South Carolina topped the Tax Foundation's list of the most popular moving destinations in the United States for 2024, with lower taxes, cheaper housing, and warmer weather driving relocation decisions nationwide.
Why These Ten States Are Pulling In New Residents
The Tax Foundation's January 2025 report, built on U.S. Census Bureau data collected between July 1, 2023 and June 30, 2024, found a clear pattern among the states gaining the most new residents. Seven of the top ten sit in the Sun Belt. Most carry housing costs well below the national coastal averages, and several skip a state income tax altogether. South Carolina led the pack with population growth of 1.26 percent, followed by Idaho, Delaware, North Carolina, Tennessee, Nevada, Alabama, Montana, Arizona, and Arkansas.
Housing prices across this group tell their own story. Alabama had the cheapest average home price at $228,101 in 2024, while Idaho's average climbed to $454,300. Compare either figure to California's average of $773,362 or Florida's $394,728, according to data from real estate investment site Norada, and the appeal becomes obvious.
Comparing Taxes and Home Prices Across the Top Destinations
| State | Growth Rate | Top Income Tax Rate | State Sales Tax | Average Home Price (2024) |
|---|---|---|---|---|
| South Carolina | 1.26% | 6.2% | 6.00% | $297,794 |
| Idaho | 0.83% | 5.695% | 6.00% | $454,300 |
| Delaware | 0.79% | 6.60% (5.55% under $60,000) | None | $388,163 |
| North Carolina | 0.76% | 4.50% (flat) | 4.75% | $330,819 |
| Tennessee | 0.68% | None | 7.0% state, 9.55% combined | $321,434 |
| Nevada | N/A | None | 6.85% | $443,203 |
| Alabama | N/A | 5% | 4.0% state, 9.29% combined | $228,101 |
| Montana | N/A | 5.9% | None (general sales tax) | $468,194 |
| Arizona | N/A | 2.5% (flat) | 5.6% | $431,491 |
| Arkansas | N/A | 3.9% | 6.5% state, 9.45% combined | $209,250 |
South Carolina, Idaho and Delaware Lead the Pack
South Carolina ranked third in United Van Lines' 48th Annual National Movers Study, released the same month as the Tax Foundation report. Its overall tax burden lands at a middling 33rd out of 50 states on the Tax Foundation's 2025 State Tax Competitiveness Index, but its average home price of $297,794 keeps it attractive relative to bigger coastal markets.
Idaho took the number two migration spot, though Realtor.com ranks it fifth. Home costs there run higher, with a median listing price of $579,900 as of January 2025 and an average monthly payment near $3,040. Idaho compensates with a competitive overall tax ranking of 11th nationally and an income tax rate of 5.695 percent.
Delaware, ranked second by United Van Lines, drew a wave of retirees: more than half its newcomers were 65 or older, and 12 percent came from New York. The state charges no sales tax at all, though its top income rate hits 6.60 percent on earnings above $60,000.
No Income Tax States: Tennessee, Nevada and Beyond
Tennessee and Nevada both skip a state income tax entirely, a trait that appears to outweigh other costs for many movers. Tennessee's combined state and local sales tax rate reaches 9.55 percent, among the highest in the group, yet the state still ranks eighth on the Tax Foundation's competitiveness index. Nevada, ranked 17th on that same index, has become a magnet for retirees settling in the Las Vegas area, helped by a state sales tax of 6.85 percent before local additions.
Montana takes a different path. It has no general sales tax, but Fidelity Investments noted in December 2024 that the state carries some of the country's highest personal income tax rates. Even so, Montana still ranks fifth overall on tax competitiveness, with its top marginal rate set at 5.9 percent for 2025.
Flat Taxes and Falling Rates in the South
Arizona now offers a flat income tax rate of just 2.5 percent, a change that took effect for tax year 2024 and helped push the state to ninth place on the migration list. Its sales tax runs higher at 5.6 percent before local additions, and cities can tack on more.
Arkansas cut its top individual income tax rate to 3.9 percent from 4.4 percent, and its housing remains among the cheapest on the list: a median listing price of $285,000 and an average monthly payment near $1,494, according to Realtor.com. Its average home price for 2024 came in at $209,250, the lowest of any state in the top ten.
Alabama, ranked seventh on the Tax Foundation list and sixth by United Van Lines, pairs low property taxes with a combined sales tax rate of 9.29 percent. Its top income tax rate of 5 percent applies to taxable income above $3,000 for single filers and $6,000 for joint filers.
What This Migration Pattern Means for Household Budgets
Anyone weighing a move should look past the income tax headline rate alone. Tennessee has no income tax but a steep sales tax. Delaware skips sales tax but taxes income more heavily. Montana has neither a sales tax burden nor a friendly income tax rate, which is why its overall competitiveness ranking matters as much as any single figure. Comparing property taxes, average home prices, and combined state and local sales tax rates together gives a fuller picture than any one number can offer on its own.