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Best States for Real Estate Investors

Compare rents, home prices, rental property taxes and living costs before choosing where to buy. Then check the numbers for the actual property.

Leading states in this comparison · Published 2026 methodology

  1. #1 West Virginia8.0 / 10
  2. #2 Louisiana7.9 / 10
  3. #3 Oklahoma7.9 / 10
See all 50 states and the scored factors ↓

By Bryan Martin, CPA, Managing Partner and Founder of Taxstra · Last reviewed September 12, 2026.

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The published 50-state ranking

Compare rents, home prices, rental property taxes and living costs before choosing where to buy. Then check the numbers for the actual property.

Higher scores mean a stronger result on the factors this guide measures. They do not guarantee a better fit for your household or investment. Ties stay tied, and missing data is clearly marked.

Taxstra’s published 2026 ranking. One methodology, applied consistently to every state. 90% financial evidence and 10% WalletHub Quality of Life. See the factors and scoring rules.

Pick a state. See how it fits.

Explore grades out of 10, category ranks and the tradeoffs behind them. Each state uses the same published factors and weights.

The map loads when the page opens. All 50 states are available in the selector and table.

1 / 1010 / 10

Gray = unavailable or provisional; no comparable rank. Alaska and Hawaii shown as insets.

Boundaries: U.S. Census Bureau / US Atlas.

Why Illinois scores this way

Illinois ranks #15 of 50, with 6.9 / 10. The category tiles show its strengths and tradeoffs.

A higher category score means a stronger result on that measure. Check the “Good fit for” and “Less suited to” notes against your own priorities.

Full state analysis Grading methodology
Taxstra Tax and Accounting Services2026 state guide

Real estate investors

Illinois

Taxstra’s state comparison

Illinois outline
6.9/ 10

Overall score#15 in the comparison

90% cost and financial score (6.6/10) · 10% quality of life (9.3/10)

How to read this score

Uses the equal-weight mean of two standardized apartment-tax samples, one urban and one rural, not a statewide property-tax rate. Rent/value compares different Census housing samples. No property yield, financing return, insurance quote, legal-policy score or usable deduction is inferred.

Rent compared with home prices

#4 of 50 · 45% weight
8.3/10

5.65%. Higher rents relative to home prices score better; this is not a forecast for a particular rental.

Rental property taxes

#41 of 50 · 27% weight
5.0/10

$12,038 in Chicago + Galena; taxes on the study’s example apartment building, not a quote for your property.

Everyday living costs

#33 of 50 · 18% weight
5.1/10

$99,958. What a $100,000 national spending budget would cost here; lower costs score better.

Quality of life

#5 of 50 · WalletHub category · 10% weight
9.3/10

WalletHub: #5 for Quality of Life, #18 overall; this score uses the category.

Homeowner property taxes

#45 of 50 · Not in overall score
5.2/10

$5,399 typical annual homeowner tax bill; check the specific property before budgeting.

Home insurance costs

#20 of 50 · Not in overall score
7.6/10

$1,480 average annual homeowner premium; rental and short-term rental coverage can cost differently.

Good fit for

  • Investors who price local taxes before making the offer

Less suited to

  • Underwriting from acquisition price and gross rent alone

Illinois: full analysis and evidenceRead the state-specific explanation and supporting sources.

Illinois

Back to comparison ↑
Median home $280,700Monthly gross rent $1,322HO-3 premium, 2023 $1,480

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $9,053 in Chicago, versus $15,023 in its rural sample of Galena. Their equal-weight benchmark is $12,038. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition. The source also reports Aurora at $17,724, kept separate rather than replacing the largest-city sample.

Illinois combines a comparatively moderate home-value base with a relatively high homeowner property-tax observation. The rent-to-value portion may look appealing while the actual carrying bill consumes a meaningful part of collected rent.

Compare the rental assessment and local levies for the exact parcel before choosing between a Chicago-area property and a downstate rental. Review the state depreciation adjustment independently of the federal deduction, and model the owner’s residence return separately for an out-of-state investment.

Read the Illinois retirement-tax details

Cite the state. Include the method.

Use the state, guide title, published methodology and source years when citing a score. State selection changes the card, not the ranking methodology.

Media and interview inquiries · Source data · Taxstra methodology

Property taxes, local rules and due diligenceCheck the property behind the state score, with evidence for your selected state.

Check the property behind the state score

A state comparison helps build a shortlist. The purchase decision needs a named jurisdiction, the correct rental tax classification and an insurance quote for the intended use.

Illinois: the same apartment, two local tax bills

The 2025 comparison holds land and building value at $600,000, plus $30,000 of fixtures. These are the study’s named urban and rural examples, not statewide tax rates, current parcel quotes or taxes on your personal home.

Largest-city sampleChicago
$9,0531.437% of total property value
Rural sampleGalena
$15,0232.385% of total property value

Equal urban/rural benchmark: $12,038. Taxstra gives each of these two bills a 50% share. This avoids letting one city alone represent the comparison; it remains a two-location benchmark, not a statewide average or an STR tax assessment.

The study also reports Aurora: $17,724 (2.813%) because the largest city’s tax system differs from much of the state. These examples remain separate.

Lincoln Institute / Minnesota Center for Fiscal Excellence: apartment property taxes · Taxes paid 2025; published April 2026; verified 2026-09-12. Appendix tables 5a and 5c, pages 98–99 and 102–103.

Get a rental-use insurance quote

Ask for coverage of the actual rental use, replacement cost, liability, loss of rents, deductibles and relevant flood or wind exposure. The NAIC explains that ordinary homeowners coverage can exclude home-sharing risks. Compare quotes on the same coverage terms; a statewide homeowners premium is not a landlord or STR premium.

NAIC: insurance coverage for home-sharing rentals · Guidance published 2020, checked 2026-09-12. FEMA / NFIP: flood coverage and exclusions identifies NFIP exclusions, including business interruption.

Illinois: landlord operating requirements

Selected primary-authority facts, separate from the financial ranking. The guide does not award points for tenant law or estimate days to possession.

Rent preemption does not remove lease obligations

Illinois prohibits local rent-control ordinances for private property, subject to the statute’s government property-interest exception. Separately, beginning January 1, 2026, landlords must attach the Safe Homes rights summary as the first page of written residential leases and renewals and obtain the required acknowledgments.

Review the actual municipality’s tenancy requirements and update lease packets. The Chicago, Galena and Aurora tax examples describe different places; neither rent preemption nor a low city sample makes the entire state inexpensive to operate in.

Illinois General Assembly: 50 ILCS 825/5 rent-control preemption · Illinois Department of Human Rights: Safe Homes Act lease summary · Checked 2026-09-12.

Full ranking table · 50 of 50 statesCompare every state’s rank, housing costs, property taxes and tax treatment.

