# What are the best states for high-income earners?

Olivia Watson · August 4, 2026

> Alaska has no state income tax, making it one of the most tax-friendly states for high-income earners. This allows them to keep a larger portion of...

Alaska has no state income tax, making it one of the most tax-friendly states for high-income earners.

This allows them to keep a larger portion of their income.

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Florida is another state with no state income tax, which is a major draw for high-earners looking to reduce their overall tax burden.

Nevada also has no state income tax, and its low property taxes make it an attractive option for affluent individuals and families.

South Dakota has a flat state income tax rate of just 1.5%, which is significantly lower than the top marginal rates in high-tax states.

Texas has no state income tax, but it does have relatively high property taxes, which can offset some of the savings from not paying state income tax.

Wyoming is another state with no state income tax, making it a popular destination for high-income earners seeking to maximize their after-tax income.

California, on the other hand, has a top marginal state income tax rate of 13.3%, the highest in the nation.

This can result in a combined federal and state tax rate exceeding 50% for high-income individuals.

Hawaii also has a high top marginal state income tax rate of 11%, in addition to its high cost of living, making it one of the most expensive states for high-income earners.

New York's top marginal state income tax rate of 10.9% can significantly increase the tax burden for high-income individuals, especially when combined with the state's high cost of living.

New Jersey, with a top marginal state income tax rate of 10.75%, is another state that can be challenging for high-income earners due to its overall tax environment.

Connecticut's top marginal state income tax rate of 6.99%, while lower than some other high-tax states, can still be a significant expense for high-income individuals.

Massachusetts, with a flat state income tax rate of 5%, may be more attractive for high-income earners than states with progressive income tax structures.

The tax burden for high-income earners can have a significant impact on their overall financial situation, as it can affect their ability to save, invest, and enjoy their wealth.

The choice of where to live and work can be heavily influenced by the state's tax environment, with high-income individuals often seeking to minimize their tax liability.

The availability of state-level tax credits, deductions, and other incentives can also play a role in determining the most tax-friendly states for high-income earners.

High-income earners in states with no state income tax, such as Alaska, Florida, and Texas, can potentially save thousands of dollars annually compared to those living in high-tax states.

The impact of state taxes on high-income earners can be even more pronounced in states with high local (city or county) income taxes, such as New York City.

While tax considerations are often a primary factor for high-income earners, other factors such as cost of living, quality of life, and access to amenities and services can also influence their choice of location.

The tax-friendly status of a state can change over time, as lawmakers adjust tax policies and rates, making it important for high-income earners to stay informed about the evolving tax landscape.

High-income earners may also consider the long-term implications of state taxes, such as the impact on their retirement savings and estate planning strategies.

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