One of the biggest reasons families relocate is simple: they want to keep more of what they earn. In 2026, a growing number of states are making that easier, with a wave of income-tax cuts — and several states now charting a path to eliminate the income tax altogether.
The states cutting in 2026
South Carolina passed the most sweeping reform of the year, consolidating its brackets and setting a long-term course toward eliminating its income tax entirely. In doing so it joins Oklahoma, Mississippi, and West Virginia, which have all enacted measures designed to phase their income taxes down to zero over time. Arkansas cut its top rate to 3.7%, and Georgia, Iowa, and Arizona are completing transitions to simple flat taxes.
The no-income-tax club is still the gold standard
Nine states already levy no personal income tax at all — including movers’ favorites Texas, Florida, and Tennessee. For a family earning six figures, that difference alone can be worth many thousands of dollars a year compared with a high-tax origin state like California, New York, or Illinois.
Why it matters for your move
Tax policy is rarely the only reason to move, but it is often the tipping point. A lower rate compounds year after year — funding a bigger home, a college account, or simply more breathing room. And with so many states now cutting, the gap between where you are and where you could be is widening.
Run your own numbers
Every family’s math is different, which is why we built a free tool to make it concrete. Our State Tax Savings Calculator compares income, property, and sales taxes between your current state and your destination so you can see the real annual difference. When the number surprises you — and it usually does — get started free and we will connect you with a vetted agent in your top-choice state.