50 of 50 states

Real estate investors: economic observations and tax context
RankStateRental acquisition and apartment-tax gradeHome value
ACS 2024		Property-tax bill
ACS 2024 median		Price index
BEA 2024		Individual bonus treatment
1West Virginia8.0 / 10$170,800$88189.5West Virginia adopted the 2025 federal changes, so §168(k) and §168(n) flow through for 2026 to 2027.
2Louisiana7.9 / 10$223,200$1,18788.2Louisiana offers an optional state 100% expensing deduction for qualifying property; later federal depreciation on the same basis is added back.
3Oklahoma7.9 / 10$222,100$1,67287.8Oklahoma permits a state 100% expensing election for qualifying property; it is not simple federal bonus conformity.
4Alabama7.7 / 10$233,300$89088.8Follows the federal §168(k) and §168(n) deductions for 2026 to 2027.
5Arkansas7.6 / 10$215,600$1,11386.9Federal bonus depreciation is not adopted; use the Arkansas depreciation computation.
6Pennsylvania7.3 / 10$277,600$3,21497.6Pennsylvania personal income tax uses its own depreciation rules rather than the federal bonus amount.
7Iowa7.3 / 10$227,300$2,93787.8Iowa follows current federal depreciation, including §168(k) and §168(n), for 2026 to 2027.
8Kansas7.3 / 10$238,700$2,98390.1Current Kansas statutes recognize federal §168(k); a direct current official statement on §168(n) was not located.
9Mississippi7.2 / 10$186,500$1,22187.0Mississippi permits a state 100% first-year deduction for qualifying depreciable property; it is not simple federal bonus conformity.
10Kentucky7.2 / 10$226,000$1,61190.2Kentucky does not adopt the current federal bonus provisions; use Kentucky depreciation.
11North Carolina7.2 / 10$333,000$2,04494.3Add back 85% of the federal accelerated-depreciation amount, then deduct 20% of that addition in each of the next five years.
12Missouri7.2 / 10$254,400$2,02190.8Missouri follows current federal depreciation and does not require a bonus addback for current property.
13Ohio6.9 / 10$239,800$2,93792.8For §168(k), generally add back five-sixths and deduct one-fifth of that addback in each of the next five years. Payroll-growth and NOL exceptions can change the result; §168(n) generally follows federal law.
14Texas6.9 / 10$313,200$4,10897.1Texas does not impose a broad individual income tax.
15Illinois6.9 / 10$280,700$5,399100.0Reverse federal §168(k)/§168(n) amounts and compute the Illinois depreciation modification.
16Virginia6.8 / 10$403,500$2,872101.1Recompute Virginia depreciation as though the federal bonus provisions did not apply.
17Indiana6.7 / 10$243,500$1,79893.3Add back federal bonus depreciation and maintain Indiana basis for later depreciation or disposition.
18New Mexico6.7 / 10$279,900$1,77692.2Ordinary §168(k) bonus flows into individual income in 2026. The enacted 2027 depreciation reversal changes the corporate base, not the individual base.
19Georgia6.7 / 10$343,300$2,55496.3Use Georgia depreciation without federal §168(k) or §168(n).
20Tennessee6.7 / 10$332,600$1,48891.9Tennessee does not impose a broad individual income tax.
21Florida6.6 / 10$396,900$2,993103.4Florida does not impose a broad individual income tax.
22Nebraska6.5 / 10$263,100$3,73990.1Nebraska follows the current federal depreciation deduction for 2026 to 2027.
23Arizona6.4 / 10$426,000$1,828100.7Individuals retain the full federal §168(k) bonus amount for eligible new property in 2026; §168(n) is separately added back.
24North Dakota6.1 / 10$266,100$2,55089.0North Dakota follows the federal deductions through its current federal income starting point.
25Wisconsin6.1 / 10$294,700$3,68094.1Wisconsin does not adopt federal §168(k) or §168(n); compute Wisconsin depreciation separately.
26Nevada6.1 / 10$455,500$2,143100.0Nevada does not impose a broad individual income tax.
27Delaware6.0 / 10$371,600$1,75099.8Ordinary eligible 2026 property retains 20% bonus under the pre-OBBBA schedule; the rest follows regular depreciation.
28Minnesota5.9 / 10$344,600$3,50198.6For §168(k), add back 80% and deduct one-fifth of that addition in each of the next five years. Qualified production property under §168(n) is not added back.
29Colorado5.9 / 10$574,600$2,828103.1Colorado follows the federal deductions for §168(k) bonus and §168(n) qualified production property.
30Michigan5.8 / 10$254,200$2,98896.2For individuals and flow-through entities, Michigan retains the pre-OBBBA phaseout: 20% federal bonus in 2026 and 0% in 2027; §168(n) is disallowed.
31South Carolina5.8 / 10$299,500$1,33793.7Use South Carolina depreciation without federal §168(k) or §168(n).
32Idaho5.6 / 10$446,400$1,91295.5Add back the federal bonus difference in the first year; deduct later Idaho-versus-federal depreciation differences.
32Maine5.6 / 10$341,900$3,10397.1Add back the federal bonus amount and claim depreciation under Maine’s pro-forma computation.
34Wyoming5.6 / 10$339,500$1,94792.7Wyoming does not impose a broad individual income tax.
35Connecticut5.6 / 10$396,900$6,573103.6Add back 100% of federal bonus, then deduct 25% of the addition in each of the next four years.
36South Dakota5.5 / 10$289,600$2,94088.6South Dakota does not impose a broad individual income tax.
37Utah5.5 / 10$545,200$2,64898.9Utah starts with current federal adjusted gross income and does not enumerate a §168(k) or §168(n) reversal.
38Montana5.5 / 10$425,400$2,93994.6Montana begins with the current federal income base and has no current bonus-depreciation addback.
39Alaska5.4 / 10$376,500$3,976102.4Alaska does not impose a broad individual income tax.
40Washington5.1 / 10$602,200$4,729107.0Washington does not impose a broad individual income tax.
41Vermont5.1 / 10$352,800$5,02698.0Vermont disallows §168(k) and §168(n), then permits recovery under the non-bonus depreciation schedule.
42Maryland5.0 / 10$436,300$4,144105.0Generally decoupled from federal bonus; qualifying manufacturing property may receive different treatment.
43Massachusetts4.9 / 10$607,400$6,080105.8§168(k) remains disallowed. §168(n) is disallowed for 2026 and follows federal law beginning in 2027.
44New Jersey4.7 / 10$496,000$9,358108.8New Jersey does not follow the federal bonus deduction; calculate New Jersey depreciation and basis separately.
45New Hampshire4.7 / 10$458,800$6,707104.2New Hampshire does not impose a broad individual income tax.
46Oregon4.6 / 10$497,500$3,895103.4Oregon disallows federal bonus depreciation for 2026 to 2027; implementing recovery instructions are pending.
47New York4.5 / 10$449,800$6,542107.9Reverse federal §168(k) and §168(n) deductions and claim New York depreciation.
48California4.4 / 10$759,500$5,369110.7California does not conform to federal bonus depreciation; compute California depreciation separately.
49Rhode Island4.1 / 10$455,700$4,886102.3Compute depreciation and basis as though federal bonus depreciation had not been enacted.
50Hawaii3.6 / 10$875,900$2,385110.0Hawaii does not allow the federal bonus deduction; compute Hawaii depreciation separately.
What changes the comparisonThe tax, legal and financial tradeoffs behind the ranking.

Compare rental acquisitions using rent-to-value context, standardized apartment property taxes and regional costs, with a fixed quality-of-life category weight. Taxstra uses the same apartment value in two named jurisdictions in every state, averaging urban and rural samples equally. Then test the actual property’s permission, insurance, income and expenses before treating any state grade as an investment decision.

What determines this guide’s grade

50% rent-to-value context, 30% equal-weight urban/rural apartment taxes, 20% regional spending basket within the financial share. The published ranking gives financial evidence 90% and the named quality-of-life category 10%, consistently across all states. These are Taxstra’s editorial weights, not estimated predictors of future results. Uses the equal-weight mean of two standardized apartment-tax samples, one urban and one rural, not a statewide property-tax rate. Rent/value compares different Census housing samples. No property yield, financing return, insurance quote, legal-policy score or usable deduction is inferred.

Start with the property, then reconcile two tax returns

An investor can live in one state and own a rental in another. The property address drives the local assessment, permitted use and operating environment. The owner’s residence can create another return with different depreciation and credit calculations. Record property state, owner residence, entity classification and management location as separate inputs. An LLC mailing address does not answer those questions.

A controlled purchase comparison

The library’s $1 million, debt-free long-term example starts with $90,000 in rent and $30,000 in expenses before property taxes, insurance and depreciation. That leaves $60,000 before the omitted costs. If one hypothetical property has $12,000 of property tax and $6,000 of rental insurance, the remainder is $42,000; a second with $5,000 and $3,000 leaves $52,000. These invented inputs explain the arithmetic, not any state’s expected return. Financing, capital expenditure, vacancy and resale assumptions still need a consistent treatment.

A seller’s tax bill is not the buyer’s rental assessment

The owner-occupied ACS tax bill reflects that housing stock and its exemptions. Alabama classifies owner-occupied residential property differently from the general property class; Michigan can uncap taxable value after a transfer; Indiana’s caps distinguish homesteads from other residential property. Ask the assessor for a purchase-and-rental estimate rather than increasing the seller’s bill by a national inflation guess.

Insurance belongs to the address and use

Request an insurance quotation that discloses tenant occupancy, building replacement cost, vacancy, deductibles, liability, roof condition and any short-term use. Investigate flood, wind, wildfire, hail and winter hazards at the location. FEMA’s risk information screens geography; it does not price an individual building. The historical HO-3 observation elsewhere in the library covers owner-occupied homes and receives no weight in these property scores.

Depreciation is a schedule, not rent

IRS guidance restores 100% bonus for eligible property acquired and placed in service after January 19, 2025, subject to the applicable rules. Land is not depreciable, and an ordinary residential building is not made fully bonus-eligible simply because it is rented. Separate eligible components, state adjustments and loss limitations. Current deductions may move taxes between years, and disposition can change the result.

