Top 5 U.S. States for Tax Planning in 2025–2026

These rankings are based on a combination of:

 

• Low or no income taxes
• Favorable trust and estate laws
• Business-friendly climate
• Asset protection
• Overall tax burden

 

1. Wyoming

Why it’s #1:

 

• No state income tax
• No capital gains or estate tax
• Low property taxes
• Strong trust laws and asset protection
• Business and LLC-friendly with privacy protections

 

Best for: High-net-worth individuals, retirees, family offices, asset protection planning

2. South Dakota

Why it's great:

 

• No income tax
• Top-rated trust laws (dynasty trusts, directed trusts, privacy)
• No estate/inheritance tax
• Business-friendly and creditor protection

 

Best for: Estate planning, trust formation, multi-generational wealth management

3. Florida

Why it ranks high:

 

• No state income tax
• No estate or inheritance tax
• Homestead exemption offers asset protection on primary residence
• Popular for retirees and business owners relocating

 

Best for: Retirees, remote workers, high-income individuals avoiding income tax

4. Nevada

Tax perks:

 

• No income tax
• No estate or inheritance tax
• Strong privacy laws for LLCs and trusts
• Favorable business incorporation environment

 

Best for: Entrepreneurs, asset protection, real estate investors

5. Texas

Why it's tax-friendly:

 

• No personal income tax
• No estate tax
• Strong economy and business climate
• Homestead protections in bankruptcy and lawsuits

 

Best for: Business owners, families, real estate-rich households