When you think about moving to a new city, you probably picture better weather, a shorter commute, or maybe even a fresh start. But what about saving thousands on taxes?
Yep—where you live can make a serious difference to your wallet. Whether you’re a retiree stretching your nest egg, a business owner hunting for better margins, or a high-income earner looking to keep more of your paycheck, tax-friendly cities can offer a financial edge that compounds year over year.
Let’s break down five of the most tax-savvy cities in the U.S. where your money can go further—with less owed to Uncle Sam.
1. Cheyenne, Wyoming: The Hidden Tax Haven of the West
If you’ve never thought of moving to Wyoming, Cheyenne might change your mind.
Cheyenne is a goldmine for anyone who wants to escape high taxes. The state of Wyoming levies no individual or corporate income tax, which is music to the ears of business owners and high-net-worth individuals.
Key Tax Perks:
- 🚫 No personal or corporate income tax
- 🏠 Low property taxes (among the lowest in the country)
- 🛍️ Sales tax of just 4% (counties may add up to 2%)
Thanks to its business-friendly policies and minimal regulations, Wyoming ranks #1 in the Tax Foundation’s 2025 State Business Tax Climate Index.
If you’re a government contractor, small business, or even a nonprofit looking for a low-tax base of operations, Cheyenne offers a unique blend of affordability and financial freedom.
2. Houston, Texas: Big City, Bigger Tax Savings
Everything’s bigger in Texas—including the tax benefits.
Houston, one of the country’s most diverse and economically vibrant cities, offers no state income tax and a booming job market, especially in energy, healthcare, and tech sectors.
Key Tax Perks:
- 🚫 No state income tax
- 🏠 Generous homestead exemptions help offset property taxes
- 🛍️ Sales tax can reach 8.25%, but many residents see this as a fair trade-off
While Texas businesses do pay a franchise tax, it’s competitive compared to corporate taxes in states like California or New York.
Kiplinger regularly ranks Texas as one of the best states for tax-friendly retirement, and Houston offers that advantage with the energy of a major metro.
3. Memphis, Tennessee: Where Your Paycheck Stretches Further
If Elvis were still around, he’d probably be singing about Memphis’s low tax burden.
Tennessee officially dropped its Hall Tax (on investment income) in 2021, making it one of the few states that taxes neither personal income nor capital gains.
Key Tax Perks:
- 🚫 No state income tax
- 🏠 Property tax rate in Memphis: ~0.85%, below the U.S. average
- 🛍️ Sales tax is higher (up to 9.75%)—but many residents are fine with that trade-off
Memphis is a growing logistics and transportation hub, thanks in part to FedEx headquarters. Combine that with the state’s pro-business environment and low cost of living, and it’s a compelling option for both young professionals and retirees.
Bonus: Tennessee doesn’t tax Social Security or pension income either, making it a retirement-friendly gem.
4. Jacksonville, Florida: Where Sunshine Meets Savings
Florida isn’t just for snowbirds. It’s for anyone looking to live well—and save well.
Jacksonville, with its Atlantic shoreline and laid-back lifestyle, doubles as a tax haven for residents and businesses.
Key Tax Perks:
- 🚫 No state income tax
- 🏠 Low property taxes, averaging 0.97%
- 🧾 No estate or inheritance tax
If you’re a high-net-worth individual considering a wealth transfer strategy or just looking to protect your retirement income, Florida checks all the boxes. Social Security, pensions, and IRA distributions are tax-exempt at the state level.
According to AARP’s Tax-Friendly Retirement Guide, Florida continues to attract retirees not just for the weather, but for the wealth preservation.
5. Honolulu, Hawaii: Unexpected Tax Benefits in Paradise
Wait—Hawaii? Isn’t that one of the most expensive places to live?
Yes, but here’s the twist: Hawaii offers some of the lowest property taxes in the nation, and its treatment of retirement income is surprisingly friendly.
Key Tax Perks:
- 🏠 Lowest average property tax rate in the U.S. at just 0.28%
- 💼 Exemptions on Social Security and public pensions
- 🛍️ General Excise Tax (GET) is 4.5%, functionally acting like a sales tax
If you own property or plan to retire in paradise, Honolulu might be more financially viable than you think. While cost of living is high, smart tax planning can significantly offset housing and import-related expenses.
The Tax Policy Center notes that Hawaii compares favorably to high-tax coastal states like California and New York—especially for homeowners and retirees.
Should You Relocate for Tax Savings?
We’re not saying pack your bags tomorrow, but don’t underestimate the impact of taxes on your long-term wealth. A city with no income tax could save you five to six figures annually, depending on your income level.
Consider these questions before moving:
- Do you own a business or plan to start one?
- Are you approaching retirement?
- Is your current state chipping away at your income, savings, or investments?
Working with a tax professional—like us at JS Morlu—can help you map out how a relocation might impact your taxes, investment strategy, and estate plan. We specialize in helping high-net-worth individuals, retirees, and small business owners maximize savings and plan with confidence.
Want to explore a tax-friendly future?
JS Morlu offers personalized tax planning and consulting that aligns with your lifestyle, goals, and the laws of your current (or future) state.
📞 Book a free consultation today and let us help you find the perfect balance of lifestyle and financial freedom.
