Thinking about moving? Not just for better weather or a fresh start—but to stop bleeding money on dumb expenses? Same. Because let’s be real: living in certain states feels like paying a luxury tax on simply existing. From invisible nibbles out of your paycheck to that random tax on your Netflix subscription, some places will drain your bank account in ways that are as sneaky as they are absurd.
But here’s the plot twist—move to the right state, and entire bills just vanish. Like, “poof, never existed” levels of vanish. We’re talking zero income tax, no grocery tax, cheap car insurance, and more. You don’t even have to live in a remote log cabin or barter with squirrels. Just pick the right ZIP code, and suddenly, life gets cheaper without you having to give up avocado toast or internet access.
Here are 13 household expenses that can straight-up disappear depending on where you move. Let’s take a state-by-state scalpel to your budget, shall we?
1. State Income Tax – Goodbye, Paycheck Parasite
Let’s start with the big one: state income tax. If you’re in California, New York, or Illinois, you’re likely handing over a chunk of your paycheck to the state just for the privilege of existing. But in states like Florida, Texas, and Nevada, that line item? Poof. Gone. According to the Tax Foundation, eight states—Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming—levy no individual income tax. New Hampshire joined the club in 2025 by repealing its tax on interest and dividends.
If you’ve ever opened your pay stub and muttered something unprintable at the deductions column, this one’s for you. It’s not just about the extra cash—it’s about the psychological win of keeping what you earn. And if you’re self-employed? It’s practically a spiritual experience.
Imagine keeping every dollar you earn without the state dipping its fingers into your wallet. That’s not just a tax break; it’s a lifestyle upgrade. Whether you’re a freelancer, a remote worker, or just someone who likes their money where they can see it, moving to a no-income-tax state can feel like getting a raise without asking your boss. Now imagine reinvesting those extra thousands into your own projects, savings, or even—gasp—fun. Because in these states, Uncle Sam’s less greedy cousin isn’t hovering over your shoulder.
2. Property Taxes – The Silent Budget Killer
Homeownership comes with its own set of joys and pains, and property taxes often fall into the latter category. But not all states treat homeowners equally. According to SmartAsset, Hawaii boasts the lowest property tax rate in the U.S. at just 0.27%. That’s a stark contrast to states like New Jersey, where rates can soar above 2%.
That 2% difference might not sound massive until you realize it can mean thousands of dollars a year. It’s the kind of money that could go toward remodeling your kitchen—or, frankly, just not stressing out every April. In low-tax states, you actually get to enjoy your home without it financially biting you every 12 months.
So, if you’re tired of your annual property tax bill making you question your life choices, consider relocating to a state where the government doesn’t treat your home like a cash cow. Lower property taxes mean more money in your pocket for renovations, vacations, or, you know, living your life. That dream of owning a house and affording groceries? Suddenly much less absurd.
3. Utility Bills – Because Climate Matters
Utilities can be a sneaky drain on your finances, especially in states with extreme temperatures. But some states offer a more temperate climate and, consequently, lower utility costs. According to AARP, Utah residents pay an average of $205.28 per month on utilities, the lowest in the nation.
That’s right—when you’re not running the AC like it’s life support or cranking the heat like you’re thawing a woolly mammoth, you pay a lot less. States with milder climates don’t just mean more pleasant weather—they mean less punishment for simply existing indoors. You get comfort and cost savings? Go figure.
Living in a state with mild weather not only makes for comfortable living but also means your heating and cooling systems aren’t working overtime. That translates to lower energy bills and a happier bank account. So, if you’re looking to cut down on monthly expenses, consider a move to a state where the climate—and your wallet—are more forgiving. Your HVAC system deserves a break, and frankly, so do you.
4. Car Insurance – The Unseen Monthly Drain
Car insurance is one of those expenses that can vary wildly depending on where you live. In some states, premiums are sky-high due to factors like traffic congestion and accident rates. But in others, you can find much more affordable rates. According to U.S. News & World Report, Maine has the lowest average annual car insurance premium at $1,080.
