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# Are You Residing in a High-Growth, Minimal-Taxation State?
Individuals relocate for diverse individual and career considerations, yet a current analysis by the Tax Foundation concerning America’s most desired locations indicates that the primary three elements consist of reduced living expenses, decreased levies, and abundant sunlight.
The majority, though not all, of the leading ten locations highlighted in the analysis maintain comparatively minimal taxes. A significant number exhibit diminished housing expenditures contrasted with states situated along the Eastern and Western Seaboards. Seven out of the foremost ten states are geographically positioned within the Sun Belt region.
The Tax Foundation’s report from January 2025 relies on information amassed by the U.S. Census Bureau spanning from July 1, 2023, to June 30, 2024.
### Principal Conclusions
* South Carolina, the foremost destination, levies a state sales tax of 6% alongside a maximum state income tax rate of 6.2%, while housing expenditures remain reasonably tempered.
* Additional sought-after destinations encompass Idaho, Delaware, North Carolina, Tennessee, Nevada, Alabama, Montana, Arizona, and Arkansas.
* Numerous favored destinations are situated within the Sun Belt, affording both sunshine and financial advantages.
* Alabama boasts the most economical housing expenditures, presenting an average home valuation of $228,101 in 2024.
## #1 South Carolina
According to U.S. Census statistics, South Carolina’s populace expanded by 1.26% spanning from 2023 to 2024. United Van Lines positioned the state third in its 48th Annual National Movers Study, disseminated in January 2025.
Within the Tax Foundation’s 2025 State Business Tax Climate Index, South Carolina secures the 33rd position overall among 50 states, wherein 1st signifies the most favorable and 50th denotes the least favorable. South Carolina enforces a state sales tax rate of 6.00%. Its uppermost marginal individual income tax rate stands at 6.2%.
Okay, here’s an overview of some favored locales for moving, based on recent figures, along with some personal thoughts:
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As per Norada, a real estate investment platform, the typical home cost in South Carolina during 2024 is $297,794. For perspective, California’s average is a staggering $773,362, while Florida is at $394,728.
**Idaho (Positioned #2):**
The Tax Foundation indicates Idaho’s population increase is robust, at 0.83%, positioning it in second place for expansion. Realtor.com has it slightly lower, at fifth. The median asking price for a residence there is roughly $579,900, with typical monthly installments reaching $3,040 as of January 2025. You’ll need to factor in taxes, even though Idaho is reasonably competitive, ranking 11th overall for tax obligation according to the Tax Foundation. The sales tax is 6.00% (identical to South Carolina), though the highest individual income tax rate is somewhat lower at 5.695%. Norada cites an average home price of $454,300 in 2024.
**Delaware (Ranked #3):**
Delaware experienced a growth rate of 0.79% from 2023 to 2024, as per the Tax Foundation. United Van Lines places it at #2 in their standings, noting that over half of new inhabitants are 65 or older, with 12% originating from New York. Notably, Delaware has no state or local sales tax. The top individual income tax rate is 6.60% (for income exceeding $60,000), but it decreases to 5.55% for income below that. Norada’s information reveals an average home price of $388,163 in 2024.
**North Carolina (Ranked #4):**
North Carolina, South Carolina’s northern neighbor, secures fourth place with a growth rate of 0.76%, according to the Tax Foundation. Realtor.com lists the median home listing price at $428,750, with average monthly payments of $2,248. United Van Lines ranks it fifth in their standings.
Once more, South Carolina’s average home price in 2024 is $297,794, as reported by Norada.
Alright, here’s a summary of several states possessing advantageous fiscal guidelines along with comparatively economical lodging, rendering them alluring for individuals aiming to migrate:
**North Carolina**
North Carolina provides an overall tax-supportive setting by way of a stable earnings tax percentage, implying that each person remits the identical percentage irrespective of earnings. In 2024, that percentage is 4.50%, which is truly a decrease from the previous year or so. The state’s sales tax is 4.75%, but counties can include their own local sales taxes on top of that.
