10 Cheapest States To Live in With No Income Tax

Do you know which states across the United States are the most affordable states to live in without any income tax? GOBankingRates isolated 10 states without income tax and utilized data from the Bureau of Labor Statistics’ 2021 Consumer Expenditure Survey and the 2022 Cost of Living Indices from the Missouri Economic Research and Information Center to determine annual expenditures in each state. This includes reviewing annual spending across the categories of groceries, housing utilities, transportation and health.

These are the cheapest states to live in with no income tax.

• Annual expenditure: $84,730.85
• Annual cost of necessities: $44,430.95
• Annual groceries expenditures: $7,052.32
• Annual housing expenditures: $16,081.95
• Annual utilities expenditures: $6,174.03
• Annual transportation expenditures: $6,704.76
• Annual healthcare expenditures: $8,417.89

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• Annual expenditure: $77,703.41
• Annual cost of necessities: $38,107.24
• Annual groceries expenditures: $5,537.73
• Annual housing expenditures: $14,544.03
• Annual utilities expenditures: $4,831.11
• Annual transportation expenditures: $6,074.06
• Annual healthcare expenditures: $7,120.31

• Annual expenditure: $76,431.78
• Annual cost of necessities: $39,202.50
• Annual groceries expenditures: $5,706.02
• Annual housing expenditures: $16,705.08
• Annual utilities expenditures: $3,733.13
• Annual transportation expenditures: $6,483.16
• Annual healthcare expenditures: $6,575.11

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• Annual expenditure: $69,069.70
• Annual cost of necessities: $36,589.22
• Annual groceries expenditures: $5,479.88
• Annual housing expenditures: $15,312.99
• Annual utilities expenditures: $3,994.96
• Annual transportation expenditures: $6,545.66
• Annual healthcare expenditures: $5,255.73

• Annual expenditure: $68,801.98
• Annual cost of necessities: $35,118.75
• Annual groceries expenditures: $5,542.99
• Annual housing expenditures: $14,384.93
• Annual utilities expenditures: $4,277.90
• Annual transportation expenditures: $5,608.13
• Annual healthcare expenditures: $5,304.80

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• Annual expenditure: $63,246.96
• Annual cost of necessities: $31,996.15
• Annual groceries expenditures: $5,485.14
• Annual housing expenditures: $12,316.68
• Annual utilities expenditures: $3,792.25
• Annual transportation expenditures: $5,244.49
• Annual healthcare expenditures: $5,157.59

• Annual expenditure: $61,908.40
• Annual cost of necessities: $30,734.09
• Annual groceries expenditures: $4,748.88
• Annual housing expenditures: $11,229.53
• Annual utilities expenditures: $4,337.02
• Annual transportation expenditures: $5,250.17
• Annual healthcare expenditures: $5,168.50

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• Annual expenditure: $61,908.40
• Annual cost of necessities: $30,626.77
• Annual groceries expenditures: $5,427.29
• Annual housing expenditures: $10,924.59
• Annual utilities expenditures: $3,483.98
• Annual transportation expenditures: $5,557
• Annual healthcare expenditures: $5,233.92

• Annual expenditure: $60,369.06
• Annual cost of necessities: $29,801.01
• Annual groceries expenditures: $4,964.50
• Annual housing expenditures: $10,831.79
• Annual utilities expenditures: $3,961.17
• Annual transportation expenditures: $5,142.21
• Annual healthcare expenditures: $4,901.35

• Annual expenditure: $60,235.20
• Annual cost of necessities: $30,167.17
• Annual groceries expenditures: $5,190.63
• Annual housing expenditures: $9,121.50
• Annual utilities expenditures: $3,986.51
• Annual transportation expenditures: $6,318.38
• Annual healthcare expenditures: $5,550.14

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Methodology: In order to find the cheapest states to live in wth no income tax, GOBankingRates first isolated those 10 states with no income tax. Then found (1) the national average annual expenditures as sourced from the Bureau of Labor Statistics’ 2021 Consumer Expenditure Survey data. Then, GOBankingRates created (2) state-level annual expenditure estimates by multiplying the national figure by each state’s overall cost of living index score for 2022 from the Missouri Economic Research and Information Center. All qualifying states were then ranked with No. 1 being the state with no income tax that is the cheapest to live in. GOBankingRates provided supplemental information on the average annual cost of groceries, housing, utilities, transportation, and healthcare in each qualifying state by again using MERIC’s cost of living indices for each category to factor out national estimates from the CEX. All data was collected on and up to date as of March 28, 2023.

Sources: Bureau of Labor Statistics’: 2021 Consumer Expenditure Survey and Missouri Economic Research and Information Center: 2022 Cost of Living Indices.