When livability matters to an investor

Quality of life describes the owner’s personal preferences, while an investment needs tenant demand and a viable rent roll. The published financial weights stay fixed across states. For a remote purchase, use the named property factors and local evidence to assess the building separately from where you want to live.

Put the numbers in contextA worked example with explicit assumptions.

The controlled $1 million long-term rental generates $90,000 of rent and has $30,000 of expenses before property tax, insurance and depreciation. That leaves $60,000 at that stage. A $10,000 property-tax bill and $5,000 insurance premium would reduce it to $45,000 before depreciation, financing and income tax. These are scenario inputs, not statewide forecasts.

Illustration only. These assumptions describe the example, not an expected client result.

Every state, explainedBrowse all 50 state chapters, with detailed analysis and linked evidence.
AlabamaRead state analysis

Alabama

Back to comparison ↑
Median home $233,300Monthly gross rent $1,077HO-3 premium, 2023 $1,906

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $6,417 in Huntsville, versus $5,722 in its rural sample of Monroeville. Their equal-weight benchmark is $6,069.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Alabama’s low reported home values and general prices support its screening result, but the owner-occupied tax figure is especially easy to misuse. The revenue department places qualifying owner-occupied homes in a 10% assessment class and general Class II property at 20%; confirm the rental’s classification before estimating its bill.

Compare a Birmingham or Huntsville annual lease with a Gulf Coast vacation purchase as separate businesses. The same state deduction cannot compensate for a purchase price or seasonal cost structure that the actual rent roll does not support.

Read the Alabama retirement-tax details
AlaskaRead state analysis

Alaska

Back to comparison ↑
Median home $376,500Monthly gross rent $1,444HO-3 premium, 2023 $1,216

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $8,495 in Anchorage, versus $6,433 in its rural sample of Ketchikan. Their equal-weight benchmark is $7,464. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Alaska’s housing and general-price observations do not give it the broad affordability advantage sometimes assumed from the absence of individual income tax. Separate the price paid for an Anchorage rental from a seasonal or remote property that requires a different service network.

A maintenance estimate should identify travel, freight, heating and the availability of someone who can reach the property during a disruption. Those costs are absent from the state grade, so operational access can matter more than a small movement in the statistical score.

Source qualification: Depreciation: Section 168(n) production-property treatment and special industries are outside the reviewed ordinary-equipment scenario.

Read the Alaska retirement-tax details
ArizonaRead state analysis

Arizona

Back to comparison ↑
Median home $426,000Monthly gross rent $1,672HO-3 premium, 2023 $1,194

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $7,040 in Phoenix, versus $4,430 in its rural sample of Safford. Their equal-weight benchmark is $5,735. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Arizona’s rent observation is relatively high, but so is its home-value denominator; higher advertised monthly rents therefore do not automatically produce a stronger rent-to-value result. Compare the purchase basis and recurring charges for the same neighborhood and property type.

A Phoenix-area annual rental and a northern Arizona vacation property need separate cooling, access and management assumptions. Arizona’s canonical depreciation research requires a separate state computation, so a federal cost-segregation deduction should not be copied directly into projected Arizona taxable income.

Read the Arizona retirement-tax details
ArkansasRead state analysis

Arkansas

Back to comparison ↑
Median home $215,600Monthly gross rent $982HO-3 premium, 2023 $1,870

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $8,572 in Little Rock, versus $5,167 in its rural sample of Pocahontas. Their equal-weight benchmark is $6,869.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Arkansas combines a low observed home-value base with low general prices, which makes the financial screen worth investigating for smaller acquisition budgets. The same arithmetic can flatter an inexpensive property that needs major work; use an inspection and comparable signed leases before treating the ratio as income potential.

Compare northwest Arkansas, Little Rock and an Ozarks recreation property independently. The state requires its own depreciation computation in the canonical research, so track the state basis alongside the federal schedule rather than budgeting the federal deduction twice.

Read the Arkansas retirement-tax details
CaliforniaRead state analysis

California

Back to comparison ↑
Median home $759,500Monthly gross rent $2,104HO-3 premium, 2023 $1,655

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $7,480 in Los Angeles, versus $6,683 in its rural sample of Yreka. Their equal-weight benchmark is $7,081.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

California’s high home-value denominator and above-national general prices weigh on the rental screen even where nominal rents are high. A weak statewide ratio does not decide the merits of a particular acquisition, but it makes the purchase basis and debt assumptions central.

The FTB expressly identifies nonconformity to federal bonus depreciation. Keep California basis and depreciation schedules through sale, and reconcile the resident-state return if the owner lives elsewhere. Neither appreciation nor a future refinance should be assumed to make a current operating deficit disappear.

Read the California retirement-tax details
ColoradoRead state analysis

Colorado

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Median home $574,600Monthly gross rent $1,822HO-3 premium, 2023 $2,492

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $2,892 in Denver, versus $3,441 in its rural sample of Walsenburg. Their equal-weight benchmark is $3,166.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Colorado’s high home-value observation limits the rent-to-value screen despite relatively high rents. Compare the amount of capital tied up in a Front Range property with the same property’s collected rent, and distinguish a resort purchase whose price includes personal-use appeal.

A mountain rental also needs access, snow service and property-association costs that BEA general prices cannot price. Colorado’s canonical tracker records federal depreciation conformity, but the deduction’s actual use still depends on the taxpayer and activity rather than the purchase location alone.

Read the Colorado retirement-tax details
ConnecticutRead state analysis

Connecticut

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Median home $396,900Monthly gross rent $1,550HO-3 premium, 2023 $2,036

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $10,272 in Bridgeport, versus $8,820 in its rural sample of Litchfield. Their equal-weight benchmark is $9,546. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Connecticut’s homeowner tax observation is high enough to demand an address-level comparison early in underwriting. The rent-to-value and price screen can hide how two towns with similar houses create different carrying bills.

For federal bonus used by an individual, Connecticut’s published recovery mechanism reverses the deduction and then allows quarters of the addition in the next four years. That timing differs from receiving the entire state benefit immediately; include it only after confirming the taxpayer’s usable income and current instructions.

Read the Connecticut retirement-tax details
DelawareRead state analysis

Delaware

Back to comparison ↑
Median home $371,600Monthly gross rent $1,530HO-3 premium, 2023 $1,196

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $11,515 in Wilmington, versus $3,218 in its rural sample of Georgetown. Their equal-weight benchmark is $7,366.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Delaware’s homeowner tax observation is relatively low, but its house values and general prices do not match the cheapest acquisition markets in the library. Compare a Wilmington-area long-term investment with a coastal purchase using their own rent and price evidence.

The canonical bonus tracker records enacted decoupling with recovery implementation still unresolved. Do not turn that pending detail into either a full immediate state deduction or permanent loss of depreciation. Keep the unavailable schedule visible in any projected after-tax return.

Read the Delaware retirement-tax details
FloridaRead state analysis

Florida

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Median home $396,900Monthly gross rent $1,812HO-3 premium, 2023 $2,779

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $10,396 in Jacksonville, versus $12,505 in its rural sample of Moore Haven. Their equal-weight benchmark is $11,450.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Florida’s relatively high median rent supports its rent-to-value screen, while general prices are above the national benchmark. That screen leaves out the address-specific insurance and assessment estimates that often decide whether a purchase works.

The absence of broad individual income tax does not make the corporate depreciation rule irrelevant to every structure. Florida’s published corporate guidance requires a covered bonus addition with recovery in sevenths. Identify the actual owner and taxpayer before importing a tax result into the property model.

Read the Florida retirement-tax details
GeorgiaRead state analysis

Georgia

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Median home $343,300Monthly gross rent $1,506HO-3 premium, 2023 $1,828

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $10,162 in Atlanta, versus $10,644 in its rural sample of Fitzgerald. Their equal-weight benchmark is $10,403. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Georgia’s rent observation is comparatively substantial relative to its home-value base, while general prices remain below the national benchmark. That helps the screen, but statewide figures cannot identify a correctly priced Atlanta-area house or coastal property.

Review nearby signed leases and competing supply, then obtain the rental assessment and coverage quote. The canonical tracker requires separate Georgia depreciation; a federal component deduction should not be assumed to reduce the Georgia base in the same year.

Read the Georgia retirement-tax details
HawaiiRead state analysis

Hawaii

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Median home $875,900Monthly gross rent $1,942HO-3 premium, 2023 $1,549

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $2,096 in Honolulu, versus $3,270 in its rural sample of Kauai. Their equal-weight benchmark is $2,683. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Hawaii’s high median home value weighs heavily against its rent-to-value screen even with high nominal rents. The low homeowner tax observation does not resolve the cost of an investor’s actual property class, and the general-price measure is also elevated.

