Why State Taxes Matter for Your Salary
Where you live can significantly impact how much of your paycheck you actually keep. State income tax rates range from 0% (in states like Texas, Florida, and Washington) to over 13% (California's top bracket). For a $100,000 salary, that difference can mean thousands of dollars annually.
Common State Comparisons
Popular comparisons people make include:
- California vs. Texas — High-tax progressive vs. no income tax
- New York vs. Florida — Progressive tax (up to 10.9%) vs. no income tax
- Illinois vs. Indiana — Neighboring states with different flat rates (4.95% vs. 3.05%)
- Oregon vs. Washington — High state tax vs. no income tax (across the Columbia River)
- Maryland vs. Virginia — Both progressive but different brackets and rates
Factors Beyond State Income Tax
When comparing states, remember that income tax is just one piece of the puzzle:
- Cost of living — A no-tax state might have higher housing costs
- Property taxes — Texas and New Hampshire have high property taxes despite no income tax
- Sales tax — States without income tax often rely more heavily on sales tax
- Local taxes — Cities like New York City and Philadelphia add their own income taxes
Our comparison tool focuses on income tax and FICA to give you a clear picture of your paycheck impact. For a complete analysis, consider consulting a financial advisor who can factor in your full financial picture.