That’s not pocket change—especially if you’re already juggling gas, maintenance, and that suspicious new rattle coming from under the hood. In a low-premium state, it feels like you’re actually being rewarded for driving safely rather than just funding someone else’s reckless habits. And the kicker? Fewer urban pileups usually mean fewer claims, which keeps your rate low for the long haul.
So, if you’re tired of your car insurance bill making you feel like you’re paying for a luxury vehicle when you’re driving a used sedan, it might be time to consider a move. Lower premiums mean more money for road trips, upgrades, or simply padding your savings account. Bonus: you can finally spring for that GPS that doesn’t yell at you in German.
5. Sales Tax – The Sneaky Spending Surcharge
Sales tax is the silent partner in every purchase you make, quietly inflating the cost of goods and services. But some states have taken a different approach. According to Investopedia, states like Delaware, Montana, New Hampshire, and Oregon have no state sales tax.
And if you’re someone who loves a good splurge, that’s basically like a built-in discount. Buying a $2,000 laptop without paying an extra $160 in tax? That’s not nothing. Suddenly, your online cart feels a lot less guilt-inducing.
Imagine buying a big-ticket item like a new TV or laptop and not having to calculate an extra percentage on top. Over time, those savings add up, making these states attractive for both residents and shoppers. So, if you’re looking to stretch your dollars further, consider a move to a state where your purchases aren’t taxed to the hilt. Because let’s be honest—retail therapy shouldn’t come with government-added guilt.
6. Grocery Taxes – Because Eating Shouldn’t Be Taxing
Food is a basic necessity, but in some states, it’s also a taxable commodity. However, several states have eliminated or significantly reduced sales tax on groceries, recognizing that taxing food disproportionately affects lower-income residents.
States like Oregon and Montana not only have no sales tax but also ensure that groceries remain untaxed. This policy means that your grocery bill is just that—the cost of the food you buy, without any added tax. Over time, this can lead to substantial savings, especially for families or those on fixed incomes. That’s especially helpful in an era of $6 eggs and avocados priced like luxury goods. Plus, not taxing groceries simplifies checkout—what you see is what you pay, no math degree required. For people on SNAP or tight food budgets, these tax policies can be the difference between buying fresh produce or skipping it. And honestly, food shouldn’t come with a surcharge for simply trying to survive.
7. Clothing Taxes – Dress for Less
In some states, clothing is considered a taxable luxury, while in others, it’s deemed a necessity and exempt from sales tax. For fashionistas and families alike, this distinction can make a significant difference in annual spending.
States like Pennsylvania and Minnesota exempt most clothing from sales tax, allowing residents to shop without the added cost. Whether you’re updating your wardrobe or shopping for back-to-school essentials, living in a state that doesn’t tax clothing can keep more money in your pocket. This is particularly huge for parents—imagine the savings when shopping for three kids before school starts. Even those trendy impulse buys don’t hit quite as hard when there’s no extra tax tacked on. It’s also a subtle economic equalizer—people can dress well and appropriately without a government-imposed fashion penalty. In short, in tax-free clothing states, your style choices stay between you and your closet.
8. Prescription Taxes – Healthier Wallets
Healthcare costs are a major concern for many, and taxes on prescription medications can add to the burden. Fortunately, most states recognize the importance of affordable healthcare and exempt prescription drugs from sales tax.
However, the specifics can vary, so it’s essential to check the tax policies of your state. Living in a state that exempts prescription medications from sales tax can lead to significant savings over time, especially for those with chronic conditions requiring regular medication. That monthly refill? It’s a lot easier to manage when the price isn’t padded with tax. Seniors and people with ongoing medical needs especially benefit from this financial relief. Even over-the-counter meds can sneak in extra costs depending on where you live. States that drop the tax are saying, in effect, “Hey, we won’t punish you for needing medicine”—which seems like the bare minimum, but here we are.