Distinguish fee ownership, any leasehold terms and association obligations before comparing a unit’s price with mainland property. Imported labor and materials are not priced by the grade; obtain local management and replacement quotations instead of extrapolating from another market.

Read the Hawaii retirement-tax details
IdahoRead state analysis

Idaho

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Median home $446,400Monthly gross rent $1,384HO-3 premium, 2023 $1,135

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $5,408 in Boise, versus $4,587 in its rural sample of Saint Anthony. Their equal-weight benchmark is $4,997.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Idaho’s home values are high relative to its observed rents, which limits the rental screen even though general prices are below the national benchmark. The statewide combination favors a careful purchase-price test over an assumption that every lower-cost state offers inexpensive rentals.

Compare a Boise-area annual lease with a northern Idaho vacation property using separate rent evidence. Inspect access and services for rural candidates and establish the fallback use before attributing investment value to recreation appeal.

Read the Idaho retirement-tax details
IllinoisRead state analysis

Illinois

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Median home $280,700Monthly gross rent $1,322HO-3 premium, 2023 $1,480

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $9,053 in Chicago, versus $15,023 in its rural sample of Galena. Their equal-weight benchmark is $12,038. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition. The source also reports Aurora at $17,724, kept separate rather than replacing the largest-city sample.

Illinois combines a comparatively moderate home-value base with a relatively high homeowner property-tax observation. The rent-to-value portion may look appealing while the actual carrying bill consumes a meaningful part of collected rent.

Compare the rental assessment and local levies for the exact parcel before choosing between a Chicago-area property and a downstate rental. Review the state depreciation adjustment independently of the federal deduction, and model the owner’s residence return separately for an out-of-state investment.

Read the Illinois retirement-tax details
IndianaRead state analysis

Indiana

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Median home $243,500Monthly gross rent $1,104HO-3 premium, 2023 $1,259

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $13,825 in Indianapolis, versus $11,556 in its rural sample of North Vernon. Their equal-weight benchmark is $12,690.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Indiana’s moderate home values and below-national general prices make the acquisition screen worth exploring. The income case still depends on a specific property’s signed rents, repair condition and assessment.

Indiana DLGF distinguishes homestead caps from other residential caps: 1% and 2% of gross assessed value, respectively, with other details affecting the final bill. A rental investor should not reuse a seller’s homestead assumption or treat either cap as the parcel’s universal effective rate.

Read the Indiana retirement-tax details
IowaRead state analysis

Iowa

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Median home $227,300Monthly gross rent $981HO-3 premium, 2023 $1,342

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $10,768 in Des Moines, versus $9,209 in its rural sample of Hampton. Their equal-weight benchmark is $9,988.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Iowa’s modest home-value base and low general-price observation support its screening result. Homeowner tax dollars are not equally low, so carry the exact assessment into the acquisition comparison instead of assuming every ownership cost moves with purchase price.

For a college-town or smaller-city rental, compare the lease calendar, tenant turnover and local employment exposure. A single statewide rent median cannot distinguish a stable occupied building from a property that needs rehabilitation and a new tenant base.

Read the Iowa retirement-tax details
KansasRead state analysis

Kansas

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Median home $238,700Monthly gross rent $1,079HO-3 premium, 2023 $1,733

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $7,870 in Wichita, versus $13,633 in its rural sample of Iola. Their equal-weight benchmark is $10,751.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Kansas benefits from moderate home values and below-national general prices in the screening model. The homeowner tax bill, however, is not at the bottom of the dataset, so a property-level carrying-cost estimate remains important.

A Kansas City-area property and a smaller Kansas community require separate employment and comparable-rent checks. Confirm which side of a state line the asset occupies; the metro name alone cannot establish the applicable assessment, lease framework or income-tax sourcing.

Source qualification: Depreciation: Confirm Kansas treatment of IRC §168(n) from a current Department of Revenue instruction or enacted statute before describing Kansas as fully conforming.

Read the Kansas retirement-tax details
KentuckyRead state analysis

Kentucky

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Median home $226,000Monthly gross rent $998HO-3 premium, 2023 $1,525

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $6,456 in Louisville, versus $6,804 in its rural sample of Morehead. Their equal-weight benchmark is $6,630. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Kentucky’s modest home values and below-national general prices help its acquisition screen. That is a reason to inspect actual rental opportunities, not a statewide cap-rate estimate; the housing and rent medians represent different samples.

Compare Louisville, Lexington and a recreation-market property independently. Examine repair needs and the lease calendar, then reconcile Kentucky depreciation rather than treating the federal deduction as an automatically usable state deduction.

Read the Kentucky retirement-tax details
LouisianaRead state analysis

Louisiana

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Median home $223,200Monthly gross rent $1,064HO-3 premium, 2023 $3,027

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $7,962 in New Orleans, versus $5,788 in its rural sample of Natchitoches. Their equal-weight benchmark is $6,875. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Louisiana’s low home values and general-price observation can make the acquisition screen attractive. The screen deliberately excludes a landlord-insurance estimate, so it cannot tell you whether that apparent margin survives the property’s actual coverage, deductible and flood requirements.

Compare New Orleans, Baton Rouge and an inland smaller market using independent rent and expense records. The canonical depreciation research describes a Louisiana state expensing election; verify its eligibility and basis consequences rather than presenting it as automatic federal conformity.

Read the Louisiana retirement-tax details
MaineRead state analysis

Maine

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Median home $341,900Monthly gross rent $1,210HO-3 premium, 2023 $1,150

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $7,547 in Portland, versus $10,445 in its rural sample of Rockland. Their equal-weight benchmark is $8,996. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Maine’s rent-to-value observation is less generous than its scenic appeal might suggest: the statewide rent numerator does not automatically rise with a vacation-property asking price. General prices are below the national benchmark, but that does not establish a low cost for a particular coastal or remote building.

Compare a Portland-area annual lease with a seasonal recreation property on their own income evidence. Price winter service, heating and contractor access, and keep Maine’s separate state depreciation computation in the tax projection.

Read the Maine retirement-tax details
MarylandRead state analysis

Maryland

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Median home $436,300Monthly gross rent $1,721HO-3 premium, 2023 $1,578

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $14,685 in Baltimore, versus $10,555 in its rural sample of Denton. Their equal-weight benchmark is $12,620. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Maryland’s above-national general prices reduce the affordability component of its screen. Rent must be evaluated against both the actual acquisition price and local carrying costs; a commute-friendly address can command a premium on both sides of that comparison.

Distinguish a Washington-area property, Baltimore rental and Eastern Shore purchase. The canonical depreciation tracker includes a fact-specific manufacturing exception that should not be assumed to apply to an ordinary residential rental.

Source qualification: Depreciation: Apply the Maryland manufacturing exception only after confirming the taxpayer and property meet the state definition; do not map federal §168(n) eligibility directly to the Maryland exception.

Read the Maryland retirement-tax details
MassachusettsRead state analysis

Massachusetts

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Median home $607,400Monthly gross rent $1,848HO-3 premium, 2023 $2,134

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $6,392 in Boston, versus $9,798 in its rural sample of Adams. Their equal-weight benchmark is $8,095. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Massachusetts’s high home-value and general-price observations weigh on its acquisition screen even with high nominal rents. A buyer needs evidence for the actual rent premium and the condition of the building; the statewide ratio cannot identify an attractive entry price.

Budget recurring taxes and building systems alongside any renovation. The canonical table distinguishes Section 168(k) from production-property treatment across years; an ordinary rental should not inherit an industrial-property deduction merely because a state provision changes.

Read the Massachusetts retirement-tax details
MichiganRead state analysis

Michigan

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Median home $254,200Monthly gross rent $1,168HO-3 premium, 2023 $1,110

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $23,310 in Detroit, versus $15,626 in its rural sample of Manistique. Their equal-weight benchmark is $19,468. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Michigan’s moderate home values and below-national general prices support its rental screen, but a seller’s existing tax bill can be misleading. Treasury explains that a qualifying ownership transfer uncaps taxable value in the following calendar year, subject to exceptions.

Obtain the post-transfer rental estimate before relying on a Detroit-area, college-town or lake-property listing’s expense history. The state’s canonical bonus treatment also differs between individual or flow-through taxpayers and corporate taxpayers, so preserve that distinction in the tax model.

