State Tax Comparison Calculator

Nine states currently have no individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Note that New Hampshire taxes interest and dividend income, though it is phasing that out. While these states collect no income tax, they may offset lost revenue through higher sales taxes, property taxes, or other fees.

State income tax is layered on top of federal income tax and FICA (Social Security and Medicare) taxes. Depending on your income and the state, state tax can add anywhere from 0% to over 13% of your taxable income. State taxes are generally deductible on your federal return up to the $10,000 SALT cap, which partially offsets the state-level cost for taxpayers who itemize deductions.

Moving to a no-income-tax state can produce meaningful savings, especially at higher income levels, but it is rarely the only factor to consider. Cost of living, property taxes, sales taxes, housing costs, and quality of public services all vary significantly between states. Use this calculator to quantify the income tax difference, then weigh that against other financial and lifestyle factors before making a decision.

Generally, you owe income tax to the state where you physically perform your work, not necessarily where your employer is based. If you work remotely from one state for a company headquartered in another, you typically owe tax only to your state of residence. However, some states have "convenience of the employer" rules that can tax income earned remotely if you could have worked from the employer's office. Always consult a tax professional if you work across state lines.