10 Best States to Live in Overall in 2027

1. Massachusetts

Massachusetts ranks first overall because it pairs the nation's best K-12 and higher education systems with leading healthcare access and outcomes. The median household income tops $96,000, which offsets a ~$600,000 median home price for two-earner professional households. A flat 5% income tax plus a 4% surtax on income above $1 million funds these public goods. Life-sciences, biotech, and finance employment anchor the economy.

This state suits high-earning professionals and families who prioritize schools and healthcare over affordability. It trades away cost advantages—the ~$600,000 median home and steep taxes are the price of admission. Compared to New Hampshire below, Massachusetts offers denser job markets and university spillovers but charges more for housing and taxes. It is not for those seeking a low-tax or low-cost lifestyle.

2. New Hampshire

New Hampshire ranks second because it combines no income tax on wages with no general sales tax—a rare pairing—while maintaining low crime and strong schools. The median home price sits near $480,000, and Boston-commuter access extends economic opportunity. It routinely lands among the safest states, adding to its livability. The state's small size belies its high quality of life.

This state fits families and remote workers who want tax relief without sacrificing safety or education quality. It trades away the deep job density of Massachusetts, though Boston is within commuting range for many. Compared to Massachusetts, it offers a ~$120,000 lower median home price and no wage tax, but fewer in-state cultural and university amenities. It is ideal for those who value fiscal conservatism and proximity to a major metro.

3. Tennessee

Tennessee ranks third as the best value pick, with no state income tax on wages and a median home price around $340,000. The cost of living runs roughly 10% below the national average, while job growth spans Nashville, Memphis, Knoxville, and Chattanooga. Employers include HCA in healthcare, Volkswagen and Nissan in automotive, and FedEx in logistics. This combination of low taxes and genuine economic momentum is rare.

This state is for remote workers earning coastal salaries and families seeking to keep more of what they earn. It trades away the top-tier education and healthcare systems of New England states. Compared to New Hampshire, Tennessee offers a significantly lower median home price and warmer climate, but weaker public schools and higher property insurance in some regions. It is the flagship for the keep-more-of-what-you-earn camp.

4. Utah

Utah ranks fourth because it combines one of the youngest populations, lowest unemployment rates, and a vibrant "Silicon Slopes" tech corridor from Salt Lake City to Provo. The median home price is ~$520,000, with a flat 4.55% income tax. Five national parks provide unmatched outdoor recreation, and the economy is diversified across tech, finance, and healthcare. Strong family-oriented policies and community safety bolster its appeal.

This state suits young professionals, growing families, and outdoor enthusiasts who want economic opportunity alongside recreation. It trades away the cultural density of East Coast metros and has a higher median home price than Tennessee. Compared to Tennessee, Utah offers a stronger tech job market and better schools, but a colder climate and higher housing costs. It is ideal for those who prioritize growth and community over low taxes.

5. Florida

Florida ranks fifth because it offers no state income tax and no estate tax, with a median home price around $400,000. The economy spans tourism, aerospace on the Space Coast, and Miami finance, providing diverse employment. However, sharply rising property-insurance costs from hurricane risk offset some tax savings. The warm climate and lack of winter are major draws for many.

This state is for retirees, remote workers, and those who prioritize warm weather and no income tax. It trades away insurance affordability—annual premiums can reach $6,000—and faces growing hurricane exposure. Compared to Utah, Florida offers a lower median home price and no income tax, but weaker schools and higher disaster risk. It is best for those who can absorb insurance costs and value year-round warmth.

6. Minnesota

Minnesota ranks sixth because it pairs a ~$340,000 median home price with an unusually dense set of Fortune 500 headquarters, including Target, 3M, and UnitedHealth. Mayo Clinic anchors world-class healthcare, and progressive income tax rates rise to 9.85%. The state offers strong schools and a high quality of life, though winters are harsh. Its economy is resilient across healthcare, retail, and manufacturing.

This state is for families and healthcare workers who want affordability relative to income and top-tier medical access. It trades away tax efficiency—the 9.85% top rate is the highest on this list—and mild winters. Compared to Florida, Minnesota offers a lower median home price and better schools, but a significantly colder climate and higher income taxes. It is ideal for those who prioritize community and healthcare over tax savings.