Read the Michigan retirement-tax details
MinnesotaRead state analysis

Minnesota

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Median home $344,600Monthly gross rent $1,291HO-3 premium, 2023 $1,988

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $10,411 in Minneapolis, versus $9,388 in its rural sample of Glencoe. Their equal-weight benchmark is $9,899.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Minnesota’s home-value and rent observations produce a less aggressive income-to-price screen than several lower-price Midwestern states. General prices are close to the national level, so the investment case should be built around a local rent roll and inspected condition.

For depreciation, distinguish Minnesota’s eligible bonus base from the percentage added back. The revenue department page contains older-year examples alongside the standing recovery mechanism; use the enacted current-year authority instead of automatically applying an old phase-down example to a 2026 asset.

Read the Minnesota retirement-tax details
MississippiRead state analysis

Mississippi

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Median home $186,500Monthly gross rent $990HO-3 premium, 2023 $2,029

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $18,326 in Jackson, versus $13,001 in its rural sample of Philadelphia. Their equal-weight benchmark is $15,663.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Mississippi’s low home values and regional prices create a strong statistical acquisition screen. That result should lead to inspection and tenant-market research, because the rent-to-value ratio does not account for a cheap building’s repair backlog, collection risk or marketability.

Compare an inland annual rental with a Gulf Coast or recreation purchase separately. Mississippi’s canonical research describes its own expensing provision; confirm state qualification and basis treatment instead of labeling every eligible federal deduction automatic state conformity.

Read the Mississippi retirement-tax details
MissouriRead state analysis

Missouri

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Median home $254,400Monthly gross rent $1,067HO-3 premium, 2023 $1,589

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $9,563 in Kansas City, versus $4,599 in its rural sample of Boonville. Their equal-weight benchmark is $7,081. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Missouri’s moderate home values and below-national price index create a useful starting point for rental screening. The statewide rent observation still combines markets that should be analyzed independently, including St. Louis, Kansas City and recreation destinations.

For a Kansas City-area purchase, identify the state in which the parcel actually sits before comparing tax and lease requirements. Missouri’s canonical research records federal depreciation conformity for current property, but current loss usability depends on the owner and activity.

Read the Missouri retirement-tax details
MontanaRead state analysis

Montana

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Median home $425,400Monthly gross rent $1,177HO-3 premium, 2023 $1,768

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $3,146 in Billings, versus $4,352 in its rural sample of Glasgow. Their equal-weight benchmark is $3,749. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Montana’s median home value is high relative to the observed rent, so the screen is restrained despite below-national general prices. A mountain or recreation-market premium should be supported by the actual operating plan rather than by statewide affordability language.

Separate a year-round tenant property from a personally appealing vacation purchase. Contractor access, seasonal maintenance and the distance between the asset and its manager can matter more than the broad price index used in the score.

Read the Montana retirement-tax details
NebraskaRead state analysis

Nebraska

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Median home $263,100Monthly gross rent $1,102HO-3 premium, 2023 $2,142

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $11,663 in Omaha, versus $12,357 in its rural sample of Sidney. Their equal-weight benchmark is $12,010. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Nebraska’s below-national general-price observation helps its acquisition screen, while homeowner property-tax dollars require separate attention. A lower purchase price does not guarantee a proportionately smaller annual tax bill.

Compare Omaha, Lincoln and a smaller community through actual rent rolls, tenant demand and service access. The canonical tracker records federal depreciation conformity, but a currently suspended loss should not be budgeted as cash available for the next repair.

Read the Nebraska retirement-tax details
NevadaRead state analysis

Nevada

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Median home $455,500Monthly gross rent $1,709HO-3 premium, 2023 $1,013

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $6,973 in Las Vegas, versus $7,697 in its rural sample of Fallon. Their equal-weight benchmark is $7,335. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Nevada’s relatively high house values and near-national general prices produce a different investment picture from its no-individual-income-tax label. The buy decision needs a local rent-to-price spread and actual rental carrying costs.

Separate a Las Vegas annual rental, Reno-area property and recreation-oriented unit. The owner’s federal and residence-state tax position may remain relevant even where a Nevada individual income-tax deduction has no broad tax base against which to operate.

Read the Nevada retirement-tax details
New HampshireRead state analysis

New Hampshire

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Median home $458,800Monthly gross rent $1,558HO-3 premium, 2023 $1,300

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $8,306 in Manchester, versus $10,859 in its rural sample of Lancaster. Their equal-weight benchmark is $9,582.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

New Hampshire’s high homeowner-tax observation and above-national general prices can offset the appeal of its individual-income-tax label. The rental screen also reflects a relatively large home-value denominator.

A southern New Hampshire commuter property and a mountain or lake purchase should have separate rent and operating assumptions. Business-tax classification needs its own review; a statement about broad individual income tax does not settle every tax that can affect a rental enterprise.

Source qualification: Depreciation: Confirm New Hampshire Business Profits Tax treatment of IRC §168(n) from 2026 legislation or Department of Revenue Administration instructions.

Read the New Hampshire retirement-tax details
New JerseyRead state analysis

New Jersey

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Median home $496,000Monthly gross rent $1,800HO-3 premium, 2023 $1,551

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $11,462 in Newark, versus $13,954 in its rural sample of Maurice River Twp. Their equal-weight benchmark is $12,708. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

New Jersey has the highest median homeowner tax bill in this dataset and above-national general prices. Its nominal rents therefore need to be compared with the actual acquisition price and rental assessment, not treated as a standalone income advantage.

A commuter-market rental and a shore property carry different operating plans. The canonical tracker calls for separate New Jersey depreciation and basis, so reconcile state taxable income independently of federal bonus or a resident owner’s other-state return.

Read the New Jersey retirement-tax details
New MexicoRead state analysis

New Mexico

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Median home $279,900Monthly gross rent $1,117HO-3 premium, 2023 $1,490

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $9,212 in Albuquerque, versus $6,069 in its rural sample of Santa Rosa. Their equal-weight benchmark is $7,640.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

New Mexico’s moderate home-value base and below-national price index support screening for opportunities, but its statewide rent-to-value relationship is not a property yield. A Santa Fe purchase and an Albuquerque annual rental require their own purchase and rent evidence.

The canonical tracker has verified corporate conformity context but leaves individual depreciation treatment unresolved. An individual investor’s state-tax projection should therefore show that gap rather than reuse the corporate conclusion.

Read the New Mexico retirement-tax details
New YorkRead state analysis

New York

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Median home $449,800Monthly gross rent $1,634HO-3 premium, 2023 $1,801

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $15,672 in New York City, versus $16,040 in its rural sample of Warsaw. Their equal-weight benchmark is $15,856. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition. The source also reports Buffalo at $7,373, kept separate rather than replacing the largest-city sample.

New York’s high homeowner-tax and general-price observations complicate a simple comparison of nominal rents. The statewide housing median also blends metropolitan and upstate markets, so it cannot price a specific property’s income stream.

Separate New York depreciation and basis from the federal schedule, and review the owner’s residence and the rental’s location independently. An inexpensive upstate building can have a very different repair and tenant profile from a New York City property; one statewide average is not a substitute for either inspection.

Read the New York retirement-tax details
North CarolinaRead state analysis

North Carolina

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Median home $333,000Monthly gross rent $1,338HO-3 premium, 2023 $1,852

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $4,315 in Charlotte, versus $5,208 in its rural sample of Edenton. Their equal-weight benchmark is $4,761.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

North Carolina’s below-national general-price observation helps its acquisition screen, but a Triangle annual rental, mountain property and coastal home need different rent and carrying-cost evidence. The state average cannot decide among those markets.

North Carolina law adds back 85% of covered accelerated depreciation and allows one fifth of that addition in each of the next five years. A federal deduction therefore cannot be imported unchanged into the current state-tax projection, even where the property’s cash operations are strong.

Read the North Carolina retirement-tax details
North DakotaRead state analysis

North Dakota

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Median home $266,100Monthly gross rent $980HO-3 premium, 2023 $1,414

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $8,250 in Fargo, versus $9,585 in its rural sample of Devils Lake. Their equal-weight benchmark is $8,917.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

North Dakota’s below-national general prices improve its acquisition screen, while the rent-to-value relationship is less generous than that of the lowest-price states. A local demand and rent-roll review remains more useful than the statewide ratio.

Compare Fargo, Bismarck and a smaller market independently, including the depth of alternative tenants if the current lease ends. Price winter service and building systems directly; general prices do not measure the cost of an emergency repair at a specific address.

