Salary by State Comparison

The single largest controllable variable in your take-home pay is what state you live in. State income tax rates range from 0% (9 states including Texas, Florida, Washington, Nevada) to over 13% in California's top bracket. That delta alone can change a $150,000 gross salary into $125,000 in California vs $137,000 in Texas — before even considering cost of living.

This tool compares a given salary's purchasing power across two states, accounting for state income tax. For a more complete metro-level comparison with rent and groceries, use the City vs City Cost Comparison.

Nine US states have no personal income tax on wage income as of 2026:

• Alaska, Florida, Nevada, New Hampshire (wages only, interest/dividends taxed), South Dakota, Tennessee, Texas, Washington, Wyoming

These states make up the revenue through other taxes: Texas via property tax (2.0%+ effective in some counties), Nevada via gaming and sales tax, Florida via tourism-related taxes and high sales tax, Washington via sales tax (9.5%+ in Seattle). The net effect for a high-earner renter is usually positive — the income tax savings outweigh the other taxes.

For homeowners in Texas or Florida (high property tax states), the calculation is closer. A $650,000 home in Texas with 2.5% property tax owes $16,250/yr in property tax alone, compared to $6,000/yr in a 1% property tax state.

Seven states have top brackets over 9%:

• California (13.3%), Hawaii (11%), New Jersey (10.75%), Oregon (9.9%), Minnesota (9.85%), New York (10.9% including NYC), District of Columbia (10.75%)

These rates apply only to income above high thresholds (California's 13.3% applies above $1M for single filers). For middle-income earners, effective rates are much lower — a $120,000 income in California has an effective state rate of about 6.5%.

High-tax states often provide substantial services (better schools, infrastructure, safety nets) that low-tax states don't. For families with kids in high-performing school districts, the tax cost may be offset by not paying private school tuition. For retirees or single workers, the calculation is less favorable.

Property tax. Ranges from under 0.5% (Hawaii, Alabama) to over 2% (New Jersey, Illinois). On a $500,000 home, that's a $2,500-$10,000/yr delta.

Sales tax. 0-10%+ depending on state and local. Tennessee has 9.55% average combined sales tax but 0% income tax. If you spend a lot, sales tax matters more than income tax.

Capital gains tax. California, Oregon, and a few others tax capital gains at ordinary income rates. Washington has a 7% capital gains tax for gains over $262,000/yr. Florida and Texas have no capital gains tax. For investors and executives with RSU income, this is a massive factor.

Estate tax. Twelve states have estate or inheritance taxes. For high-net-worth planning, this can influence where you retire.

If you work remotely for an employer in State A while living in State B, you typically owe income tax to State B (your state of residence). Some states have "convenience of the employer" rules (New York, Pennsylvania, Connecticut, Delaware, Nebraska) that tax remote workers based on employer state.

This can create dual-tax situations — being taxed by both your work state and your residence state. Reciprocity agreements exist between some state pairs (Pennsylvania-New Jersey, Washington DC-Maryland/Virginia). For most others, a credit for taxes paid to another state prevents true double taxation, but the paperwork is complex.

If you're considering moving out of a high-tax state while working for an in-state employer, consult a CPA about your specific situation. Simply changing your mailing address doesn't change your residency status for tax purposes — states use multiple factors (days present, home ownership, voting registration) to determine residency.

2020-2025 saw massive migration from high-tax states (California, New York) to no-tax states (Florida, Texas) — driven partly by remote work, partly by cost of living, partly by the 2017 SALT cap which limited the deduction for state and local taxes to $10,000 on federal returns.

For high earners who itemize, the SALT cap means state tax above $10,000 is fully non-deductible. A $250,000 earner in California pays ~$16,000 in state tax, of which $6,000 is federally deductible and $10,000 is not. Moving to Florida saves the full $16,000 in state tax plus the federal cost of the non-deductible portion.

Before making this move: verify residency rules (California especially aggressive in auditing "part-time" residents), model the full cost including property tax and insurance (Florida's hurricane-zone home insurance is a real cost), and ensure your employer permits remote work from the target state.

This is not tax, legal, or financial advice. State tax rules, rates, and reciprocity agreements change frequently. Remote work tax residency is particularly complex and depends on your specific situation. For any significant move or tax planning decision, consult a CPA or tax attorney in both your current and target states. This tool provides directional comparisons based on top-bracket rates; effective rates for most workers are lower.