7. Colorado

Colorado ranks seventh because it combines a flat 4.4% income tax with a diversified aerospace, tech, and energy economy along the Front Range. The median home price is ~$580,000, reflecting strong demand and 300-plus sunny days in many areas. The state offers exceptional outdoor recreation and a healthy, active lifestyle. Unemployment remains low, and the economy is resilient.

This state is for outdoor enthusiasts and tech workers who value sunshine and mountain access. It trades away affordability—the ~$580,000 median home is among the highest here—and the altitude above 5,000 feet can be a challenge. Compared to Minnesota, Colorado offers a lower income tax and better climate, but a higher median home price and less healthcare density. It is best for those who can pay for lifestyle and recreation.

8. Washington

Washington ranks eighth because it has no state income tax, though high earners face a capital-gains tax, and the tech economy is anchored by Microsoft and Amazon. The median home price is ~$600,000, with costs falling sharply outside the Seattle metro. The state offers strong job growth and a progressive economic profile. However, the capital-gains tax and Seattle-level housing prices temper the no-income-tax advantage.

This state is for tech professionals and high earners who can leverage Seattle's job market while avoiding wage taxes. It trades away affordability—the ~$600,000 median home is the highest here—and the capital-gains tax reduces savings for the wealthy. Compared to Colorado, Washington offers no income tax but a higher median home price and more rain. It is ideal for those who prioritize tech careers and are willing to pay for housing.

9. North Carolina

North Carolina ranks ninth because it offers a flat 4.25% income tax, declining annually, with a median home price around $370,000. Charlotte anchors banking, while the Research Triangle drives pharma and research, and manufacturing spans the state. The cost of living remains below the national average, and job growth is steady. It provides a balanced mix of urban and rural opportunities.

This state is for families and professionals seeking affordability with a growing economy. It trades away the top-tier education and healthcare systems of New England states. Compared to Washington, North Carolina offers a significantly lower median home price and a lower income tax rate, but a weaker tech sector and fewer coastal amenities. It is best for those who want a low-cost, diversified economy without extreme weather.

10. Virginia

Virginia ranks tenth because it combines a top income-tax rate of 5.75% with high median incomes from the DC-adjacent federal, defense, and Northern Virginia tech economy. The median home price is ~$390,000, though Northern Virginia runs well above that. The state offers strong schools and a stable job market. Its proximity to Washington, D.C., provides unique employment opportunities.

This state is for federal employees, defense contractors, and tech workers who value job stability and education. It trades away tax efficiency—the 5.75% top rate is significant—and affordability in the DC suburbs. Compared to North Carolina, Virginia offers higher median incomes but a higher income tax and home prices. It is ideal for those who prioritize career access to the federal government over low taxes.

How we ranked these

The ranking measures the full package of livability: K-12 and higher education quality, healthcare access and outcomes, economic strength (median income, job growth), safety, and affordability (median home price, cost of living, tax burden). Each metric is weighted to reflect its impact on daily life, with education and healthcare given the highest weights due to their long-term effects on residents' well-being and financial stability.

Deliberately ignored were subjective preferences that cannot be quantified, such as climate tolerance, cultural fit, and proximity to family. These factors are highly personal and vary widely among individuals, making them unsuitable for a general ranking. Also excluded were short-term fluctuations in housing markets and temporary tax changes, as they do not reflect the stable, long-term conditions that matter for a state's overall livability.

What to look for

When choosing between these states, the real decision is between paying for top-tier services or keeping more of your income. Massachusetts offers unmatched education and healthcare but demands a high income and home price. Tennessee provides a tax-friendly environment and lower costs but with fewer elite institutions. Your choice should hinge on your career stage, family plans, and whether you can leverage remote work to arbitrage a coastal salary with a Tennessee cost structure.

The most common mistake is focusing solely on the tax rate or home price without modeling your total after-tax, after-housing, after-insurance costs. A no-income-tax state can lose its advantage if property taxes, sales taxes, or insurance premiums are higher. Conversely, a high-tax state like Minnesota might offer a lower home price that offsets the tax burden. Always calculate your real monthly expenses in a specific town, not the state median.

Related questions

What is the single best state to live in overall for 2027?

Massachusetts, on the strength of number-one-ranked schools, top-tier healthcare access, and high median incomes near $96,000. The catch is cost: a median home around $600,000 and a 5% flat income tax (plus a millionaire surtax).

Which state gives the best value?

Tennessee. No state income tax on wages, a ~$340,000 median home, and a cost of living roughly 10% below the national average, paired with real job growth in Nashville, Memphis, and Chattanooga.

