Economic Freedom
Tax Burden & Economic Freedom by State: All 50 Ranked
A handful of states levy no income tax at all, while others combine high income, sales, and property taxes with heavy regulation. This ranking scores all 50 states on economic freedom — the category that folds in tax burden, regulatory load, and business climate — so you can see where your paycheck and your business keep the most room to breathe.
Score reflects overall tax burden (income, sales, property), regulatory load, and business climate — not income tax alone. Darker green = stronger; click any state for its full breakdown.
Most economic freedom
Least economic freedom
All 50 states ranked
- 1NHNew Hampshire10.0A+
- 2TNTennessee9.8A+
- 3SDSouth Dakota9.6A+
- 4TXTexas9.4A+
- 5IDIdaho9.2A+
- 6FLFlorida9.0A+
- 7NCNorth Carolina8.8A
- 8GAGeorgia8.6A
- 9NDNorth Dakota8.4A-
- 10INIndiana8.2A-
- 11OKOklahoma8.0A-
- 12UTUtah7.8B+
- 13COColorado7.6B+
- 14KSKansas7.3B
- 15VAVirginia7.1B
- 16WYWyoming6.9B-
- 17IAIowa6.7B-
- 18PAPennsylvania6.5B-
- 19NENebraska6.3C+
- 20WIWisconsin6.1C+
- 21SCSouth Carolina5.9C
- 22MOMissouri5.7C
- 23MTMontana5.5C
- 24MAMassachusetts5.3C-
- 25CTConnecticut5.1C-
- 26ALAlabama4.9D+
- 27ARArkansas4.7D+
- 28LALouisiana4.5D+
- 29NVNevada4.3D
- 30MDMaryland4.1D
- 31MIMichigan3.9D-
- 32MNMinnesota3.7D-
- 33WAWashington3.5D-
- 34AZArizona3.3F
- 35OHOhio3.1F
- 36MEMaine2.9F
- 37KYKentucky2.7F
- 38NJNew Jersey2.4F
- 39MSMississippi2.2F
- 40ILIllinois2.0F
- 41RIRhode Island1.8F
- 42WVWest Virginia1.6F
- 43AKAlaska1.4F
- 44DEDelaware1.2F
- 45VTVermont1.0F
- 46OROregon0.8F
- 47CACalifornia0.6F
- 48HIHawaii0.4F
- 49NYNew York0.2F
- 50NMNew Mexico0.0F
Further reading
States With No Income Tax: The 9-State List for 2026 (and the Catch)
Nine states levy no broad income tax on wages. Here is the full 2026 list, the fine print on Washington and New Hampshire, and why “no income tax” doesn’t always mean lower taxes.
States With No Sales Tax: The 5 NOMAD States (2026)
Five states charge no statewide sales tax. Here is the full NOMAD list, the catch hiding in each one, and why a 0% sales tax doesn’t always mean a lower overall tax bill.
Property Taxes by State: Highest and Lowest (2026)
Effective property-tax rates range from under 0.3% to over 2.2% depending on where you live. Here are the highest- and lowest-tax states, and why the gap is so wide.
Best States to Retire for Taxes (2026)
The right state can mean thousands more in your pocket each year. Here is what makes a state tax-friendly for retirees, and which ones spare Social Security, pensions, and 401(k)s.
Common questions
Which state has the lowest tax burden?
New Hampshire ranks #1 for economic freedom, scoring 10.0/10 — typically a no-income-tax state with a light overall tax and regulatory load. The full ranking is above.
Which states have no income tax?
Nine states levy no broad personal income tax: Alaska, Florida, Nevada, New Hampshire (wages), South Dakota, Tennessee, Texas, Washington (wages), and Wyoming. Most of them cluster near the top of this economic-freedom ranking.
Which state has the highest tax burden?
New Mexico ranks lowest on economic freedom, reflecting a heavy combined income/sales/property tax load plus higher regulatory burden.
Is this just income tax?
No — the economic-freedom score folds in total tax burden (income, sales, and property), regulatory load, and business climate, drawing on the Fraser Institute’s Economic Freedom of North America and related sources. See the methodology page.