Best, worst states to be rich (2024)

FAQs

What is the hardest state to live in financially? ›

State income tax data was sourced from Tax Foundation's State Income Tax Rates. States that are friendlier to the rich included those without a state income tax, such as Nevada, Tennessee and Washington.

So what are the lowest income tax states? At the top of the list are the 9 states with no state earned income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

1. Massachusetts. The WalletHub report rated Massachusetts the No. 1 state to live in. The Bay State ranks first in the country for education and healthcare, with the highest reading and math test scores and one of the lowest dropout rates, a separate WalletHub report on school systems found.

Key findings included that of all 50 states, Texas was the easiest state to build wealth in, with 0% personal income tax and an overall score of 8.23 out of 10. Alternatively, Montana, West Virginia and Idaho were among the hardest states to accumulate wealth.

MoneyGeek's analysis found that Wyoming is the most tax-friendly state in America, followed by Nevada, Tennessee, Florida and Alaska. Except for Arizona, states that received a grade of A all share something in common: no state income tax. Texas — which received a B — also has no state income tax.

In 2019, Mississippi had the lowest ratio of millionaire households per capita in the country, with only 4.18 percent of households holding over one million U.S. dollars in assets.

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming do not levy state income taxes, while New Hampshire doesn't tax earned wages. States with no income tax often make up the lost revenue with other taxes or reduced services.

What state has no income tax? ›

The nine states that don't have an earned income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

Mississippi. Mississippi is the poorest U.S. state, with 18.8% of its residents living in poverty. The state also has the highest child poverty rate, with 27.9% of its under-18 population meeting federal poverty guidelines.

Hawaii is the most expensive state to live in, according to new cost of living data from doxo, an online bill payment service. Doxo recently released its 2024 Cost of Bills Index, which compares average household costs by state and by major U.S. cities.

Hawaii is the State with the Highest Cost of Living

The sunny state of Hawaii is the most expensive state to live in, with an average annual cost of living of $55,491. Despite having the highest cost of living ($55,491), Hawaii also has the lowest annual average salary ($61,420) among these 10 states.

Cheapest Southern States to Live In

Mississippi: According to World Population Review, in 2023, Mississippi holds the title of the cheapest state to live in the United States. Its cost of living index is 85, and overall costs in the state are 17% lower than the national average.