Do no-income-tax states actually save money?

Often, for high earners — but not always. States replace that lost revenue through higher sales, property, or capital-gains taxes and, in Florida, steep insurance. Model your total cost, not just the tax line.

Are these rankings stable for a few years?

The relative strengths — Massachusetts for education and healthcare, Tennessee for value, Utah for growth — tend to hold across years even as exact home prices and tax rates drift slightly. Re-check the numbers before you commit.

How does Massachusetts compare to New Hampshire for families?

Massachusetts offers superior schools and healthcare but with a higher cost of living and income tax. New Hampshire has no income or sales tax, lower crime, and is more affordable, but you sacrifice some top-tier education options and may commute to Boston for work.

Is Florida a good choice despite hurricane risks?

Florida has no income tax and a moderate median home price of $400,000, but rising property-insurance costs can offset savings. It's ideal if you value warm weather and don't mind the disaster risk, but model insurance premiums into your budget.

What makes Utah a top pick for young professionals?

Utah combines a strong tech economy (Silicon Slopes), low unemployment, and a young population. The flat 4.55% income tax and $520,000 median home price are reasonable, and you get access to five national parks for recreation.

How does Washington's tax system work without an income tax?

Washington has no state income tax, but it imposes a capital-gains tax on high earners and relies on high sales and property taxes. Housing is expensive near Seattle, but costs drop sharply outside the metro, making it a mixed bag for affordability.

FAQ

What is the best state to live in overall in 2027?

Massachusetts ranks first overall for its top-tier schools, the nation's best healthcare access, and high median incomes above $96,000. The trade-off is a high cost of living, including a median home price near $600,000 and a 5% flat income tax with a surtax on income over $1 million.

Which state offers the best value for the money?

Tennessee. It combines no state income tax, a median home price around $340,000, and a cost of living roughly 10% below the national average, all while adding jobs across healthcare, automotive, and logistics. It suits remote workers and families seeking low taxes with a moderate climate.

How are these states ranked?

On the full package — education, healthcare access, economic strength, safety, and affordability — rather than any single metric. That's why a pricey state like Massachusetts and an affordable one like Tennessee can both rank near the top for different reasons.

Are home prices affordable everywhere within these states?

No. Prices vary widely inside each state: coastal Massachusetts far exceeds its inland towns, and Tennessee's cities cost more than its rural regions. Always price three to five comparable homes in the specific town you're targeting before trusting a state median.

Do all these states charge income tax?

Some do, some don't. Tennessee, Florida, and Washington have no state income tax on wages; Massachusetts is a flat 5%, Minnesota rises to 9.85%, and Virginia tops out at 5.75%. States without income tax recover the revenue through sales, property, or capital-gains taxes.

Can I trust these rankings for the next few years?

They're built on current data for home prices, taxes, school quality, and healthcare, and the relative strengths of these states are expected to stay stable. Exact figures will shift, so re-verify home prices and tax rates before making a move.

What is the best way to decide between a high-tax and low-tax state?

Model your actual after-tax, after-housing, after-insurance monthly cost in each finalist state using your real income. A no-income-tax win can evaporate against a $6,000 annual Florida insurance premium or a Colorado mortgage on a $580,000 home. Compare total costs, not just tax lines.

Should I rent before buying in a new state?

Yes. Renting through one full season — a Minnesota winter, a Florida hurricane season, or a Colorado altitude adjustment — reveals in months what no ranking can tell you. A lease is trivially cheaper to exit than a mortgage, and you'll avoid buying in a place you can't tolerate.

How important is climate in the ranking?

Climate is the one thing money can't fix, so it's a critical filter. Florida heat, Minnesota winters, and Colorado's altitude rule out many buyers regardless of the spreadsheet. Consider your tolerance before comparing other metrics.

What are the hidden costs in no-income-tax states?

States like Florida, Washington, and Tennessee recover lost income tax revenue through higher sales, property, or capital-gains taxes. Florida also has sharply rising property-insurance costs from hurricane risk. Always calculate your total tax and insurance burden, not just the income tax line.

Sources

• https://www.usnews.com/news/best-states
• https://taxfoundation.org/data/all/state/
• https://www.census.gov/programs-surveys/acs
• https://www.zillow.com/research/data/
• https://www.bls.gov/lau/
• https://www.wallethub.com/edu/best-states-to-live-in/62617
• https://www.kff.org/statedata/

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