9. Social Security Taxes – Retire in Peace
For retirees, every dollar counts, and taxes on Social Security benefits can be a significant hit to fixed incomes. Thankfully, many states have chosen not to tax Social Security income, providing relief to seniors.
States like Florida, Texas, and Nevada not only have no state income tax but also don’t tax Social Security benefits. This policy ensures that retirees can enjoy their golden years without the state dipping into their retirement funds. If you’re living on a fixed income, the last thing you need is your benefits getting nickel-and-dimed. Avoiding that tax gives retirees the freedom to travel, spoil the grandkids, or just sleep peacefully knowing their check is their check. It’s the financial version of a rocking chair on a sunny porch—simple, reliable, and yours. Honestly, if you’ve paid into the system your whole life, it shouldn’t come with a receipt every month.
10. Estate Taxes – Leave a Legacy, Not a Tax Bill
Estate taxes can significantly reduce the inheritance left to loved ones. While the federal government imposes an estate tax on very large estates, some states have their own estate or inheritance taxes with lower thresholds.
However, many states have eliminated these taxes altogether. States like Florida and Texas have no estate or inheritance taxes, allowing residents to pass on their wealth without additional state-imposed costs. That means more of your life’s work actually reaches your family, not some bureaucracy. It’s especially important for small business owners or those with valuable property assets—why should heirs be forced to sell off the family farm just to pay the bill? In tax-free states, legacy-building doesn’t come with a fine print clause. Your estate should be a gift, not a liability.
11. Vehicle Taxes – Drive Without the Extra Fees
Purchasing a vehicle often comes with a slew of taxes and fees, including sales tax, registration fees, and personal property taxes. But some states offer a more wallet-friendly approach.
For instance, New Hampshire has no sales tax, which means buying a car there doesn’t include that extra percentage added to the purchase price. Additionally, states like Oregon have no sales tax and lower registration fees, making vehicle ownership more affordable. Over a car’s lifetime, that can amount to thousands saved in upfront costs and annual fees. If you’re already navigating gas prices, maintenance, and insurance, cutting out taxes is a breath of fresh (leather-scented) air. And for folks who buy or lease regularly, that adds up fast—your car might not be an investment, but your savings are. Plus, no surprise DMV fees? Yes, please.
12. Internet and Cable Taxes – Stream Without the Surcharge
In our digital age, internet and cable services are essential for work, education, and entertainment. However, some states impose taxes on these services, increasing monthly bills.
States like Oregon and Delaware have no sales tax, which extends to digital services, potentially lowering your monthly expenses. By choosing to live in a state with fewer taxes on digital services, you can enjoy your favorite shows and stay connected without the added costs. That’s a win whether you’re working remotely, binge-watching documentaries, or just trying to FaceTime your mom without buffering. It’s also a big break for families juggling multiple screens and subscriptions. Lower taxes = smoother streaming = less yelling at the Roku. The internet is already annoying enough without a tax piled on top.
13. Phone Taxes – Talk is Cheap (or At Least Cheaper)
Telecommunication taxes can add a surprising amount to your monthly phone bill. These taxes vary widely by state and can include charges for emergency services, infrastructure, and more.
States like Idaho and Nevada have some of the lowest combined federal, state, and local taxes on wireless services. By relocating to a state with lower telecommunication taxes, you can reduce your monthly expenses without changing your usage habits. In fact, some states charge three to four times what others do—just for the privilege of texting your group chat. Lower phone taxes might mean the difference between unlimited data and throttled regret. For businesses or families with multiple lines, those savings multiply fast. So if you’re sick of getting taxed for every “K.” you send, maybe it’s time to make the move.
This article is for informational purposes only and should not be construed as financial advice. Consult a financial professional before making investment or other financial decisions. The author and publisher make no warranties of any kind.
