Alaska
COLI 127.0 | total burden ~4.6%
- Property tax: 1.04%
- Sales tax: 0.00%
- Median home: $345,700
Cost of Living Including Taxes: The Full Picture
The standard cost of living index excludes taxes. That's a problem. Texas has no income tax but the 11th highest property tax. Oregon has no sales tax but income tax up to 9.9%. The "true" cost of living depends on your total tax burden.
All 50 states
COLI + tax burden, combined
Sorted by C2ER index. State and local tax burden from the Tax Foundation. The True COLI column adds a tax adjustment to the standard index to give a more complete picture.
| State | COLI | Income tax | Property tax | Sales tax | Total burden | True COLI |
|---|---|---|---|---|---|---|
| Mississippi | 83.3 | 0-5% | 0.63% | 7.00% | 9.8% | 82.3 |
| West Virginia | 84.1 | 2.36-5.12% | 0.53% | 6.00% | 9.8% | 83.0 |
| Kansas | 84.8 | 3.1-5.7% | 1.28% | 6.50% | 11.2% | 85.8 |
| Oklahoma | 84.9 | 0.25-4.75% | 0.85% | 4.50% | 9.0% | 82.7 |
| Arkansas | 86.0 | 2-4.4% | 0.57% | 6.50% | 10.2% | 85.5 |
| Missouri | 87.1 | 2-4.8% | 0.88% | 4.23% | 9.3% | 85.3 |
| Kentucky | 87.5 | 4% | 0.80% | 6.00% | 9.6% | 86.2 |
| Alabama | 87.9 | 2-5% | 0.39% | 4.00% | 9.0% | 85.7 |
| Iowa | 89.0 | 4.4-5.7% | 1.43% | 6.00% | 11.2% | 90.0 |
| Indiana | 89.4 | 3.05% | 0.79% | 7.00% | 9.3% | 87.6 |
| Louisiana | 89.6 | 1.85-4.25% | 0.52% | 4.45% | 9.1% | 87.5 |
| Tennessee | 89.7 | 0% | 0.56% | 7.00% | 7.6% | 85.4 |
| Ohio | 89.8 | 0-3.5% | 1.41% | 5.75% | 10.0% | 89.0 |
| Michigan | 90.3 | 4.25% | 1.38% | 6.00% | 8.6% | 87.5 |
| Nebraska | 90.8 | 2.46-5.84% | 1.53% | 5.50% | 11.5% | 92.3 |
| New Mexico | 91.3 | 1.7-5.9% | 0.67% | 4.88% | 10.2% | 90.8 |
| Georgia | 91.5 | 1-5.49% | 0.83% | 4.00% | 8.9% | 89.1 |
| Texas | 91.5 | 0% | 1.60% | 6.25% | 8.6% | 88.7 |
| South Carolina | 92.5 | 0-6.2% | 0.53% | 6.00% | 8.9% | 90.1 |
| Illinois | 93.4 | 4.95% | 1.97% | 6.25% | 12.9% | 97.0 |
| Wisconsin | 93.5 | 3.54-7.65% | 1.51% | 5.00% | 10.9% | 94.1 |
| North Dakota | 94.5 | 0% (eff. 2025) | 0.94% | 5.00% | 8.8% | 92.0 |
| North Carolina | 94.9 | 4.5% | 0.70% | 4.75% | 9.9% | 94.0 |
| South Dakota | 95.2 | 0% | 1.14% | 4.20% | 8.4% | 92.0 |
| Wyoming | 95.8 | 0% | 0.56% | 4.00% | 7.5% | 91.3 |
| Idaho | 96.8 | 5.695% | 0.56% | 6.00% | 10.7% | 97.1 |
| Minnesota | 97.1 | 5.35-9.85% | 1.02% | 6.88% | 12.1% | 99.5 |
| Montana | 99.2 | 4.7% | 0.74% | 0.00% | 10.5% | 99.2 |
| Pennsylvania | 99.5 | 3.07% | 1.36% | 6.00% | 10.6% | 99.7 |
| Arizona | 102.2 | 2.5% | 0.51% | 5.60% | 8.8% | 99.7 |
| Delaware | 102.4 | 2.2-6.6% | 0.53% | 0.00% | 12.4% | 105.3 |
| Florida | 102.8 | 0% | 0.80% | 6.00% | 9.1% | 100.7 |
| Utah | 103.5 | 4.65% | 0.52% | 6.10% | 12.1% | 105.9 |
