Residance: Track Tax Residency

Choosing where to establish tax residency is no longer a lifestyle decision alone. For high net worth individuals and families, it's an operational one — shaped by state tax structures, enforcement posture, and how clearly residency can be established and defended.

While no single factor determines residency risk, state-level tax burden remains a primary driver. As of 2026, a small group of states continue to stand out for their simplicity, predictability, and overall tax friendliness.

Below are five states that consistently rank at the top for tax residency optimization — assuming residency rules are followed carefully and presence is well-managed.

1. Wyoming

Wyoming remains one of the cleanest residency profiles in the U.S.

There is no personal income tax, no corporate income tax, and property taxes are among the lowest nationwide. The state sales tax is modest and straightforward, and Wyoming's overall tax code is simple and stable.

For individuals with significant earned or investment income, Wyoming offers clarity with minimal moving parts. The tradeoff is lifestyle fit — but from a tax perspective, Wyoming continues to be difficult to beat.

2. South Dakota

South Dakota combines tax simplicity with unusually clear residency mechanics.

Like Wyoming, it has no personal income tax and no corporate income tax. Property taxes are low by national standards, and the sales tax regime is predictable.

What makes South Dakota particularly notable is how straightforward it is to establish domicile — which is why it often appears in discussions among full-time travelers and globally mobile individuals. That simplicity can be an advantage, provided presence and documentation are handled carefully.

3. New Hampshire

New Hampshire occupies a middle ground that appeals to certain profiles.

The state does not tax earned wages and has no general sales tax. It does tax interest and dividends, though that tax is in the process of being phased out. Property taxes are higher than some peers, but the overall tax environment remains competitive.

For professionals, remote workers, and individuals seeking Northeast proximity without high-income-tax exposure, New Hampshire continues to be a viable option — particularly as its tax structure evolves.

4. Alaska

Alaska is often overlooked, but its tax profile is unusually favorable.

There is no state income tax and no statewide sales tax, with relatively low property taxes. In addition, residents receive annual dividends tied to state oil revenues.

The practical challenges are obvious: geography, climate, and cost in certain areas. But for those who can establish a genuine presence, Alaska remains one of the lowest-tax residency options in the country.

5. Florida

Florida remains the most popular choice — and for good reason.

There is no personal income tax, no estate or inheritance tax, and property taxes are moderate. Residency is relatively easy to establish, and the state has a long track record of defending its tax structure.

Florida's popularity cuts both ways. Its attractiveness has made it a focal point for scrutiny from higher-tax states, which means residency must be clean, well-documented, and defensible. When done correctly, however, Florida remains one of the strongest options for long-term planning.

States That Narrowly Missed the List

Texas, Tennessee, and Nevada all remain strong contenders. They share the absence of personal income tax and generally favorable business climates, but tend to rank slightly lower when property taxes, sales taxes, or broader competitiveness are considered together.

For many individuals, these states may still be the right answer depending on lifestyle, business activity, and existing ties.

Optimization Requires More Than a Destination

Choosing a low-tax state is only part of the equation.

Residency is ultimately determined by physical presence, consistency, intent, and documentation — not just by where you would like to be taxed. High-tax states increasingly challenge exits, relying on detailed reconstructions of time and behavior.

That's why optimization today is less about picking the “best” state and more about managing exposure across all the states you touch.

Accurate day counts, forward planning, and clear records are foundational. Without them, even the most favorable tax regime can become difficult to rely on.

A Final Note

This is not advice, and there is no universal answer. Federal taxes apply regardless of state, and residency rules must be followed precisely to avoid audits or disputes.

But for individuals managing complex, mobile lives in 2026, these five states continue to offer the clearest frameworks — provided residency is established intentionally and maintained carefully.

Knowing where your days count is the starting point.

Staying below the line is the goal.