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.
- The ranking basis, source limitations, and calculation method are documented in the Methodology section below.
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 | 129 | Roth Conversion Calculator |
| 2 | Florida | 0.00% | none | 100.7 | Roth Conversion Calculator |
| 3 | Nevada | 0.00% | none | 100.7 | Roth Conversion Calculator |
| 4 | New Hampshire | 0.00% | none | 110.1 | Roth Conversion Calculator |
| 5 | South Dakota | 0.00% | none | 94.1 | Roth Conversion Calculator |
| 6 | Tennessee | 0.00% | none | 88.9 | Roth Conversion Calculator |
| 7 | Texas | 0.00% | none | 90.7 | Roth Conversion Calculator |
| 8 | Washington | 0.00% | none | 114.6 | Roth Conversion Calculator |
| 9 | Wyoming | 0.00% | none | 93.7 | Roth Conversion Calculator |
| 10 | Arizona | 2.50% | flat | 107.6 | Roth Conversion Calculator |
| 11 | North Dakota | 2.50% | progressive | 90.7 | Roth Conversion Calculator |
| 12 | Ohio | 2.75% | progressive | 93.7 | Roth Conversion Calculator |
| 13 | Indiana | 2.95% | flat | 88.3 | Roth Conversion Calculator |
| 14 | Louisiana | 3.00% | flat | 91.1 | Roth Conversion Calculator |
| 15 | Pennsylvania | 3.07% | flat | 96.2 | Roth Conversion Calculator |
| 16 | Kentucky | 3.50% | flat | 92.5 | Roth Conversion Calculator |
| 17 | Iowa | 3.80% | flat | 88.6 | Roth Conversion Calculator |
| 18 | Arkansas | 3.90% | progressive | 89.1 | Roth Conversion Calculator |
| 19 | North Carolina | 3.99% | flat | 96.6 | Roth Conversion Calculator |
| 20 | Mississippi | 4.00% | progressive | 86.2 | Roth Conversion Calculator |
| 21 | Michigan | 4.25% | flat | 93.9 | Roth Conversion Calculator |
| 22 | Colorado | 4.40% | flat | 101.8 | Roth Conversion Calculator |
| 23 | Oklahoma | 4.50% | progressive | 83.5 | Roth Conversion Calculator |
| 24 | Utah | 4.50% | flat | 100.6 | Roth Conversion Calculator |
| 25 | Nebraska | 4.55% | progressive | 91.3 | Roth Conversion Calculator |
| 26 | West Virginia | 4.58% | progressive | 87.9 | Roth Conversion Calculator |
| 27 | Missouri | 4.70% | progressive | 88.6 | Roth Conversion Calculator |
| 28 | Illinois | 4.95% | flat | 95.1 | Roth Conversion Calculator |
| 29 | Georgia | 4.99% | flat | 90.6 | Roth Conversion Calculator |
| 30 | Alabama | 5.00% | progressive | 85 | Roth Conversion Calculator |
| 31 | South Carolina | 5.21% | progressive | 91.9 | Roth Conversion Calculator |
| 32 | Idaho | 5.30% | progressive | 101.7 | Roth Conversion Calculator |
| 33 | Kansas | 5.58% | progressive | 87.6 | Roth Conversion Calculator |
| 34 | Montana | 5.65% | progressive | 105.9 | Roth Conversion Calculator |
| 35 | Virginia | 5.75% | progressive | 99.1 | Roth Conversion Calculator |
| 36 | New Mexico | 5.90% | progressive | 89.9 | Roth Conversion Calculator |
| 37 | Rhode Island | 5.99% | progressive | 111.2 | Roth Conversion Calculator |
| 38 | Maryland | 6.50% | progressive | 121.1 | Roth Conversion Calculator |
| 39 | Delaware | 6.60% | progressive | 101.7 | Roth Conversion Calculator |
| 40 | Connecticut | 6.99% | progressive | 114.2 | Roth Conversion Calculator |
| 41 | Maine | 7.15% | progressive | 114.6 | Roth Conversion Calculator |
| 42 | Wisconsin | 7.65% | progressive | 97.4 | Roth Conversion Calculator |
| 43 | Vermont | 8.75% | progressive | 113 | Roth Conversion Calculator |
| 44 | Massachusetts | 9.00% | progressive | 147.8 | Roth Conversion Calculator |
| 45 | Minnesota | 9.85% | progressive | 93.4 | Roth Conversion Calculator |
| 46 | Oregon | 9.90% | progressive | 109.6 | Roth Conversion Calculator |
| 47 | New Jersey | 10.75% | progressive | 118.8 | Roth Conversion Calculator |
| 48 | New York | 10.90% | progressive | 124.7 | Roth Conversion Calculator |
| 49 | Hawaii | 11.00% | progressive | 184.8 | Roth Conversion Calculator |
| 50 | California | 13.30% | progressive | 140.5 | 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.
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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.