Moving States Tax Calculator

Every US state has its own income tax rules. Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — have no broad-based state income tax. The other 41 states (plus DC) tax wages and salaries at rates ranging from under 3% to over 13%. Moving to a lower-tax or no-tax state can substantially reduce your annual tax bill, while moving to a higher-tax state will cost you more. Federal income tax and FICA taxes remain the same regardless of where you live.

Domicile is the state you intend to make your permanent home. For state income tax purposes, you are generally taxed as a resident of your domicile state for the entire year (or a prorated portion if you moved mid-year). To establish a new domicile you typically need to physically relocate, update your voter registration, get a new driver's license, and sever ties to your prior state. High-tax states like California and New York aggressively audit former residents who claim to have moved, especially if they continue to work or own property in the prior state.

Yes. If you earn income sourced in your former state — such as wages from a job physically performed there, rental income from property, or business income — your old state can tax that income even after you move. Additionally, if you were a resident for part of the year, your old state will tax the income you earned while residing there. You may need to file part-year resident returns in both states and could qualify for a credit for taxes paid to the other state to avoid double taxation.

Remote work complicates state taxes. Some states use a "convenience of the employer" rule — most notably New York — which taxes remote workers as if they worked in the state even if they physically work elsewhere. If you move from New York but continue working remotely for a New York-based employer, New York may still claim the right to tax your wages. Always check both your employer's state rules and your new state's rules before assuming your taxes will drop after a move.