6 States Where High Earners Pay Less Than $10K in Taxes

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High earners in the U.S. often look for states where taxes won’t take a huge bite out of their income. Recent analysis by Avantis AI examined all 50 states to pinpoint where top earners can keep their annual tax bills under $10,000.

By examining the three primary tax categories — income, property and sales tax — alongside the average salary of the nation’s top 10% of earners, the research identified where tax-friendly policies leave more money in residents’ pockets.

Here’s a closer look at the top states for high earners looking to minimize their annual tax spend under $10,000.

You can also find out how much the richest 1% pays in taxes in your state.

Alaska

• Income tax: 0%
• Sales tax: 0%
• Property tax: 1.2%
• Annual tax burden for top 10% earners: $2,012

Alaska takes the lead as the ultimate state for minimizing taxes, with zero income and sales tax. Top earners in Alaska only face a modest property tax rate of 1.2%, resulting in an annual tax cost of just $2,012.

While Alaska’s remote location means a higher cost of living, 1.1 times more than the U.S. average, the state’s unique tax benefits make it a haven for those aiming to maximize earnings.

New Hampshire

• Income tax: 0%
• Sales tax: 0%
• Property tax: 2.2%
• Annual tax burden for top 10% earners: $3,688

New Hampshire ranks high with no income and no sales tax. Though it has the highest property tax on this list at 2.2%, its overall tax burden remains light, coming to $3,688 annually for high earners.

Those willing to trade off higher property taxes for relief on income and sales taxes find New Hampshire an attractive choice, letting high earners save more while enjoying scenic New England.

Wyoming

• Income tax: 0%
• Sales tax: 4%
• Property tax: 0.6%
• Annual tax burden for top 10% earners: $7,711

Wyoming’s lack of income tax makes it another ideal spot for high-income residents. Property taxes sit at 0.6%, so the total annual tax burden is $7,711, and high-earners seem to be taking advantage of it.

According to SmartAsset, Wyoming saw a net gain of 316 high-income households in 2024, with newcomers earning nearly $1.6 million annually — almost triple the $535,000 income of those leaving the state.

Montana

• Income tax: 3.9%
• Sales tax: 0%
• Property tax: 0.8%
• Annual tax burden for top 10% earners: $7,837

Montana’s 3.9% income tax puts it slightly behind the top contenders, but the lack of a sales tax and low property tax at 0.8% make up for it. High earners in Montana end up with an annual tax burden of $7,837.

Montana’s tax-friendly policies and lack of sales tax keep everyday costs lower. For high earners who value a balance of reasonable income tax with other savings, Montana offers a solid option with vast natural beauty.

Delaware

• Income tax: 4.4%
• Sales tax: 0%
• Property tax: 0.6%
• Annual tax burden for top 10% earners: $8,382

Delaware’s tax structure is appealing for both individuals and businesses. With a 4.4% income tax, zero sales tax and a low 0.6% property tax, Delaware offers a manageable annual tax burden of $8,382.

Its proximity to larger cities without the tax costs of other nearby states adds to Delaware’s appeal, giving high earners a chance to keep more income close to business hubs.

South Dakota

• Income tax: 0%
• Sales tax: 4.5%
• Property tax: 1.2%
• Annual tax burden for top 10% earners: $9,555

South Dakota rounds out the top six, with a zero-income-tax policy and a moderate 4.5% sales tax. Property taxes at 1.2% lead to a total annual tax of $9,555.

South Dakota’s tax-friendly policies make it a favored state for those seeking to build wealth, and its steady economy and business-friendly climate keep it attractive for both personal and professional growth.

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