Read the North Dakota retirement-tax details
OhioRead state analysis

Ohio

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Median home $239,800Monthly gross rent $1,090HO-3 premium, 2023 $1,116

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $14,327 in Columbus, versus $10,526 in its rural sample of Bryan. Their equal-weight benchmark is $12,426.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Ohio’s moderate home values and below-national general prices can support a useful acquisition shortlist. Homeowner property-tax dollars are not negligible, so a gross-rent comparison should be followed by a current rental assessment and repair scope.

Cleveland, Columbus, Cincinnati and smaller Ohio markets should be compared with their own rent rolls and building conditions. Ohio’s canonical bonus rule includes payroll-growth and loss-related exceptions; a single default fraction is not a reliable after-tax result for every owner.

Read the Ohio retirement-tax details
OklahomaRead state analysis

Oklahoma

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Median home $222,100Monthly gross rent $1,044HO-3 premium, 2023 $2,486

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $8,618 in Oklahoma City, versus $6,106 in its rural sample of Mangum. Their equal-weight benchmark is $7,362. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Oklahoma’s modest home values and low general-price observation improve the screening grade. A favorable rent-to-value statistic still needs a verified property condition, collection record and actual purchase basis.

Compare Oklahoma City, Tulsa and a smaller community independently, including tenant alternatives after turnover. The canonical tracker describes a state expensing election with unresolved current implementation details; do not replace those facts with automatic full federal conformity in the tax model.

Source qualification: Depreciation: Confirm Oklahoma treatment of IRC §168(n) and the current state election mechanics from 2026 return instructions before describing the state as fully conforming.

Read the Oklahoma retirement-tax details
OregonRead state analysis

Oregon

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Median home $497,500Monthly gross rent $1,597HO-3 premium, 2023 $1,003

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $16,451 in Portland, versus $7,316 in its rural sample of Tillamook. Their equal-weight benchmark is $11,883.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Oregon’s high home-value base and above-national general prices weigh on its rent-to-value and affordability screen. An attractive personal destination therefore needs a particularly clear property-level income case before it becomes an investment recommendation.

Compare a Portland-area annual rental with a coast or recreation property using different operating records. The canonical depreciation tracker records 2026 decoupling with recovery instructions pending; do not fill that gap with either immediate full conformity or a claim that depreciation is permanently lost.

Read the Oregon retirement-tax details
PennsylvaniaRead state analysis

Pennsylvania

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Median home $277,600Monthly gross rent $1,252HO-3 premium, 2023 $1,217

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $7,599 in Philadelphia, versus $9,472 in its rural sample of Ridgway. Their equal-weight benchmark is $8,535.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Pennsylvania’s moderate home-value base and below-national general prices make the acquisition screen worth investigating, while local property taxes and building condition remain essential. A Philadelphia rental, Pittsburgh building and smaller-town property should not share one rent or repair assumption.

Pennsylvania personal-income-tax depreciation follows its own rules in the canonical research. Maintain the state schedule and identify the owner’s residence before translating federal cost segregation into a current household tax effect.

Read the Pennsylvania retirement-tax details
Rhode IslandRead state analysis

Rhode Island

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Median home $455,700Monthly gross rent $1,418HO-3 premium, 2023 $2,396

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $13,991 in Providence, versus $8,113 in its rural sample of Hopkinton. Their equal-weight benchmark is $11,052. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Rhode Island’s high home-value base relative to its observed rent restrains the acquisition screen. General prices are also above the national benchmark, so the actual rent premium must be supported rather than assumed from proximity to a desirable coastal or urban area.

Compare a Providence-area annual rental with a seasonal coastal property using different income and repair evidence. The canonical tracker requires separate depreciation and basis without federal bonus; the state-tax calculation cannot simply reuse the federal return.

Read the Rhode Island retirement-tax details
South CarolinaRead state analysis

South Carolina

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Median home $299,500Monthly gross rent $1,272HO-3 premium, 2023 $1,753

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $11,154 in Charleston, versus $18,674 in its rural sample of Mullins. Their equal-weight benchmark is $14,914. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

South Carolina’s below-national general prices and moderate home values support its screening position. Its low homeowner-tax observation, however, deserves special caution: the state’s 4% legal-residence assessment treatment is tied to a qualifying primary home.

A full-time investment rental should be priced with the assessor’s intended-use classification and actual levies. Compare a Greenville-area annual rental with a coastal property only after bringing taxes, rental coverage and management onto the same basis.

Read the South Carolina retirement-tax details
South DakotaRead state analysis

South Dakota

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Median home $289,600Monthly gross rent $999HO-3 premium, 2023 $1,614

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $9,513 in Sioux Falls, versus $12,772 in its rural sample of Vermillion. Their equal-weight benchmark is $11,142.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

South Dakota’s low regional-price observation helps the acquisition screen, but its rent-to-value context is less generous than several lower-price states. The absence of broad individual income tax should not be substituted for a property-level cash-flow analysis.

Separate Sioux Falls or Rapid City annual leases from a Black Hills recreation purchase. Confirm tenant depth, the local assessment and management coverage; a state tax label does not tell an investor what price a building’s rent can support.

Read the South Dakota retirement-tax details
TennesseeRead state analysis

Tennessee

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Median home $332,600Monthly gross rent $1,284HO-3 premium, 2023 $1,649

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $7,007 in Nashville, versus $5,072 in its rural sample of Savannah. Their equal-weight benchmark is $6,039.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Tennessee’s below-national general prices help its acquisition screen, while home values and rents must still be compared locally. A Nashville purchase, Memphis rental and mountain vacation property represent different price and income assumptions.

The absence of broad individual income tax does not settle entity-level obligations. The canonical tracker gives Tennessee franchise/excise depreciation a different rule from a full-current-federal-bonus assumption; identify the actual taxpayer and entity treatment before projecting the deduction’s state effect.

Read the Tennessee retirement-tax details
TexasRead state analysis

Texas

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Median home $313,200Monthly gross rent $1,475HO-3 premium, 2023 $2,864

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $12,832 in Houston, versus $13,138 in its rural sample of Fort Stockton. Their equal-weight benchmark is $12,985. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Texas’s rent-to-value observation supports a useful acquisition screen, but its homeowner property-tax dollars are significant and need parcel-level replacement in underwriting. A state without broad individual income tax can still carry a substantial annual real-estate bill.

Compare the actual Houston, Dallas–Fort Worth, Austin, San Antonio or smaller-market rent roll and purchase basis. Franchise-tax treatment is a separate entity question; the canonical tracker does not treat it as an ordinary net-income tax where every federal deduction flows through.

Read the Texas retirement-tax details
UtahRead state analysis

Utah

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Median home $545,200Monthly gross rent $1,593HO-3 premium, 2023 $1,107

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $2,861 in Salt Lake City, versus $3,107 in its rural sample of Richfield. Their equal-weight benchmark is $2,984. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Utah’s high home-value observation relative to rent restrains the acquisition screen even though general prices are near the national benchmark. The investment case needs a specific price and rent relationship rather than a broad growth or lifestyle narrative.

Separate a Wasatch Front annual rental from a park-gateway or ski-area purchase. The canonical depreciation research retains a current-instruction review flag, so do not present every state-tax implication as fully reconciled while that qualification remains.

Read the Utah retirement-tax details
VermontRead state analysis

Vermont

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Median home $352,800Monthly gross rent $1,319HO-3 premium, 2023 $1,215

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $14,461 in Burlington, versus $9,266 in its rural sample of Hartford. Their equal-weight benchmark is $11,863.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Vermont’s home values, rents and near-national general prices do not support treating it as an automatically inexpensive rural investment state. Its homeowner tax dollars also require close attention when comparing annual carrying costs.

A Burlington-area annual lease and a mountain vacation property need different rent, access and repair assumptions. The canonical tracker disallows federal bonus and uses non-bonus state depreciation, so retain a separate Vermont basis and recovery schedule in the analysis.

Read the Vermont retirement-tax details
VirginiaRead state analysis

Virginia

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Median home $403,500Monthly gross rent $1,646HO-3 premium, 2023 $1,537

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $4,368 in Virginia Beach, versus $4,635 in its rural sample of Wise. Their equal-weight benchmark is $4,501.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Virginia’s home-value and rent observations create a middle-ground acquisition screen, with general prices close to the national level. The statewide result can conceal the difference between a Northern Virginia commuter property, a smaller-city rental and a coastal or mountain purchase.

Use local lease comparables and a rental assessment before comparing the price. Virginia requires its own depreciation computation in the canonical tracker, so project the state adjustment separately from a federal cost-segregation result and the owner’s residence-state return.

