Quick Answer
State income tax rates range from 0% (nine states) to 13.3% (California). The median state has a top rate of 6.5%. A worker earning $75,000 pays $0 in Texas but $6,814 in Oregon and $3,281 in Colorado — a $6,814 annual difference between highest and lowest.
Best Answer
Sarah Chen, CPA
Workers comparing states for job opportunities or considering relocating
2026 state income tax landscape
State income taxes fall into four categories:
No state income tax (9 states): Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
Flat tax states (9 states): Colorado (4.4%), Illinois (4.95%), Indiana (3.23%), Iowa (3.9%), Kentucky (4.5%), Michigan (4.25%), North Carolina (4.75%), Pennsylvania (3.07%), Utah (4.85%)
Progressive tax states (32 states + DC): Rates increase with income, from lows like North Dakota (1.1%-2.9%) to highs like California (1%-13.3%)
Limited tax states: New Hampshire (5% on interest/dividends only), Tennessee (no tax as of 2021)
State tax rate rankings (top marginal rates)
Real-world impact: $75,000 salary comparison
Here's what a single filer earning $75,000 pays in state income tax across different states:
High-tax states:
Medium-tax states:
Low-tax states:
No-tax states:
Don't forget about sales tax and property tax
State income tax is only part of the picture. States with no income tax often have higher sales or property taxes:
Total tax burden matters more than income tax alone. According to the Tax Foundation, these states have the highest total tax burdens (income + sales + property):
1. New York (12.75%)
2. Hawaii (12.19%)
3. Maine (11.14%)
4. Vermont (10.75%)
5. Connecticut (10.44%)
Key factors when comparing states
What you should do
When evaluating job offers or moves, calculate total take-home pay, not just the salary. A $80,000 offer in Texas could give you more spending power than $90,000 in California once you factor in state taxes. Use our paycheck calculator to compare real take-home pay across states.
Key takeaway: State income taxes range from 0% to 13.3%, creating up to $6,800 annual difference for a $75,000 earner. But total tax burden including sales and property taxes matters more than income tax alone.
Key Takeaway: A $75,000 earner pays $0-$6,814 in state income tax depending on location, but total tax burden including sales/property taxes provides the full picture.
Tax impact comparison for $75,000 earner across different state tax structures
| Tax Structure | Example States | Annual State Tax | Biweekly Impact | Total Tax Burden Rank |
|---|---|---|---|---|
| No Tax | TX, FL, WA, NV | $0 | $0 | Low-Medium |
| Low Flat (3-4%) | PA, IN, MI | $2,300-$3,200 | $88-$123 | Low-Medium |
| Medium Flat (4-5%) | CO, NC, UT | $3,300-$3,750 | $127-$144 | Medium |
| Progressive (Low) | ND, AZ, NM | $2,800-$4,200 | $108-$162 | Medium |
| Progressive (High) | OR, CA, NY, MN | $4,800-$6,800 | $185-$262 | High |
More Perspectives
Sarah Chen, CPA
Remote workers who can choose where to live and want to optimize their tax situation
The remote worker's tax arbitrage opportunity
As a remote worker, you have unprecedented flexibility to optimize your tax situation by choosing where to live. Here's how to think strategically about state taxes:
High-earning remote workers benefit most from no-tax states. If you earn $150,000+ and work remotely, moving from California to Texas could save you $8,000+ annually in state income tax alone.
Best no-tax states for remote workers
1. Texas: No state tax, major cities with good infrastructure, moderate cost of living outside cities
2. Florida: No state tax, no tax on retirement income, growing tech hubs in Miami/Tampa
3. Washington: No state tax, Seattle tech scene (though expensive), strong infrastructure
4. Tennessee: No income tax, low cost of living, Nashville growing as tech hub
5. Nevada: No state tax, no corporate tax, Las Vegas has lower cost of living
Watch out for these gotchas
Employer location still matters sometimes. A few states try to tax remote workers if their employer is based there (like New York's "convenience rule"), but this is rare and often challenged.
Temporary moves don't count. You need to establish true residency — change voter registration, driver's license, bank accounts. Most states require 183+ days of presence.
Some high-tax states are still worth it. California's 13.3% rate might be worth it if you're in tech and can earn $250,000+ due to salary premiums and networking effects.
Calculate the real savings
Don't just look at income tax. Compare total cost of living:
Key takeaway: Remote workers earning $100,000+ can save $3,000-$8,000+ annually by choosing no-tax states, but factor in total cost of living and career opportunities.
Key Takeaway: Remote workers can save $3,000-$8,000+ annually by choosing no-tax states, with Texas, Florida, and Washington offering the best combinations of savings and amenities.
Sarah Chen, CPA
Workers who moved states and need to understand their new tax situation
Your first year in a new state: what to expect
Moving states creates a complex tax situation that affects both your paycheck withholding and year-end filing. Here's what changes:
Paycheck impact is immediate. Your employer should start withholding your new state's taxes right after you update your address. If you moved from Florida (0% tax) to Colorado (4.4% flat), expect your biweekly paycheck to drop by about $115 on a $65,000 salary.
You'll file multiple state returns. For the year you move, you'll typically file:
Tax planning mistakes to avoid
Don't ignore mid-year moves. If you moved from a high-tax state (like California) to a low-tax state (like Texas) mid-year, you might need to adjust your withholding to avoid overpaying.
Keep detailed records. Document your exact move date, as this determines how much income each state can tax. Moving on January 2nd vs. December 30th can make a huge difference in your tax bill.
Update your W-4 promptly. Many people forget to give their employer the new state's withholding form, leading to under-withholding and surprise tax bills.
Common scenarios and impacts
California to Texas (high to no tax): Immediate paycheck increase of 6-9%, but you still owe California tax on pre-move income
Texas to New York (no to high tax): Painful paycheck reduction of 4-8%, plus you might owe estimated taxes if withholding isn't enough
Any state to Oregon: Significant paycheck impact due to Oregon's high progressive rates kicking in at low income levels
Key takeaway: Moving states affects your paycheck immediately and creates complex filing requirements, with potential savings or costs of $2,000-$6,000+ annually depending on the move.
Key Takeaway: State moves immediately impact paychecks and require filing multiple state returns, potentially saving or costing $2,000-$6,000+ annually.
Sources
- Tax Foundation State Tax Rankings — Comprehensive state tax rate comparisons and rankings
- IRS Publication 17 — Your Federal Income Tax Guide
Reviewed by Sarah Chen, CPA on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.