Key Takeaways:
Tennessee is the cheapest no-income-tax state for homeowners, scoring 95 on a weighted cost index, while New Hampshire ranks most costly at 155, a Kiplinger ranking of nine states shows.
Kiplinger built the index from three recurring ownership expenses — property taxes (50 percent of the score), utility bills (30 percent) and home insurance premiums (20 percent) — using PropertyShark, Move.org and LendingTree data, with 100 equal to the U.S. national average baseline.
The spread is wide. Texas scores 150 on high property tax rates and surging insurance, Florida ranges from 103 to 155 depending on coastal exposure, and Alaska spans 84 to 151 on utility bills roughly 50 percent above the U.S. average. Washington lands at 133, South Dakota at 102, Nevada at 100 and Wyoming at 96.
The ranking highlights a trade-off for households weighing relocation: states that forgo personal income tax often recover revenue through property taxes, sales taxes or insurance costs. Tennessee, despite the lowest overall score, carries one of the highest sales tax rates in the U.S. and ranks seventh-most-expensive for home insurance, according to LendingTree.
New Hampshire's 155 score stems from an effective property tax rate of 1.5 percent, well above the national average of about 0.90 percent, according to the Tax Foundation. Lacking both a state income tax and a sales tax, the Granite State leans on local property levies to fund public services, while utility bills run about 21 percent above the national average. Texas mirrors the pattern, relying on high effective property tax rates to fund local government, compounded by severe-weather insurance premiums and summer air-conditioning demand that push its score to 150. Rice University's Kinder Institute for Urban Research reported in 2026 that Texas homeowners pay monthly housing costs among the highest in the nation relative to local incomes.
Florida's score spans 103 to 155 because homeowners insurance premiums vary sharply by location, with coastal zones facing annual costs of $5,000 to $10,000 on hurricane risk and reinsurance spikes, per the Insurance Information Institute and LendingTree. Alaska's 84-to-151 range reflects rural boroughs free of property taxes against urban levies and utility bills roughly 50 percent above the U.S. average on harsh winters and remote fuel delivery. Washington scores 133 on property assessments tied to high home prices, though insurance premiums run 35 percent below the national average and hydroelectric power keeps electricity rates low. Washington also levies a state tax on certain high-value capital gains and an estate tax capped at 20 percent, with a 9.9 percent income tax on earners above $1 million set to start in 2028.
A score below 100 signals combined homeowner expenses below the national baseline; above 100 means higher. Wyoming's 96 benefits from natural-resource revenue that keeps property tax burdens up to 40 percent below the national average, while Nevada's 100 reflects state-mandated property tax caps and tourism revenue funding infrastructure. South Dakota's 102 sits near the national midpoint, with severe Midwest weather pushing insurance premiums above average but renewable wind and hydroelectric generation keeping utility costs manageable.
For households comparing relocation options, the index suggests weighing total recurring carrying costs rather than income tax alone. Tennessee's low property assessments offset its high sales tax and rising insurance, while New Hampshire's tax-free income comes at the price of the nation's steepest property burden. Several states soften the load with targeted relief — Texas and Alaska offer homestead exemptions for residents 65 and older, Florida provides a $50,000 homestead exemption on primary residences, and South Dakota freezes property tax assessments for qualifying seniors.
Figures reflect data as of the ranking's August 2026 publication and recent market conditions, including coastal insurance spikes and summer cooling demand; readers should verify current rates, exemptions and tax changes against the latest official state announcements.
This article is for informational purposes only and does not constitute professional advice.
