Remote Worker Tax Savings: How Much More You Keep by State (2026)
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 | +$3,844 |
| Florida (no tax) | $61,593 | +$4,195 | +$3,844 |
| Nevada (no tax) | $61,593 | +$4,195 | +$3,844 |
| Washington (no tax) | $60,987 | +$3,590 | +$3,239 |
| California | $57,397 | baseline | −$351 |
| New York | $57,749 | +$351 | baseline |
| Illinois | $57,880 | +$483 | +$132 |
| Oregon | $55,763 | −$1,635 | −$1,986 |
| Minnesota | $57,303 | −$95 | −$446 |
$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 | +$5,384 |
| Florida (no tax) | $79,180 | +$7,029 | +$5,384 |
| Nevada (no tax) | $79,180 | +$7,029 | +$5,384 |
| Washington (no tax) | $78,373 | +$6,221 | +$4,576 |
| California | $72,151 | baseline | −$1,645 |
| New York | $73,796 | +$1,645 | baseline |
| Illinois | $74,230 | +$2,079 | +$434 |
| Oregon | $71,163 | −$989 | −$2,634 |
| Minnesota | $73,174 | +$1,023 | −$622 |
$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 | +$8,600 |
| Florida (no tax) | $113,791 | +$12,794 | +$8,600 |
| Nevada (no tax) | $113,791 | +$12,794 | +$8,600 |
| Washington (no tax) | $112,580 | +$11,583 | +$7,389 |
| California | $100,997 | baseline | −$4,194 |
| New York | $105,191 | +$4,194 | baseline |
| Illinois | $106,366 | +$5,369 | +$1,175 |
| Oregon | $101,149 | +$152 | −$4,042 |
| Minnesota | $104,015 | +$3,018 | −$1,176 |
$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 | +$11,816 |
| Florida (no tax) | $148,927 | +$18,559 | +$11,816 |
| Nevada (no tax) | $148,927 | +$18,559 | +$11,816 |
| Washington (no tax) | $147,438 | +$17,069 | +$10,326 |
| California | $130,368 | baseline | −$6,743 |
| New York | $137,111 | +$6,743 | baseline |
| Illinois | $139,027 | +$8,659 | +$1,916 |
| Oregon | $131,335 | +$967 | −$5,776 |
| Minnesota | $135,225 | +$4,857 | −$1,886 |
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.
Remote worker tax savings questions
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.