| Virginia | 103.7 | 2-5.75% | 0.74% | 5.30% | 12.5% | 106.7 |
| Nevada | 104.2 | 0% | 0.48% | 6.85% | 9.6% | 102.9 |
| Colorado | 105.1 | 4.4% | 0.49% | 2.90% | 9.7% | 103.9 |
| Washington | 110.7 | 0% | 0.84% | 6.50% | 10.7% | 111.0 |
| Rhode Island | 111.8 | 3.75-5.99% | 1.24% | 7.00% | 11.4% | 113.1 |
| Maine | 112.1 | 5.8-7.15% | 1.13% | 5.50% | 12.4% | 114.9 |
| New Hampshire | 112.5 | 0% (interest/dividends only) | 1.86% | 0.00% | 9.6% | 111.2 |
| Connecticut | 112.8 | 3-6.99% | 1.63% | 6.35% | 15.4% | 120.1 |
| Oregon | 113.1 | 4.75-9.9% | 0.87% | 0.00% | 10.8% | 113.5 |
| Vermont | 114.5 | 3.35-8.75% | 1.73% | 6.00% | 13.6% | 119.2 |
| New Jersey | 115.2 | 1.4-10.75% | 2.23% | 6.63% | 13.2% | 119.3 |
| Maryland | 118.2 | 2-5.75% | 0.99% | 6.00% | 11.3% | 119.4 |
| New York | 126.5 | 4-10.9% | 1.40% | 4.00% | 15.9% | 134.6 |
| Alaska | 127.0 | 0% | 1.04% | 0.00% | 4.6% | 118.2 |
| California | 142.2 | 1-13.3% | 0.71% | 7.25% | 13.5% | 146.7 |
| Massachusetts | 148.4 | 5% + 4% surtax >$1M | 1.12% | 6.25% | 11.5% | 149.9 |
| Hawaii | 193.3 | 1.4-11% | 0.28% | 4.00% | 14.1% | 198.7 |
Sources: Tax Foundation state and local tax burden (FY 2024-2025), state revenue departments, C2ER Cost of Living Index.
No income tax states
Nine states, no general income tax
Each compensates differently. Some lean on property tax (New Hampshire, Texas), some on sales tax (Tennessee, Washington), some on resource extraction (Alaska, Wyoming). The total burden is rarely as low as the headline suggests.
Florida
COLI 102.8 | total burden ~9.1%
- Property tax: 0.80%
- Sales tax: 6.00%
- Median home: $398,500
Nevada
COLI 104.2 | total burden ~9.6%
- Property tax: 0.48%
- Sales tax: 6.85%
- Median home: $435,600
New Hampshire
COLI 112.5 | total burden ~9.6%
- Property tax: 1.86%
- Sales tax: 0.00%
- Median home: $425,800
North Dakota
COLI 94.5 | total burden ~8.8%
- Property tax: 0.94%
- Sales tax: 5.00%
- Median home: $248,500
South Dakota
COLI 95.2 | total burden ~8.4%
- Property tax: 1.14%
- Sales tax: 4.20%
- Median home: $285,400
Tennessee
COLI 89.7 | total burden ~7.6%
- Property tax: 0.56%
- Sales tax: 7.00%
- Median home: $298,500
Texas
COLI 91.5 | total burden ~8.6%
- Property tax: 1.60%
- Sales tax: 6.25%
- Median home: $298,700
Washington
COLI 110.7 | total burden ~10.7%
- Property tax: 0.84%
- Sales tax: 6.50%
- Median home: $568,500
Wyoming
COLI 95.8 | total burden ~7.5%
- Property tax: 0.56%
- Sales tax: 4.00%
- Median home: $298,500
Property tax deep dive
Where property tax is highest and lowest
Effective property tax rate is the percent of home value paid annually. Multiplying by median home value gives a far more useful figure than rate alone.
