Florida Alternatives: 5 States With No Income Tax and Cheaper Homes

RoschetzkyIstockPhoto / iStock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

One of the reasons many people move to Florida is the lack of state income tax, which can provide a much-welcome tax break for many Americans. However, if saving money is the main reason you’re considering relocating to Florida, you may have some better options.

Florida isn’t the only state without income tax, and several of the others have a lower cost of living and more affordable housing. Before you decide to pack up and move to the sunshine state, you should consider these five other states with no income taxes and cheaper homes.

Florida vs. Other States With No Income Tax

Florida has been one of the fastest-growing states in the past few years. The population has been growing rapidly, with estimates from the U.S. Census Bureau placing the state’s population at 23.37 million. However, between 2020 and 2023, the population increased by over a million residents, which is a 5.1% gain. 

The reported median home value in Florida is about $436,600, which is slightly above the U.S. median of $410,800. The average annual cost of living in Florida is about $79,444, and it’s estimated that you’ll need around $977,296 put away in your nest egg to retire comfortably there as well. 

While Florida is a popular destination, it’s important to know that there are several states where you can pay less for a home in addition to paying $0 in income taxes.

Alaska 

• Median home value: $397,667
• Population: 740,133
• Average cost of living: $95,673
• The minimum savings you need to be able to retire: $1.3 million

South Dakota 

• Median home value: $321,667
• Population: 924,669
• Average cost of living: $71,252
• The minimum savings you need to be able to retire: $825,577

Tennessee 

• Median home value: $334,967
• Population: 7.2 million
• Average cost of living: $69,938
• The minimum savings you need to be able to retire: $791,027

Texas 

• Median home value: $343,193
• Population: 31.3 million
• Average cost of living: $71,639
• The minimum savings you need to be able to retire: $830,083

Wyoming 

• Median home value: $352,333
• Population: 587,618
• Average cost of living: $73,802
• The minimum savings you need to be able to retire: $872,144

Gabrielle Olya contributed to the reporting for this article.

Share This Article: