Fastest Growing Low Tax States Could Include Yours

South Carolina topped the latest list of popular moving destinations, but tax rates and home prices differ sharply across…

The most popular states to move to in 2024 offered a mix of lower housing costs, tax differences and warmer weather. South Carolina led the list, while Alabama and Arkansas had the lowest average home prices among the 10 destinations.

South Carolina led the latest state migration rankings

The ranking covers people who moved between July 1, 2023, and June 30, 2024, using U.S. Census Bureau data published in a January 2025 report. Seven of the 10 states are in the Sun Belt. Lower housing costs than in many coastal states are another common feature, though prices and tax bills vary widely within each state.

South Carolina ranked first, with population growth of 1.26% over the period. The other states, in order, were Idaho, Delaware, North Carolina, Tennessee, Nevada, Alabama, Montana, Arizona and Arkansas. Separate moving company rankings differed in places: United Van Lines placed Delaware second, South Carolina third, North Carolina fifth and Alabama sixth.

A migration ranking can point to where people are moving, but it does not show what a household will spend after arriving. A state with no income tax can collect more through sales taxes, while a lower home price does not tell you the full cost of owning a particular property.

Compare home prices and state taxes before choosing

The table brings together reported 2024 average home prices and the tax rates or features provided for each destination. Home listing prices and monthly payment estimates are separate measures, available for only some states and noted below.

State and rank2024 average home priceIncome tax detailSales tax detail
South Carolina, 1$297,794Top rate 6.2%State rate 6.00%
Idaho, 2$454,300Top rate 5.695%State rate 6.00%
Delaware, 3$388,1636.60% over $60,000; 5.55% under $60,000No state or local sales tax
North Carolina, 4$330,819Flat rate of 4.50% for tax year 2024State rate 4.75%; counties can add tax
Tennessee, 5$321,434No income taxCombined state and local rate 9.55%; state portion 7.0%
Nevada, 6$443,203No income taxState rate 6.85%; local rates can apply
Alabama, 7$228,101Top rate 5% above specified income thresholdsCombined state and local rate 9.29%; state portion 4.0%
Montana, 8$468,194Top rate 5.9% as of 2025No general use sales tax
Arizona, 9$431,491Flat rate of 2.5% for tax year 2024State rate 5.6%; cities can add tax
Arkansas, 10$209,250Top rate reduced from 4.4% to 3.9%Combined state and local rate 9.45%; state portion 6.5%

For comparison, the 2024 average home price was $773,362 in California and $394,728 in Florida. On that measure, every state in the top 10 was below California, and several were below Florida. These are statewide averages, not a quote for a home, and they should not be treated as equivalent to a median listing price.

A couple reviews home documents with a real estate agent at a kitchen table.

Alabama had the lowest average home price in this group at $228,101, followed by Arkansas at $209,250. The Arkansas figure is lower, despite the state ranking tenth for migration. For a different gauge, Realtor.com reported a median Arkansas listing price of $285,000 and an average monthly payment of about $1,494. Those numbers describe listings and an estimated payment, not the same calculation as the average home price.

Tax savings depend on how you earn and spend

Income tax is only one part of a household budget. Tennessee and Nevada do not impose a state income tax, but Tennessee’s combined sales tax rate was 9.55%, and Nevada’s state sales tax rate was 6.85% before any local additions. Alabama and Arkansas also had high combined sales tax rates, at 9.29% and 9.45%, respectively. A family that spends a large share of its income on taxable purchases may feel those rates differently from a household with a different spending pattern.

Delaware takes the opposite approach on sales tax, with no state or local sales tax, but its top personal income tax rate is 6.60% for incomes over $60,000. The rate is 5.55% for incomes under that threshold. Montana has no general use sales tax, but its top individual income tax rate was 5.9% as of 2025. The reported data describes some thresholds and rates, not every tax circumstance, so check how the rules apply to your income and purchases.

North Carolina and Arizona use flat income tax rates in the figures reported: 4.50% in North Carolina for tax year 2024 and 2.5% in Arizona for tax year 2024. North Carolina’s state sales tax rate was 4.75%, with county rates able to raise the total. Arizona’s 5.6% state sales tax can also be increased by city taxes. The address you choose can therefore affect the final bill.

South Carolina’s tax figures are less striking than its first place migration ranking might suggest. Its state sales tax rate was 6.00% and its top marginal individual income tax rate was 6.2%. Its overall tax burden ranked 33rd in the 2025 State Tax Competitiveness Index, where first represented the best ranking and 50th the worst. Idaho had a 6.00% state sales tax rate and a 5.695% top income tax rate, while its overall tax burden ranked 11th.

Other index results offer context, not a personal tax estimate. Tennessee ranked eighth, Montana fifth and Nevada 17th in the 2025 State Tax Competitiveness Index. Alabama is known for low property tax rates, but its income tax rate reaches 5% on taxable income over $3,000 for single filers and $6,000 for married taxpayers filing jointly. In a home search, property tax deserves a separate check alongside sales and income taxes.

Use local costs to test whether a move fits

Housing figures also vary by source and date. In January 2025, Idaho’s median home listing price was $579,900, with an average monthly house payment of $3,040. North Carolina’s median listing price was $428,750 and the reported average monthly payment was $2,248. Those listing measures differ from the statewide average home prices in the table, and they are not interchangeable with a buyer’s actual mortgage payment.

Before moving, compare the same kinds of expenses across the locations you are considering. Start with a realistic home budget, then add estimated property taxes, state and local sales taxes, and income taxes that fit your household’s earnings. For sales taxes, check the city and county as well as the state. For a home, compare current listings and property tax records for the specific area rather than relying only on a statewide average.

Also weigh the practical reason for moving against the financial tradeoffs. Delaware’s inflow included more than 50% of newcomers aged 65 and older, and 12% arrived from New York, according to the moving study. That describes who moved, not a special tax qualification. The available figures do not establish eligibility for a tax break based on age or prior residence.

Statewide averages can help narrow a search, but they cannot settle it. A prospective resident should confirm current tax rates with the state and local tax authorities, then compare likely housing costs at the address and price range under consideration. Rates can change, and the figures here refer to the dates stated in the report.