Where is the best place to live and pay minimal taxes?

Fools focus solely on taxes. Smart folks focus on maximizing income and let taxes fall where they may. Your spendable income AFTER taxes is what really matters.

Total taxes are hard to gauge. While a few states have no income tax, property taxes in those states tend to be breathtakingly high. Some state have no sales taxes but income taxes tend to be somewhat higher, as may be property taxes. New Hampshire likes to brag about no earned income tax (investment income IS taxed) and no sales tax, but property taxes there will leave your head spinning. And don't make the mistake of thinking that renters don't pay property taxes. Every landlord on the planet includes property taxes when setting rents.

The other thing that you have to focus on is what you get in return for your tax dollars. Wyoming and the Dakotas generally fall near the bottom of the list for total taxation, but services are nearly non-existent beyond basic education and protection (fire and police) services. Find yourself out of work and destitute through no fault of your own in those places and you'll have few options for survival. On the other hand, New York and California tend to provide a comparatively high level of services to their residents. Needless to say, those are high-tax states.

You don't "apply" for residency in US States. You are automatically a resident upon your arrival there. You generally have 30 to 60 days to sort out details such as drivers license, tags, etc. but your physical presence in the State is the only test to be a resident.

You can only be a non-resident of ANY state if you reside outside of the US and have no ties to any state. If you maintain a home, vehicle tags, drivers license, or voter registration in any state while residing outside of the US, that state will treat you as a resident and will expect you to pay income and any other taxes as they become due.

If you are a student attending school away from home or are serving in the military, your domicile (state of legal residence) does not change unless you take positive steps to change your domicile. Students generally need to leave school and remain in the state and work there for a full year in order to be granted in-state tuition rates, however. However returning to your home state after completing your education or term of military service after changing your domicile may be viewed as a tax dodge and states have been successful in recovering unpaid income taxes in that situation. CA, MA and VA are noted as particularly vicious in recovering unpaid taxes.

Taxes in Canada are quite high compared to in the US. Canada has full healthcare for its citizens though, and when you compare taxes in Canada to taxes plus health insurance in the US, Canada generally comes out as the winner. Becoming a Canadian citizen is no easy task however. It's tougher to become a Canadian citizen than a US citizen and it's much tougher to get permanent residence status in Canada than in the US unless you are married to a Canadian citizen.

Virtually every state (and Canada as well) has a website that will guide you through the income tax rules and processes. Google is your friend here. What to know about income taxes in Missouri? Google "Missouri" and "income tax" and the MODoR will be one of the first hits.