Read the Virginia retirement-tax details
WashingtonRead state analysis

Washington

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Median home $602,200Monthly gross rent $1,824HO-3 premium, 2023 $1,232

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $5,371 in Seattle, versus $5,049 in its rural sample of Okanogan. Their equal-weight benchmark is $5,210. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Washington’s high home-value and general-price observations weigh on the acquisition screen. A strong nominal rent needs to support the actual purchase price, financing, rental assessment and service costs.

Washington DOR distinguishes a true rental of real estate from a license to use property: ordinary renting or leasing is generally outside B&O and retail sales tax, while other uses can differ. Do not automatically impose a gross-receipts tax on every annual rental or copy that exemption onto transient lodging.

Read the Washington retirement-tax details
West VirginiaRead state analysis

West Virginia

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Median home $170,800Monthly gross rent $883HO-3 premium, 2023 $1,179

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $11,484 in Charleston, versus $5,543 in its rural sample of Elkins. Their equal-weight benchmark is $8,513.50. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

West Virginia’s very low home-value observation creates one of the strongest rent-to-value screens in the library, and general prices are below the national benchmark. A high ratio can still reflect a property whose repairs, tenant demand or resale liquidity need extra work.

For a low-price candidate, identify the usable building, access, utilities and realistic tenant pool before treating the purchase price as a bargain. The canonical tracker records federal depreciation conformity, but no deduction substitutes for rent that cannot be collected or a repair that must be funded.

Read the West Virginia retirement-tax details
WisconsinRead state analysis

Wisconsin

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Median home $294,700Monthly gross rent $1,142HO-3 premium, 2023 $923

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $12,929 in Milwaukee, versus $10,443 in its rural sample of Rice Lake. Their equal-weight benchmark is $11,686. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Wisconsin’s moderate home values and below-national general prices support investigation, while homeowner property-tax dollars deserve a close look. Compare the actual annual rental bill with the property’s rent rather than assuming a low acquisition price controls every cost.

A Milwaukee building, Madison-area rental and northern recreation property need distinct lease and management evidence. Wisconsin’s canonical tracker requires separate depreciation, so the state-income-tax calculation should preserve its own basis rather than follow federal bonus unchanged.

Read the Wisconsin retirement-tax details
WyomingRead state analysis

Wyoming

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Median home $339,500Monthly gross rent $998HO-3 premium, 2023 $1,853

For the same $600,000 apartment and $30,000 fixtures, the Lincoln Institute / MCFE study reports a 2025 tax bill of $3,940 in Cheyenne, versus $4,552 in its rural sample of Worland. Their equal-weight benchmark is $4,246. These are two local rental-building examples, not a statewide rate. Check reassessment and classifications before applying either result to an acquisition.

Wyoming’s rent-to-value observation is relatively small despite below-national general prices. The no-broad-income-tax label therefore should not be read as evidence of a strong rental income return at the observed housing values.

Separate a Jackson-area recreation purchase from an annual rental in Cheyenne or Casper. Price actual tenant demand, management distance and winter access. Personal appeal and a favorable income-tax category do not establish what the building’s rent can support.

Read the Wyoming retirement-tax details
Taxstra methodologyScoring factors, weights, research profiles and limitations.

How Taxstra grades each state out of 10

We score every state using the same rules. Costs and financial factors make up 90% of the overall score, and WalletHub’s Quality of Life category makes up 10%. Each category tile shows how much it counts. Tiles marked “Not in overall score” offer extra context without changing the ranking.

What counts toward the score

  • Rent compared with home prices: 50% of the financial share
  • Rental property taxes: 30% of the financial share
  • Everyday living costs: 20% of the financial share

What does a score out of 10 mean?

For financial categories, 10 is the strongest result in the comparison and 1 is the weakest. Lower costs generally score better; higher pay scores better. A 7.9 is a comparison tool, not a promise about your finances.

Why can scores and ranks look different?

Cards show one decimal place, while rankings use two. Two states can both display 7.9 and still have slightly different ranks. States with the same ranking value share a rank.

Which WalletHub ranking do we use?

We use WalletHub’s Quality of Life category, not its overall ranking. For example, Illinois is fifth for Quality of Life and eighteenth overall in the cited study. Those are two different measures.

What if information is missing?

We leave it missing instead of guessing. If a required factor is unavailable, we label the score provisional and do not give it an overall rank.

Technical formulas and source definitions

Uses the equal-weight mean of two standardized apartment-tax samples, one urban and one rural, not a statewide property-tax rate. Rent/value compares different Census housing samples. No property yield, financing return, insurance quote, legal-policy score or usable deduction is inferred.

Financial categories: actual measurement spread
The most favorable observed value receives 10 and the least favorable receives 1. Intermediate grades are scaled linearly between them: 1 + 9 × the favorable share of the observed range. Lower costs score higher; higher pay scores higher. If every observation is identical, each receives 5.5. These relative grades do not have a universal pass/fail cutoff. Extreme observations can widen the range and compress other grades. We do not narrow a genuine gap just to produce a tighter leaderboard; a change to a source population must have a documented measurement reason. The STR grade is a regional spending-cost screen. Hotel employment is excluded from its score because hotel jobs do not measure residential STR demand; actual occupancy and booking revenue require local property research.
Malpractice and rental taxes: defined samples
The physician index weights CMS county malpractice-cost observations by their malpractice RVUs within each state. It uses the underlying 2026 update, based on 2023 premiums and RVUs, before Medicare payment adjustments. State-specific specialty mix, missing insurer types and CMS imputation limit its use as a quote comparison. Apartment-tax comparisons hold building and fixture values constant and average the study’s named urban and rural municipalities equally. Including both reduces dependence on one city; it still does not represent all localities. They are neither statewide tax rates nor single-family STR bills.
Quality of life: the source category, not the overall WalletHub rank
We use the quality-of-life category of WalletHub’s 2026 state study, published August 10, 2026. Taxstra converts its rank to a grade using 1 + 9 × (50 − rank) / 49. The publisher’s category includes amenities, mobility, leisure, weather and environmental conditions. WalletHub’s overall ranking also includes affordability, economy, education and health, and safety. We use its narrower quality-of-life category as an amenities and daily-life input; our financial factors already measure costs separately. For example, Illinois is #5 in that category and #18 overall in WalletHub. Taxstra’s own guide ranking is a third, separately calculated result. Differences in these rank-based grades are not measured differences in happiness.
Overall grade and rank
Multiply each unrounded component grade by its published weight, add the results, then display one decimal place. Round the composite to two decimals for ranking and retain genuine ties at that precision. Cards display one decimal for readability; two cards displaying 7.9 can therefore have different positions. The table tooltip and downloadable dataset include the ranking value. For example, financial 6.0 and quality of life 9.0 produce 6.6 at 80% financial / 20% quality-of-life weights. Direct tax and deduction comparisons rank their displayed dollar outcomes and show a separate normalized category grade.
Incomplete evidence
Unavailable category data receives no grade. When a weighted component is missing, the remaining components are reweighted and the card labels the result provisional, shows evidence coverage and excludes it from the overall rank. The presence of a numeric provisional grade is not evidence that the missing category was measured.
What a grade does not claim
These are screening grades, not completed all-factor tax or legal rankings. The named tax benchmarks and CMS malpractice-cost index are included only where the displayed weights say so. Full-return taxes, individual insurance quotes and legal-policy judgments remain separate. A high amenities grade does not mean that everyone prefers the state. Family ties, local neighborhoods, climate preferences and a particular job can outweigh statewide observations.

For investment guides, livability describes market context; it does not forecast rent growth or returns and does not assume that the investor lives in the property’s state. In guides about tax bills, the tax calculations stay separate from lifestyle grades.

Research examples and calculation assumptions

Taxstra's research profiles

A useful comparison holds the household and property constant. These are the exact starting profiles for the tax research; a scenario is not a completed tax estimate unless its result is explicitly shown.

