How much more does a remote worker keep in Texas vs California?

On a $100,000 salary, a remote worker domiciled in Texas keeps approximately $7,029 more per year than one in California (2026, single filer, standard withholding). The difference comes entirely from California's state income tax, which Texas does not have.

Does working remotely mean I pay taxes in the state I live or the state my employer is in?

Generally, remote workers pay income tax based on their state of domicile (where they live), not where their employer is based. However, some states have reciprocity agreements, and some require withholding based on where work is physically performed. Always verify your specific situation with a tax advisor.

Which states have no income tax for remote workers?

As of 2026, nine states do not impose a broad individual income tax on wages: Alaska, Florida, Nevada, New Hampshire (wages only), South Dakota, Tennessee (wages only), Texas, Washington, and Wyoming. Remote workers domiciled in these states avoid state income tax withholding entirely.

Does moving to a no-tax state actually save money on take-home pay?

Yes, for most workers. State income taxes are withheld from every paycheck. Moving your domicile to a no-tax state eliminates that withholding. The savings shown in this study are based on engine-calculated 2026 withholding and represent the difference in annual net pay, not total cost of living.

Remote Worker Tax Savings: How Much More You Keep by State (2026)

Name: Remote Worker Tax Savings by State 2026
Creator: ExactTakeHome
Published: 2026-06-10
License: https://creativecommons.org/licenses/by/4.0/

Verified by Abhinav Jain · Updated 2026-06-10 · Methodology

Remote workers who can choose their state of domicile have a financial decision to make: where you live affects your paycheck even if your employer and salary stay the same. Federal taxes are identical regardless of state. But state income taxes, disability insurance, and state payroll programs can add thousands of dollars of withholding each year.

This study calculates annual take-home pay for remote workers at four salary levels — $75,000, $100,000, $150,000, and $200,000 — in four no-tax states (Texas, Florida, Nevada, Washington) and four high-tax states (California, New York, Illinois, Oregon). All results use the ExactTakeHome.com paycheck engine with standard 2026 withholding, single filer, no deductions.

$75,000 Salary: Take-Home Pay by State

State	Annual Take-Home	vs. California Savings	vs. New York Savings
Texas (no tax)	$61,593	+$4,195	+$3,520
Florida (no tax)	$61,593	+$4,195	+$3,520
Nevada (no tax)	$61,593	+$4,195	+$3,520
Washington (no tax)	$61,593	+$4,195	+$3,520
California	$57,397	baseline	−$675
New York	$58,073	+$675	baseline
Illinois	$57,880	+$483	−$192
Oregon	$55,763	−$1,635	−$2,310
Minnesota	$57,303	−$95	−$770

$100,000 Salary: Take-Home Pay by State

State	Annual Take-Home	vs. California Savings	vs. New York Savings
Texas (no tax)	$79,180	+$7,029	+$4,952
Florida (no tax)	$79,180	+$7,029	+$4,952
Nevada (no tax)	$79,180	+$7,029	+$4,952
Washington (no tax)	$79,180	+$7,029	+$4,952
California	$72,151	baseline	−$2,077
New York	$74,228	+$2,077	baseline
Illinois	$74,230	+$2,079	+$2
Oregon	$71,163	−$989	−$3,066
Minnesota	$73,174	+$1,023	−$1,054

$150,000 Salary: Take-Home Pay by State

State	Annual Take-Home	vs. California Savings	vs. New York Savings
Texas (no tax)	$113,791	+$12,794	+$7,952
Florida (no tax)	$113,791	+$12,794	+$7,952
Nevada (no tax)	$113,791	+$12,794	+$7,952
Washington (no tax)	$113,791	+$12,794	+$7,952
California	$100,997	baseline	−$4,842
New York	$105,839	+$4,842	baseline
Illinois	$106,366	+$5,369	+$527
Oregon	$101,149	+$152	−$4,690
Minnesota	$104,015	+$3,018	−$1,824

$200,000 Salary: Take-Home Pay by State

State	Annual Take-Home	vs. California Savings	vs. New York Savings
Texas (no tax)	$148,927	+$18,559	+$10,952
Florida (no tax)	$148,927	+$18,559	+$10,952
Nevada (no tax)	$148,927	+$18,559	+$10,952
Washington (no tax)	$148,927	+$18,559	+$10,952
California	$130,368	baseline	−$7,607
New York	$137,975	+$7,607	baseline
Illinois	$139,027	+$8,659	+$1,052
Oregon	$131,335	+$967	−$6,640
Minnesota	$135,225	+$4,857	−$2,750

Key Finding

A $100,000 remote worker in Texas keeps approximately $7,029 more per year than the same worker in California — a 9.7% difference in take-home pay. Over a 5-year period, that gap is $35,144 in cumulative net pay.

Methodology

Salaries: $75,000, $100,000, $150,000, and $200,000 annual, single filer
Withholding: standard 2026 IRS Publication 15-T percentage method
Filing status: Single, no dependents, standard W-4
Deductions: none (no 401k, health insurance, HSA, or other pre-tax)
Local taxes: applied where the engine supports city-level withholding
Data source: ExactTakeHome.com paycheck engine (2026 tax tables)
Figures are estimates. Actual paycheck may differ based on employer setup, W-4 elections, and benefits.