State Income Tax: The Hidden Factor in Relocation

The States With No Income Tax

Nine states have no state income tax: 1. Texas 2. Florida 3. Nevada 4. Washington 5. Wyoming 6. South Dakota 7. Alaska 8. Tennessee (no tax on wages) 9. New Hampshire (no tax on wages)

For a $150,000 salary, moving from California to Texas could save you over $10,000 per year in state taxes alone.

But There's a Catch

States with no income tax often make up for it in other ways:

• Texas: Higher property taxes
• Washington: Higher sales tax (9.5%+ in many areas)
• Florida: Higher insurance costs

  That said, for most remote workers who rent, the income tax savings far outweigh these other costs.

  The Highest-Tax States

  If you're trying to maximize take-home pay, avoid:

1. California (13.3% top rate) 2. Hawaii (11% top rate) 3. New Jersey (10.75% top rate) 4. Oregon (9.9% top rate) 5. Minnesota (9.85% top rate)

How Much Would You Save?

Here's what a $150K earner would keep in different states:

StateState TaxAnnual Tax |-------|-----------|------------| California9.3%~$12,000 New York6.85%~$8,500 Colorado4.4%~$6,600 Texas0%$0

That's real money. Use our calculator to see exact numbers for your situation.

Making the Move

Before you relocate purely for tax reasons: 1. Make sure you actually establish residency 2. Understand the other costs (property tax, insurance) 3. Consider quality of life factors 4. Check if your employer has nexus restrictions

The Bottom Line

State income tax is one of the biggest factors in take-home pay, yet most people ignore it when planning moves. Don't leave thousands on the table—factor taxes into your relocation decision.