Physician employment
$500,000 in wages, one earner, no dependents, no elective retirement contributions. Married filing jointly and single results are separate. The score’s separate tax sensitivity uses $500,000 of state taxable wage income with state AGI equal to that base; it is not a gross-to-taxable return calculation. Compensation observations use the BLS occupation specified beside the result and exclude self-employment.
Contracting and business ownership
$500,000 of profit before owner compensation. An S-corp example tests a $250,000 owner wage; that is a sensitivity assumption, not a reasonable-compensation opinion. The separate employee-payroll example is five employees at $100,000 each. Employee wages already included in operating expenses are never deducted twice.
Retirement
Both spouses are 67, married filing jointly, receiving $120,000 from traditional retirement accounts, $60,000 in private pensions, $60,000 in Social Security, $30,000 in ordinary investment income and $30,000 in long-term capital gains. Each spouse receives half. Total cash income is $300,000; taxable income depends on the income category and applicable rules. Full-year residents. Qualified traditional distributions; employer-funded defined-benefit pension; 401(k) entirely employee elective deferrals with no employer contributions; IRA entirely self-funded with no exempt pension rollover; Pennsylvania-eligible retirement distributions after retirement. Exclusions are applied to qualifying plan income first where several income categories are eligible. No federal or state tax bill is estimated.
Property acquisition
A debt-free $1 million purchase, with $200,000 allocated to land. The long-term rental example assumes $90,000 of rent and $30,000 of expenses before property tax, insurance and depreciation. The STR example assumes $150,000 of bookings and $75,000 of expenses on the same basis. These are research starting profiles, not market forecasts. The standardized scored apartment example is different: $600,000 land and building plus $30,000 fixtures, with the same values across named municipalities. The STR worked example uses a separately labeled fixed property scenario. It does not change the statewide ranking or represent forecast bookings.
Depreciation
A sensitivity considers an additional $100,000 deduction that the taxpayer can currently use. An addback can defer a state benefit even when federal expensing is available. A current deduction, a future recovery and a permanent tax reduction are different results.
State and local scope
Property location and owner residence are separate inputs. There is no assumed “average” local income tax. A combined state/local result needs a named locality and its resident or nonresident rules. Figures explicitly labeled state-only exclude local tax.

How to reproduce a comparison

  1. Choose the named measure and its source year.
  2. Apply the formula displayed beside the map to the source observation for each state.
  3. Round money to whole dollars, ratios to two decimal places and grades to one decimal place. Rank in the direction stated by the measure: the tax-penalty guide places the largest burden first, while its tax-cost grade still rewards a lower bill. Changing display order does not change a state’s rank.
  4. Give equal ranking values the same competition rank (composites use two decimals; cards show one). After a tie, skip the occupied positions.
  5. Leave suppressed or unavailable observations unranked. Retain the state in the table and describe the gap.

A price-adjusted wage, a homeowner tax bill and a lodging-employment concentration answer different questions. The balanced view explicitly combines the guide’s named financial factors with livability at the displayed weights. Other categories provide context. A favorable legal policy is not treated as a measured dollar saving. Material modeling assumptions require review before a full financial ranking is released.

The financial profiles are a $500,000 W-2 household, a business with $500,000 profit before owner compensation, a five-person $500,000 payroll, and a married age-67 household with $300,000 of mixed retirement and investment income. Investor examples assume the purchase location is separate from the owner’s residence.

These scenarios define the research questions. Unless a completed calculation is explicitly shown, a profile is not an estimated return. Tax sensitivities use separately supplied state-taxable wage or ordinary-business bases, exclude local tax and do not replace full-return calculations. We do not calculate with unverified secondary-source schedules.

Published survey estimates have sampling error. We preserve available Census margins of error and BLS relative errors in the source data. Small apparent differences should not be treated as certainty. A comprehensive state decision still requires the actual locality, household, property, employer and coverage terms.

Sources and measurement datesOriginal datasets, primary authority, verification dates and downloadable research.

Download the published 50-state dataset (CSV) · Dataset definitions and coverage

Economic observations were retrieved September 12, 2026. Measurement years differ because the agencies publish on different schedules. Existing retirement rules retain their August 4, 2026 review date; existing PTET and depreciation research retain August 30, 2026. Unresolved entries remain identified.

The Census property-tax figure is a median dollar bill on owner-occupied homes, not a tax rate on rentals. BLS physician wages exclude self-employment. NAIC premiums describe owner-occupied HO-3 policies. CMS healthcare spending includes several payers and all ages. BLS accommodation employment includes hotels and other lodging; it is not STR revenue.

State-specific primary-authority links appear with each state. A source listed for one tax category does not verify a different category.

Common questions

Which state has the highest rental return?

This dataset cannot establish that. Its rent and home-value medians describe different properties, and it lacks comparable investor purchase prices, vacancy, capital expenditure, rental assessments and landlord insurance. The displayed score identifies a research shortlist.

Does moving to a state without individual income tax eliminate tax on my rentals elsewhere?

Do not assume so. Property-state sourcing, the owner’s residence and entity treatment require separate review. Federal tax also remains relevant.

Can I use a seller’s homestead tax bill?

Use it as a document to investigate, not as the rental underwriting amount. Confirm the treatment after transfer, change of use, exemptions and reassessment with the assessor.

Why is homeowners insurance excluded from the investment grade?

The available NAIC observation is an HO-3 owner-occupied average. It does not represent the landlord or STR coverage needed for the purchase, so treating it as an investor cost would create false precision.

Can a large depreciation deduction rescue weak cash flow?

A deduction does not pay a repair bill. Its current use can be limited, state treatment can differ and later depreciation or sale consequences matter. Evaluate recurring property cash flow before adding tax timing to the investment decision.

Should an out-of-state investor use the livability score?

Read it as resident-life context. A remote investment can succeed in a place you would not choose as a personal home. The property factors, actual lease comparables and operating requirements answer different questions from personal amenities.

Why does livability matter when buying an investment property?

Neighborhood amenities and the experience of living in an area belong in rental-market research. The state-level quality-of-life index is context, not evidence of a particular property’s occupancy, rent growth or return. Validate demand using local leases and comparable properties.

Should I buy where I want to live?

That depends on your investment strategy and operating capacity. The best personal residence and the best rental acquisition may be in different markets. Compare the investment’s cash flow separately from your household’s relocation preferences.

Is the rent-to-value comparison an expected rental yield?

No. It divides statewide median gross rent by statewide median owner-occupied home value. Those observations describe different housing populations. Use an actual purchase price, achievable rent and operating budget to underwrite a property.

Can a high-livability state still be a poor investment?

Yes. An attractive location can have a purchase price, financing cost or operating burden that leaves an unattractive return. A quality-of-life score cannot rescue a property that fails your underwriting.

Why can the WalletHub rank differ from the rank on this card?

The card identifies WalletHub’s Quality of Life category rank. The linked study also has a separate Overall Rank column that incorporates affordability, economy, education and health, and safety. Illinois is #5 in Quality of Life but #18 overall in the 2026 WalletHub study. Taxstra’s headline rank combines the named financial factors with that quality-of-life category using our published weights; it is not WalletHub’s overall ranking.

Can readers customize the published ranking?

No. Each guide uses one fixed methodology and the same assumptions for every state. State search, map selection, shared links and embedded cards all use that published ranking. Separate financial examples explain the assumptions without changing the leaderboard.

How does Taxstra include livability in the ranking?

Composite guides combine their named financial factors with WalletHub’s Quality of Life category at fixed, guide-specific weights: 80% financial and 20% quality of life for physician and retirement composites; 90% financial and 10% quality of life for business and property composites. Direct tax, PTET and depreciation comparisons do not include quality of life in their ranking. Everyone sees the same ranking; choosing a state changes the displayed card, not the methodology. The score is a comparison tool, not an estimate of happiness or a completed tax return.

What does the livability measure include?

We use WalletHub’s 2026 quality-of-life category, which considers amenities, mobility, environmental conditions and leisure. Its methodology is linked in the sources. This category does not fully capture family ties, personal climate preferences, a particular school district or an individual neighborhood.

Does a score of 8.0 mean a state is 80% better?

No. The 1–10 grades describe relative results within the comparison. A score of 8.0 is neither a percentage tax saving nor a probability that you will enjoy living there. Review the underlying measures, fixed weights and limitations before making a shortlist.

Why can two states share a rank?

Taxstra ranks composite scores rounded to two decimals while cards display one decimal. Equal ranking values share the same competition rank. Direct dollar comparisons rank whole-dollar outcomes. Missing observations remain unranked when the selected calculation needs them; they are not replaced with zero.

Continue your research

Best States for Short-Term Rental Investors

Compare regional costs across all 50 states, then investigate local STR permission, demand, insurance and taxes with linked sources.

Regional spending-cost screen · Quality of life

Best States for Landlords

Compare property carrying costs and the state-specific operating questions that matter after a rental closes.

Urban/rural apartment-tax benchmark · Rent-to-value context · Quality of life

Where Bonus Depreciation Is Most Valuable

State conformity, individual versus corporate treatment, addbacks and recovery timing.

First-year deduction tax value · Retained bonus by taxpayer type · State expensing assumptions

Use the related calculator · View all 14 guides

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