024, while the average house price in Florida is $773,362 and the average price in Florida is $394,728, according to real estate investor Norada.
#4 North Carolina
The neighbors in northern South Carolina rank fourth on the tax foundation migration list at 0.76%.
Realtor.com sets the median home listing price in North Carolina at $428,750, with an average monthly payment of $2,248. United Van Line ranks states as 5th.
North Carolina is very kind to residents when it comes to taxes. This is a unified taxation state, so it applies to everyone regardless of income. The interest rate for the 2024 tax year is 4.50%, which is the reduction rate of the previous year. The state has a sales tax rate of 4.75%, but County fee rate Can be added.
Real estate investor Norada said the average house price in North Carolina is $330,819, while the average house price in North Carolina is $773,362 in 2024, Florida is $773,362 and Florida is $394,728.
#5Tennessee
According to the Tax Foundation report, Tennessee has an inbound rate of 0.68%.
The state has no income tax. Its state and local sales tax rates are quite significant, at 9.55%. The state is 7.0%.
Nevertheless, Tennessee ranked 8th in the Tax Foundation in 2025 due to lack of income tax.
Real estate investor Norada said the average house price in Tennessee is $321,434 in 2024, while according to real estate investor Norada, the average house price in Tennessee is $773,362 in 2024 and the average house price in Florida is $773,362.
#6 Nevada
Nevada ranks sixth in the Tax Foundation report. This is another state without income tax. This is the 17th place in the 2025 state tax competitiveness index.
The state-level business tax rate is 6.85%, but local jurisdictions can increase it themselves.
Real estate investor Norada said the average house price in Nevada was $443,203 in 2024, compared with $773,362 in Florida and $394,728 in Florida, according to real estate investor Norada.
#7 Alabama
Alabama ranks No. 7 on the Tax Foundation’s Inner Immigration List. Ranked sixth in the United Trucks National Movers Study.
Alabama’s total sales tax rate is 9.29%. State-level sales tax accounts for only 4.0% of the total, so you can save some money where you buy.
Alabama is known for its lows property tax Rates. The highest income tax rate is that a single filer has a taxable income of more than $3,000, while a married taxpayer has a income of $6,000.
Real estate investor Norada said the average house price in Alabama is $228,101 in 2024, while the average house price in Florida is $773,362 and the average house price in Florida is $394,728.
#8 Montana
Montana ranks 8th in the Tax Foundation Census Data List.
They won’t go there for income tax breaks. Fidelity Investments shows that the state imposed some of the highest income tax rates on personal income as of December 2024.
Still, Montana ranked 5th in the 2025 state tax competitiveness index. As of 2025, the state’s highest personal income tax rate was 5.9%. However, Montana does not have a general sales tax, so it is generally more tax-friendly.
Real estate investor Norada said the average house price in Montana is $468,194, compared to $773,362 in Florida and $394,728 in Florida, according to real estate investor Norada.
#9 Arizona
Arizona ranks 9th in the Tax Foundation Census Data List. The state ranks 10th in the United Van Lines 2024 National Movers study.
Arizona offers a very friendly flat income tax rate of only 2.5% for the 2024 tax year. The state sales tax rate is 5.6%, and Arizona cities can also upgrade their sales tax.
Real estate investor Norada said the average house price in Arizona is $431,491 in 2024, while the average house price in Florida is $773,362 and the average price in Florida is $394,728, according to real estate investor Norada.
#10 Arkansas
Arkansas is ranked 10th on the tax foundation list.
Its state and local sales tax rate is 9.45%, with 6.5% of which are used in the state.
However, the state has lowered its highest personal income tax rate from 4.4% to 3.9%.
hint
Realtor.com says the median price of Arkansas homes is $285,000, with an average monthly payment of about $1,494.
Real estate investor Norada said the average house price in Arkansas is $209,250 in 2024, while the average house price in Florida is $773,362 and the average price in Florida is $394,728, according to real estate investor Norada.
Bottom line
The migration to these states reflects a preference for affordable life, lower taxes and a favorable climate. By understanding the state tax, you can better determine which location is best for your financial needs.