Best States for Roth IRA Conversions
Converting a traditional IRA to a Roth IRA triggers income tax on the converted amount. In states with no income tax, you save 5–13% on the conversion compared to high-tax states. Timing a conversion when living in (or moving to) a no-income-tax state can save tens of thousands. This guide ranks states by Roth conversion friendliness.
- Alaska ranks #1 with the lowest top tax rate at 0.00%.
- California ranks last at 13.30% — the highest among all states.
- The top 5 states are Alaska, Florida, Nevada, New Hampshire, South Dakota.
- All data is sourced from verified government databases and updated for 2026.
Top 3 States
All 50 States Ranked
Lowest to highest by top tax rate
| # | State | Top Tax Rate | Tax Type | Cost of Living | Calculator |
|---|---|---|---|---|---|
| 1 | Alaska | 0.00% | none | 125.9 | Roth Conversion Calculator |
| 2 | Florida | 0.00% | none | 102.8 | Roth Conversion Calculator |
| 3 | Nevada | 0.00% | none | 104.2 | Roth Conversion Calculator |
| 4 | New Hampshire | 0.00% | none | 112.6 | Roth Conversion Calculator |
| 5 | South Dakota | 0.00% | none | 92.6 | Roth Conversion Calculator |
| 6 | Tennessee | 0.00% | none | 89.7 | Roth Conversion Calculator |
| 7 | Texas | 0.00% | none | 93.9 | Roth Conversion Calculator |
| 8 | Washington | 0.00% | none | 110.7 | Roth Conversion Calculator |
| 9 | Wyoming | 0.00% | none | 95.2 | Roth Conversion Calculator |
| 10 | North Dakota | 1.95% | flat | 92.5 | Roth Conversion Calculator |
| 11 | Arizona | 2.50% | flat | 102.2 | Roth Conversion Calculator |
| 12 | Indiana | 3.05% | flat | 90.5 | Roth Conversion Calculator |
| 13 | Pennsylvania | 3.07% | flat | 98.7 | Roth Conversion Calculator |
| 14 | Ohio | 3.50% | progressive | 90.8 | Roth Conversion Calculator |
| 15 | Iowa | 3.90% | flat | 90.1 | Roth Conversion Calculator |
| 16 | Kentucky | 4.00% | flat | 90.3 | Roth Conversion Calculator |
| 17 | Louisiana | 4.25% | progressive | 91.1 | Roth Conversion Calculator |
| 18 | Michigan | 4.25% | flat | 91.4 | Roth Conversion Calculator |
| 19 | North Carolina | 4.25% | flat | 95.1 | Roth Conversion Calculator |
| 20 | Arkansas | 4.40% | progressive | 89 | Roth Conversion Calculator |
| 21 | Colorado | 4.40% | flat | 105.1 | Roth Conversion Calculator |
| 22 | Utah | 4.65% | flat | 101.3 | Roth Conversion Calculator |
| 23 | Oklahoma | 4.75% | progressive | 86.6 | Roth Conversion Calculator |
| 24 | Missouri | 4.80% | progressive | 89.8 | Roth Conversion Calculator |
| 25 | Illinois | 4.95% | flat | 96.4 | Roth Conversion Calculator |
| 26 | Alabama | 5.00% | progressive | 88.1 | Roth Conversion Calculator |
| 27 | Mississippi | 5.00% | progressive | 83.3 | Roth Conversion Calculator |
| 28 | West Virginia | 5.12% | progressive | 84.1 | Roth Conversion Calculator |
| 29 | Georgia | 5.39% | flat | 93.4 | Roth Conversion Calculator |
| 30 | Kansas | 5.70% | progressive | 86.3 | Roth Conversion Calculator |
| 31 | Maryland | 5.75% | progressive | 115.4 | Roth Conversion Calculator |
| 32 | Virginia | 5.75% | progressive | 103.7 | Roth Conversion Calculator |
| 33 | Idaho | 5.80% | flat | 97.7 | Roth Conversion Calculator |
| 34 | Nebraska | 5.84% | progressive | 90.8 | Roth Conversion Calculator |
| 35 | Montana | 5.90% | progressive | 101.6 | Roth Conversion Calculator |
| 36 | New Mexico | 5.90% | progressive | 94.6 | Roth Conversion Calculator |
| 37 | Rhode Island | 5.99% | progressive | 107.8 | Roth Conversion Calculator |
| 38 | South Carolina | 6.40% | progressive | 95 | Roth Conversion Calculator |
| 39 | Delaware | 6.60% | progressive | 101.5 | Roth Conversion Calculator |
| 40 | Connecticut | 6.99% | progressive | 112.8 | Roth Conversion Calculator |
| 41 | Maine | 7.15% | progressive | 109.4 | Roth Conversion Calculator |
| 42 | Wisconsin | 7.65% | progressive | 93.3 | Roth Conversion Calculator |
| 43 | Vermont | 8.75% | progressive | 114.5 | Roth Conversion Calculator |
| 44 | Massachusetts | 9.00% | flat | 135 | Roth Conversion Calculator |
| 45 | Minnesota | 9.85% | progressive | 96.8 | Roth Conversion Calculator |
| 46 | Oregon | 9.90% | progressive | 113.1 | Roth Conversion Calculator |
| 47 | New Jersey | 10.75% | progressive | 115.2 | Roth Conversion Calculator |
| 48 | New York | 10.90% | progressive | 123.8 | Roth Conversion Calculator |
| 49 | Hawaii | 11.00% | progressive | 193.3 | Roth Conversion Calculator |
| 50 | California | 13.30% | progressive | 142.2 | Roth Conversion Calculator |
Methodology
How we collected and ranked the data
States ranked by top marginal income tax rate (ascending). Lower-tax states are more favorable for Roth conversions since the conversion amount is taxed as ordinary income. No-income-tax states offer the biggest advantage. Data from IRS, Tax Foundation.
Get Weekly Financial Insights
State-specific tax updates, calculator tips, and money-saving strategies — free, no spam.
No spam, ever. Unsubscribe anytime. We respect your privacy.
Compare Two States
Compare taxes, housing, cost of living, and more between any two states.
View all 107 state comparisonsFrequently Asked Questions
Why does state matter for Roth conversions?
When you convert a traditional IRA to Roth, the entire converted amount is taxed as ordinary income in the year of conversion. In a state with 10%+ income tax, a $100,000 conversion costs an extra $10,000+ in state taxes compared to doing the same conversion in a no-income-tax state like Texas or Florida.
Should I move to do a Roth conversion?
Some retirees strategically time Roth conversions during years they live in no-income-tax states. Moving to Florida, Texas, Nevada, or another no-tax state before converting can save significant money on large conversions. However, state residency rules and domicile requirements must be genuinely met.
Is there a limit on Roth conversions?
No, there is no annual limit on how much you can convert from a traditional IRA to a Roth IRA. However, the entire amount is added to your taxable income, potentially pushing you into a higher bracket. Many advisors recommend phased conversions over multiple years to manage the tax impact.