When considering total tax per capita, Tasmania collects the least tax revenue per resident among all Australian states. When considering tax as a proportion of the state's economy (GSP), the Northern Territory is the lowest.
Budget papers show South Australia is a relatively low-taxing jurisdiction – the lowest-taxing mainland state.
Hobart, Tasmania, is widely recognized as the cheapest major city, but smaller regional towns in Queensland and South Australia can offer even lower living costs.
At the bottom, Alaska has the lowest tax burden at roughly 4.9%, largely because it has no state income tax and lower overall levies. States with no income tax (like Texas, Florida, and Washington) generally show much lower tax burdens.
Yes, $70k is a fair salary in Australia, often near the median income, making it a decent living for a single person, especially outside major cities, but it can be tight in expensive areas or for those with high living costs like mortgages, with full-time averages now closer to $90k-$100k.
The average Australian full-time worker is now earning more than $2000 a week for the first time in history. New figures from the Australian Bureau of Statistics (ABS) show the average ordinary full-time weekly earnings for adults hit $2011.40 before tax in May.
How to avoid paying higher-rate tax
States with the heaviest tax burden:
There are nine states without a state income tax:
Among the countries with the lowest tax rates in the world are Malta, Cyprus, Andorra, Montenegro and Singapore. Aside from zero income tax, in Antigua and Barbuda, individuals are also free from paying taxes on wealth, capital gains, and inheritance.
New South Wales (NSW): Thriving Cities and Expanding Regional Appeal. New South Wales remains one of Australia's most in-demand property markets, anchored by Sydney's global status and supported by high levels of infrastructure spending, employment diversity, and strong rental demand.
The cheapest places to rent in Australia vary, but generally, regional towns in South Australia, Queensland, and Western Australia offer the lowest rents, while Hobart (Tasmania) is often the most affordable capital city, followed by Adelaide, with suburbs like Melton (VIC) and Gagebrook (TAS) being particularly cheap within their capital cities. Expect to find the absolute lowest prices in very remote areas, while major cities have affordable pockets further from the CBD.
TOP 7 Cheapest Places to Live in Australia
From low property prices to affordable living costs, these areas provide excellent opportunities for first-time buyers and anyone looking to save.
Tips to Paying Less Tax
Below is a detailed breakdown of the ten most affordable states to live in 2025:
Nevada, Washington, Texas, Florida, Tennessee, Wyoming, Alaska, South Dakota and New Hampshire.
Hawaii property owners enjoy the lowest property tax rates in the United States, largely due to the state's thriving tourism industry that generates significant tax revenue. Additionally, high property values in the Aloha State allow it to collect adequate property tax revenue while keeping its rates extremely low.
Highest Taxed Countries 2026
The State-Wise Reality. Assuming only 5% people pay tax - the gap is wild. Delhi tops the list at ₹1.8 lakh per person, while UP is last at just ₹4,000.
You may be able to reduce your taxable income by maximizing contributions to retirement plans and health savings accounts. Tax-loss harvesting, asset location, and charitable giving are other tax strategies to consider to potentially lower your tax bill.
Pensions - Articles - Eight tips to beat the taxman this April