Best Cities in States With No Income Tax (2026)
Data-driven city rankings · 2026
Overview
Nine US states charge zero state income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. For high earners, this can mean thousands of dollars per year in additional take-home pay. The cities below are the most affordable options within these tax-free states.
Keep in mind that tax-free states often compensate through higher sales taxes, property taxes, or reduced public services. The cost-of-living index captures some of these offsetting costs, making it a more holistic comparison than tax rates alone.
Ranking Criteria
Ranked by overall cost index among cities in the nine states with no state income tax on wages. Lower index indicates better affordability within the tax-free category.
Top Cities
| # | City | Index | Rent | Home Price | Income |
|---|---|---|---|---|---|
| 1 | Lubbock, TX | 83 | $950/mo | $175,000 | $49,834 |
| 2 | Brownsville, TX | 83 | $1,220/mo | $271,000 | $46,400 |
| 3 | Memphis, TN | 84 | $1,000/mo | $155,000 | $41,228 |
| 4 | Rapid City, SD | 84 | $1,210/mo | $275,000 | $46,800 |
| 5 | El Paso, TX | 85 | $1,000/mo | $185,000 | $47,568 |
| 6 | Irving, TX | 85 | $850/mo | $249,000 | $46,700 |
| 7 | Laredo, TX | 86 | $1,050/mo | $222,000 | $43,800 |
| 8 | Corpus Christi, TX | 87 | $1,100/mo | $195,000 | $53,238 |
| 9 | Clarksville, TN | 87 | $1,410/mo | $324,000 | $46,700 |
| 10 | Knoxville, TN | 88 | $1,100/mo | $240,000 | $42,898 |
| 11 | Beaumont, TX | 88 | $1,300/mo | $282,000 | $51,300 |
| 12 | Casper, WY | 88 | $1,240/mo | $319,000 | $47,200 |
| 13 | Chattanooga, TN | 89 | $1,200/mo | $255,000 | $46,054 |
| 14 | San Antonio, TX | 90 | $1,200/mo | $250,000 | $53,420 |
| 15 | Johnson City, TN | 90 | $1,400/mo | $285,000 | $53,500 |
| 16 | Waco, TX | 91 | $1,270/mo | $336,000 | $50,000 |
| 17 | Franklin, TN | 91 | $1,480/mo | $321,000 | $46,900 |
| 18 | Port St. Lucie, FL | 91 | $1,290/mo | $289,000 | $49,400 |
| 19 | Killeen, TX | 92 | $1,420/mo | $308,000 | $48,700 |
| 20 | Kissimmee, FL | 92 | $1,280/mo | $282,000 | $47,500 |
City-by-City Breakdown
1. Lubbock, TX (Index: 83)
Lubbock sits 17% below the national average with a cost index of 83. Median rent runs $950/mo per month, and the median home price is $175,000. With a median household income of $49,834, the purchasing power here stretches further than in most metros. Housing is indexed at 59, which is the most affordable category in Lubbock.
2. Brownsville, TX (Index: 83)
Brownsville sits 17% below the national average with a cost index of 83. Median rent runs $1,220/mo per month, and the median home price is $271,000. With a median household income of $46,400, the purchasing power here stretches further than in most metros. Housing is indexed at 95, which drives most of the overall cost in Brownsville.
3. Memphis, TN (Index: 84)
Memphis sits 16% below the national average with a cost index of 84. Median rent runs $1,000/mo per month, and the median home price is $155,000. With a median household income of $41,228, the purchasing power here stretches further than in most metros. Housing is indexed at 63, which is the most affordable category in Memphis.
4. Rapid City, SD (Index: 84)
Rapid City sits 16% below the national average with a cost index of 84. Median rent runs $1,210/mo per month, and the median home price is $275,000. With a median household income of $46,800, the purchasing power here stretches further than in most metros. Housing is indexed at 85, which drives most of the overall cost in Rapid City.
5. El Paso, TX (Index: 85)
El Paso sits 15% below the national average with a cost index of 85. Median rent runs $1,000/mo per month, and the median home price is $185,000. With a median household income of $47,568, the purchasing power here stretches further than in most metros. Housing is indexed at 69, which is the most affordable category in El Paso.
6. Irving, TX (Index: 85)
Irving sits 15% below the national average with a cost index of 85. Median rent runs $850/mo per month, and the median home price is $249,000. With a median household income of $46,700, the purchasing power here stretches further than in most metros. Housing is indexed at 79, which is the most affordable category in Irving.
7. Laredo, TX (Index: 86)
Laredo sits 14% below the national average with a cost index of 86. Median rent runs $1,050/mo per month, and the median home price is $222,000. With a median household income of $43,800, the purchasing power here stretches further than in most metros. Housing is indexed at 78, which is the most affordable category in Laredo.
8. Corpus Christi, TX (Index: 87)
Corpus Christi sits 13% below the national average with a cost index of 87. Median rent runs $1,100/mo per month, and the median home price is $195,000. With a median household income of $53,238, the purchasing power here stretches further than in most metros. Housing is indexed at 69, which is the most affordable category in Corpus Christi.
9. Clarksville, TN (Index: 87)
Clarksville sits 13% below the national average with a cost index of 87. Median rent runs $1,410/mo per month, and the median home price is $324,000. With a median household income of $46,700, the purchasing power here stretches further than in most metros. Housing is indexed at 100, which drives most of the overall cost in Clarksville.
10. Knoxville, TN (Index: 88)
Knoxville sits 12% below the national average with a cost index of 88. Median rent runs $1,100/mo per month, and the median home price is $240,000. With a median household income of $42,898, the purchasing power here stretches further than in most metros. Housing is indexed at 73, which is the most affordable category in Knoxville.
How to Use This Data
The income tax savings are most meaningful for high earners. On a $100,000 salary, moving from California (effective state rate around 6.2%) to Texas (0%) saves approximately $6,200 per year in state taxes alone. On $200,000, that jumps to roughly $15,000. Use our take-home pay calculator to model your exact salary, and compare total costs including the higher property taxes or sales taxes common in no-income-tax states.
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