US State Tax Comparison 2026

Why the Same Salary Pays Different Tax

Federal income tax, Social Security and Medicare are identical wherever you live in the US. State income tax is not, and it is the only line that changes in the table above — which is why the entire gap between the best and worst state is state tax alone.

Four of the states here — Texas, Florida, Nevada and Washington — levy no state income tax at all. California runs a nine-band progressive schedule from 1% to 12.3%, New York runs nine bands from 4% to 10.9%, and Illinois charges a single flat 4.95% on everything above a personal exemption.

The gap widens as income rises, because progressive states take a larger share at the top. On $60,000 the spread between best and worst is under $3,000 a year; on $150,000 it is nearly $10,000. That is the arithmetic behind the steady flow of high earners from California and New York to Texas and Florida.

Flat Tax Is Not Automatically Cheaper

The comparison produces one result that surprises almost everyone. At $60,000, Illinois — with its flat 4.95% — takes more than California, whose top rate is 12.3%. At $150,000 the order reverses and California costs considerably more.

The reason is that a progressive schedule charges its low rates first. A California earner on $60,000 pays 1%, 2%, 4% and 6% on successive slices, and only touches 9.3% at the very top of their income. A flat rate applies the same 4.95% to the first dollar and the last, so it lands hardest on the people with the least.

The practical lesson: a state's headline top rate tells you very little about your own bill. What matters is where your income sits in that state's schedule.

No Income Tax Does Not Mean No Tax

Every state has to raise revenue somehow, and the ones without an income tax simply raise it elsewhere. Before treating a move as a straight saving, weigh what this comparison does not include:

• Property tax. Texas has some of the highest effective property tax rates in the country. For a homeowner, that can consume much or all of the income tax saving.
• Sales tax. Washington and Nevada lean heavily on sales tax, which falls on everything you buy and is regressive in effect.
• Local income tax. This calculator covers state tax only. New York City levies its own income tax on top of New York State — a resident there pays considerably more than the table shows.
• Cost of living. Housing, insurance and utilities vary far more between metros than tax does. A larger take-home in a more expensive city can still leave you with less.

Tax is one input into a relocation decision, and rarely the largest. It is, however, the one that is easiest to quantify — which is what this page is for.

Remote Work and Which State Taxes You

Working remotely for a company in another state does not automatically move your tax bill. In general you owe income tax to the state where you physically perform the work, not where your employer is headquartered. Living in Texas while employed by a California business usually means no state income tax on that salary.

Two complications are worth knowing. A handful of states apply "convenience of the employer" rules that can tax a remote worker as though they were in the office state. And splitting the year between states generally makes you a part-year resident in both, requiring the income to be apportioned. If you move mid-year or work across state lines, this is a point to confirm rather than assume.

Frequently Asked Questions