Real estate is additionally more reasonably priced than in a few other states. Based on Norada, the typical home value in North Carolina in 2024 is around $330,819. To place that in context, California’s average is $773,362, and Florida’s is $394,728.
**Tennessee**
Tennessee is a well-known destination, with a high percentage of individuals relocating. A large appeal is that Tennessee has no state earnings tax! However, their combined state and local sales tax rates are substantial, averaging around 9.55%, with the state part being 7.0%.
Even with the elevated sales tax, Tennessee ranks well (8th place) on the Tax Foundation’s 2025 State Tax Competitiveness Index as a result of that absence of earnings tax.
Lodging costs are also sensible. Norada information an average home value of $321,434 in Tennessee for 2024, again much lower than California and Florida.
**Nevada** Toncoin (TON) Value Forecast for March 26th
Nevada is another state without any earnings tax, rendering it appealing to those aiming to lower their tax load. It ranks 6th in the Tax Foundation’s report and 17th on the 2025 State Tax Competitiveness Index.
The state sales tax rate is 6.85%, but local governments can include their own sales taxes.
The average home value in Nevada in 2024 is $443,203 (according to Norada). While higher than Tennessee and North Carolina, it’s still considerably less costly than California.
**Alabama**
Alabama is additionally observing a lot of inbound migration. The combined state and local sales tax rates can be quite substantial, up to 9.29%. The state sales tax is only 4.0%, so where you shop within the state can make a difference in how much you pay in taxes.
Alabama is well-known for its remarkably minimal real estate levies. The highest income tax percentage is 5% for those who file separately, with taxable revenue exceeding $3,000; for married taxpayers who file jointly, the highest percentage is 5% for taxable revenue exceeding $6,000.
According to Norada, a real estate investment website, the average cost of a home in Alabama in 2024 is $228,101, while in California, it is $773,362, and in Florida, it is $394,728.
## #8 Montana
Montana is ranked eighth on the Tax Foundation’s census data list.
People don’t always relocate there for income tax breaks. The state, according to Fidelity Investments, had some of the highest income tax percentages on individual income in the country as of December 2024.
Montana, however, is ranked fifth in the Tax Foundation’s 2025 State Business Tax Climate Index. The state’s highest marginal individual income tax percentage is 5.9% as of 2025. Montana, on the other hand, has no general sales tax, making it more tax-friendly in general.
According to Norada, the average cost of a home in Montana in 2024 is $468,194, compared to $773,362 in California and $394,728 in Florida.
## #9 Arizona
Arizona is ranked ninth on the Tax Foundation’s census data list. In United Van Lines’ 2024 National Movers Study, the state is ranked slightly lower, at number ten.
Arizona has a very attractive flat income tax percentage of 2.5% as of the 2024 tax year, which is a recent development. The state’s sales tax percentage is as high as 5.6%, and Arizona cities can also impose sales taxes.
According to Norada, the average cost of a home in Arizona in 2024 is $431,491, while in California, it is $773,362, and in Florida, it is $394,728.
## #10 Arkansas
Arkansas is ranked tenth on the Tax Foundation’s list. Anticipated Binance Coin (BNB) Valuation for March 26th
Its combined state and local sales tax percentage is 9.45%, with the state government receiving 6.5%.
Nevertheless, the government has lowered its highest personal income tax percentage from 4.4% to 3.9%.
**Advice**
According to Norada, a property speculator online page, the typical residence value in Arkansas in 2024 amounts to $209,250, whereas in California it totals $773,362, and in Florida it reaches $394,728. Realtor.com indicates that the average listing value for residences in Arkansas is $285,000, with an average regular payment of roughly $1,494.
**Final Thoughts**
By comprehending government levies, you could more effectively ascertain which area suits your monetary demands. The movement to these governments demonstrates an increasing inclination for inexpensive lodging, advantageous levy regulations, and a nice environment.
