Moving States? Here Is the Real After-Tax Impact on Your Paycheck

Your take-home pay depends on more than your salary. Which state you live and work in determines your state income tax, and that single variable can add or subtract thousands of dollars from your annual take-home on an identical gross salary.

The spectrum: no income tax to high income tax

Eight states levy no individual income tax on wages in 2026: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. Workers in these states keep significantly more of each paycheck than workers in high-tax states at the same gross salary.

At the other end of the spectrum:

• California: top marginal rate of 13.3% (highest in the US)
• Oregon: 9.9%
• Minnesota: 9.85%
• New Jersey: 10.75%
• New York: 10.9% (state) — plus additional New York City tax for NYC residents

For moderate-income workers ($50K–$150K), effective state tax rates are lower than marginal rates, but the differences remain material.

A concrete comparison: California vs Texas at $100,000

For a single filer earning $100,000 per year in 2026:

	California	Texas	Difference
Federal income tax	$13,170	$13,170	$0
FICA	$7,650	$7,650	$0
State income tax	~$7,029	$0	$7,029
Annual take-home	~$72,151	~$79,180	$7,029/yr
Per biweekly paycheck	~$2,775	~$3,045	$270/paycheck

The same salary, same federal taxes, same FICA — the only difference is state income tax. Moving from California to Texas adds approximately $7,029 per year in take-home pay at $100,000, or $270 per biweekly paycheck, without any change to gross salary.

What state income tax does not capture

No-income-tax states often offset their revenue loss through other taxes that affect your overall cost of living:

• Property taxes: Texas has among the highest property tax rates in the US, averaging over 1.7% of assessed value annually. High property taxes affect homeowners directly and renters indirectly through higher rent.
• Sales taxes: Washington State has a 6.5% state sales tax plus local rates (combined rates reaching 10.4% in some areas). Nevada and Tennessee also have high sales tax rates.
• Gas and vehicle taxes: Some no-income-tax states compensate through higher fuel taxes, vehicle registration fees, and similar consumption-based levies.

A complete financial analysis of a state move should consider total tax burden — income, property, sales, and other taxes — not just income tax in isolation. However, for salaried workers who rent their homes, the income tax difference is often the most direct and largest variable.

Local income taxes add another layer

Some cities and counties levy their own income taxes on top of state income taxes. This is particularly relevant for workers in:

• New York City: NYC residents pay a city income tax (up to 3.876%) on top of New York State income tax, making NYC among the highest total income tax environments in the country.
• Philadelphia: 3.74% wage tax for residents and 3.43% for non-residents.
• Columbus, Ohio: 2.5% municipal income tax.
• Many Ohio cities and most Pennsylvania municipalities levy a local earned income tax.

Moving from one of these cities to a suburb — even within the same state — can meaningfully increase take-home pay. Moving from NYC to a suburban New Jersey or Connecticut county eliminates the NYC city tax while still requiring state tax, but the net effect is often positive.

How to calculate your move

The most reliable method: enter your salary into a paycheck calculator for your current state and your prospective new state, using the same filing status and deductions. Compare the annual take-home amounts. The difference is the annual income tax impact of the move — one of the most important financial variables in a relocation decision.

ExactTakeHome covers all 51 jurisdictions (all 50 states plus Washington DC), including local taxes for New York City, Yonkers, and Philadelphia.

Frequently asked questions

Do I pay tax to the state where I work or where I live?

Generally, you pay income tax to both the state where you work and the state where you live, if they are different. Most states provide a credit for taxes paid to another state to avoid full double taxation. Remote workers who live in one state but whose employer is in another need to carefully review the residency and sourcing rules of both states.

If I work remotely for a company in California, do I owe California income tax?

Generally no, if you perform all your work outside California. California taxes non-residents only on income sourced to California (work physically performed in California). Remote workers who live and work entirely outside California and have no California-sourced income typically do not owe California income tax. However, this is a nuanced area — consult a tax professional if your situation is complex.

Does the ExactTakeHome calculator cover my city's local tax?

The calculator covers New York City resident tax, Yonkers surcharge, and Philadelphia wage tax. If you have a local tax not covered, the state calculator will show state-level results — note in the methodology page which local jurisdictions are currently included.