From a financial standpoint, a lot goes into choosing a place to live, from home prices and living costs to how much you can expect to pay in taxes.
Finding a city with a low overall tax burden can save you thousands of dollars a year versus living where taxes are high — as long as you’re not overpaying in other areas.
We asked ChatGPT for the best places to live if you want to pay less in taxes.
Here are the six top U.S. cities with the lowest tax burdens, according to its analysis.
1. Cheyenne, Wyoming
- Often ranks No. 1 for lowest total tax burden among U.S. cities.
- No state or city income tax, and relatively low property and sales taxes.
- Cost-of-living score: 100.3 (vs. average of 100.0)
- Tradeoff: Slightly higher cost of living and housing prices than the rest of the country.
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2. Anchorage, Alaska
- No state income tax and no sales tax, although there are some local variations.
- Property taxes are modest compared with most U.S. cities.
- Cost-of-living score: 115.3
- Tradeoff: A remote location with a fairly high cost-of-living score.
3. Houston
- Texas has no state income tax.
- Overall tax burden can be low for many households.
- Cost-of-living score: 96.9
- Tradeoff: Texas ranks among the most expensive states in the country for property taxes and also has higher-than-average sales taxes.
4. Fargo, North Dakota
- Very low overall tax rate due to the absence of state/local income tax.
- Lower-than-average cost of living.
- Cost-of-living score: 90.6
- Tradeoff: Fargo is in a remote location without a major airport, and North Dakota’s property taxes and sales taxes are slightly higher than those of most states.
5. Jacksonville, Florida
- Florida has no income tax, and Jacksonville does not add a city income tax.
- Sales taxes are moderate, and the overall tax burden is lower than in many cities.
- Cost-of-living score: 95.7
- Tradeoff: Florida residents pay very high homeowners insurance rates because of the state’s weather risks.
6. Memphis, Tennessee
- Tennessee does not tax wages (income tax on interest/dividends has been phased out).
- Property taxes in Tennessee are low compared with the rest of the country.
- Cost-of-living score: 85.8
- Tradeoff: Tennessee ranks second in the country for having the highest combined state/local sales tax rate.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT for the Best Places To Live If I Want To Pay Less Taxes
