TOP 3 CITIES FOR LOWEST TAXES IN UNITED STATES

Billings, Las Vegas and Cheyenne appeared among the U.S. cities with relatively low tax burdens in a nationwide comparison based on 2014 data. In 2026, however, tax rules have changed, making it important to distinguish between cities with low overall tax burdens and states that simply have no individual income tax.

 

 Taxes are an important part of the cost of living in the United States, but comparing tax burdens is more complicated than simply looking at state income tax rates. Depending on where you live, your overall tax bill can include federal and state income taxes, sales taxes, property taxes, vehicle taxes and other local charges.

The cities highlighted below originally appeared among the locations with relatively low tax burdens in a nationwide comparison produced by the District of Columbia’s Office of Revenue Analysis (ORA). The original study was based on 2014 tax data and a hypothetical family living in the largest city in each state. It should therefore be read as a historical comparison rather than a current 2026 ranking.

That distinction is particularly important for anyone considering moving within the United States. A state with no individual income tax, for example, can still have significant property, sales or other taxes. Likewise, a city with higher taxes may provide public services or other benefits funded by those revenues. Learn more about where the taxes paid in the United States go and how the government spends them.

3 – Billings, Montana

Billings was the only city among the top 10 locations in the original study that was not located in a state without an individual income tax. It reached the top three because of its relatively low sales and property tax burdens in the 2014 comparison.

At the time of the study, Montana did not have a general sales tax, and the state’s taxation of oil and gas production was an important part of its revenue structure. The region around Billings was also benefiting from an oil and gas boom. These factors contributed to the relatively light tax burden calculated for the hypothetical household in the study.

The tax picture in Montana has changed since then. Montana still does not have a general-use sales tax, although certain communities can impose resort or local-option taxes.

Montana also changed its individual income tax structure for 2026. Under the new rules, the state has a 4.7% rate on taxable income up to specified thresholds and a 5.65% rate above those thresholds for 2026. The top rate is scheduled to fall to 5.4% in 2027 under current law.

The state also introduced a new property-tax structure in 2026, including lower rates for qualifying primary residences and long-term rentals.

2 – Las Vegas, Nevada

Las Vegas was ranked second in the original comparison of tax burdens. In that study, a hypothetical household earning $25,000 a year would pay about $3,260 in taxes, while a household earning $150,000 would pay about $8,314.

These figures helped place Las Vegas among the locations with the lowest calculated tax burdens in the 2014 study. Nevada did not impose a state individual income tax, and property taxes were relatively low in the comparison.

The absence of an individual state income tax remains an important feature of Nevada’s tax system in 2026. The Tax Foundation lists Nevada among the eight states that do not levy an individual income tax.

That does not mean residents pay no taxes. Sales and other state and local taxes still apply, and the total cost of living also depends on housing, insurance, transportation and other expenses.

For Brazilians living in California or considering a move within the United States, Las Vegas can therefore be relevant to a broader cost-of-living comparison. 

1 – Cheyenne, Wyoming

Cheyenne, Wyoming, was the top city in the original comparison. Wyoming had no state individual income tax, while the study cited a 6% sales tax rate in Cheyenne, a very low gas tax and an effective property tax rate of 0.67%.

The original study also cited relatively low unemployment and estimated that families earning $25,000 and $150,000 a year would pay approximately $2,476 and $6,307 in taxes annually, respectively. These figures were calculated using the assumptions and tax rules in effect for the study year and should not be interpreted as current 2026 tax bills.

Wyoming continues to have no individual state income tax in 2026, according to the Tax Foundation’s current state income-tax data.

However, the absence of an individual income tax is only one part of the picture. Residents can still pay sales taxes, property taxes, vehicle-related charges and other state and local taxes. The total cost of living should therefore be considered before making a relocation decision.

What changed since the original ranking?

The tax landscape in the United States changes regularly. That is why a ranking based on one year’s tax burden should not be treated as a permanent list of the cheapest places to live.

The District of Columbia’s Office of Revenue Analysis continues to publish tax-burden studies comparing major taxes across jurisdictions. Its nationwide dashboard analyzes income, property, auto and sales taxes for hypothetical households at different income levels. The most recent nationwide study identified by ORA is based on 2021 tax-year data, while the agency continues to publish other updated tax information.

The Tax Foundation’s 2026 data also show that eight states have no individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Washington does not tax ordinary wage income but does tax certain capital gains.

This means that someone researching where to live in the United States should look beyond a simple “no income tax” label. Sales taxes, property taxes, housing costs and other expenses can substantially change the amount a household actually spends.

What should Brazilians consider before moving to another state?

For Brazilians living in the United States, taxes are only one factor in the decision to move. Housing costs, employment opportunities, health insurance, transportation, schools, public services and proximity to family and community can all affect a household’s budget.

A state with no individual income tax may reduce one particular tax, but that does not automatically make it the least expensive place to live.

For this reason, the original ranking of Billings, Las Vegas and Cheyenne is best understood today as a historical reference showing how tax burdens differed in the 2014 study, rather than as a definitive 2026 ranking.

Before moving, it is also important to check the current rules of the state and city where you plan to live, because tax rates and exemptions can change from year to year.

FAQ – Frequently Asked Questions

1. Which U.S. cities had the lowest tax burdens in the original study?
Billings, Montana; Las Vegas, Nevada; and Cheyenne, Wyoming were the three cities highlighted in the original article based on the 2014 nationwide comparison.

2. Does Nevada have a state income tax in 2026?
No. Nevada is one of the states that do not impose an individual state income tax on ordinary personal income.

3. Does Wyoming have a state income tax?
No. Wyoming does not impose an individual state income tax in 2026.

4. Does Montana have a sales tax?
Montana does not have a general-use state sales tax, although some communities may impose certain local or resort taxes.

5. Is a state without income tax necessarily cheaper to live in?
No. A state’s overall tax burden can also include sales, property, vehicle and other taxes, while housing and other living expenses can vary substantially from one location to another.