Lowest 10
| State | Rate | Median bill |
|---|---|---|
| Hawaii | 0.28% | $2,739 |
| Alabama | 0.39% | $844 |
| Nevada | 0.48% | $2,091 |
| Colorado | 0.49% | $2,575 |
| Arizona | 0.51% | $2,010 |
| Louisiana | 0.52% | $1,031 |
| Utah | 0.52% | $2,474 |
| Delaware | 0.53% | $1,884 |
| South Carolina | 0.53% | $1,477 |
| West Virginia | 0.53% | $772 |
Highest 10
| State | Rate | Median bill |
|---|---|---|
| New Jersey | 2.23% | $10,537 |
| Illinois | 1.97% | $5,171 |
| New Hampshire | 1.86% | $7,920 |
| Vermont | 1.73% | $6,548 |
| Connecticut | 1.63% | $6,440 |
| Texas | 1.60% | $4,779 |
| Nebraska | 1.53% | $3,776 |
| Wisconsin | 1.51% | $4,014 |
| Iowa | 1.43% | $2,984 |
| Ohio | 1.41% | $2,968 |
By income level
How taxes shift across the income curve
Estimated combined state income + property + sales tax for the spotlight states. Higher earners benefit more from no-income-tax states; lower earners often pay more in sales and property tax.
| State | $50k | $80k | $120k | $200k |
|---|---|---|---|---|
| California | $6,498 | $12,524 | $21,978 | $36,526 |
| Florida | $2,500 | $4,000 | $5,348 | $6,788 |
| Massachusetts | $4,678 | $8,284 | $13,626 | $20,455 |
| New York | $6,670 | $12,416 | $20,621 | $30,301 |
| Oregon | $4,710 | $9,120 | $16,056 | $24,137 |
| Tennessee | $2,170 | $3,352 | $4,192 | $5,872 |
| Texas | $4,138 | $6,279 | $7,029 | $8,529 |
| Washington | $2,655 | $4,248 | $6,372 | $8,675 |
Estimates assume single filer, home value capped at 4x income, and 30% of income spent on taxable goods.
Frequently Asked
Tax burden, answered
Does cost of living include taxes?
No. The C2ER Cost of Living Index excludes state and local taxes entirely. This is a major gap, because tax burden can swing the picture by 5-15% of income depending on the state. We layer Tax Foundation burden estimates on top of COLI to produce a more honest 'true cost of living' measure.
Which states have no income tax?
Nine: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire historically taxed interest and dividends; that tax was phased out at the start of 2025. North Dakota became the tenth state in 2025 after eliminating its income tax. No-income-tax states often offset with higher property tax (NH, TX), higher sales tax (TN, WA), or both.
What state has the lowest property tax?
Hawaii at 0.28% effective rate. The other lowest are Alabama (0.39%), Nevada (0.48%), Colorado (0.49%), Louisiana (0.52%), and Utah (0.52%). But low rates don't always mean low bills - in California, the 0.71% rate applies to a $785,000 median home, producing a higher bill than Texas's 1.60% rate on a $298,700 home.
Is no income tax always cheaper?
No. Texas has no income tax but the 11th highest property tax burden. New Hampshire pairs no income tax with the second highest property tax in the country. For low and middle earners, no-income-tax states are often more expensive on a total burden basis. For high earners, the maths flips because income tax savings dominate.
How are state taxes calculated for retirees?
Retirement income is treated very differently across states. Most do not tax Social Security; Connecticut, Kansas, Minnesota, Nebraska, Utah, and Vermont still do, with various exemptions. Retirement account withdrawals are generally taxed as ordinary income, but Mississippi, Pennsylvania, and Illinois exempt them. See our retirement page for the full breakdown.