Best States To Live On FIRE

Picking the best state is difficult. Most people just pick the state they grew up in, worked in, or have friends and family in. That choice can have a huge impact on how much you pay in taxes, and on your FIRE-minded financial future. It is worth thinking mindfully about which state to live in.

2026 estimate. State income tax only. Local income taxes, property taxes, sales taxes, retirement account rules, AMT-style quirks, nonresident sourcing, and unusual credits are excluded.

Income

Filing status W-2 wages Other earned income Rental property income Qualified dividends Long-term stock sales gain Vermont stock sale treatment

Map

States Ranked By Tax

* Tax-change watch as of May 10, 2026: active or recently enacted high-income, wealth, or investment-tax changes. Hover the asterisk beside a state name for details. Proposals are not included in the estimate unless the tooltip says they are.

Federal Tax

Federal tax is the baseline you cannot dodge by choosing a different state: $0, or 0.00% of the income above.

Your next ordinary dollar is in the 0% federal bracket. Rental property income is modeled at ordinary rates. Your qualified dividends and long-term stock gains stack on top of ordinary income and currently land in the 0% long-term capital gains bracket.

The 2026 federal standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.

U.S. citizens and resident aliens generally remain taxable on worldwide income even while living overseas. Foreign earned income exclusions and foreign tax credits can reduce the bill, but leaving the country does not make the federal layer disappear.

How Income Is Taxed

Loading rate sources.