Tax Comparison Calculator — Compare Any Two States

Factors Beyond Taxes When Comparing States

While this calculator focuses on the tax differences between states, there are many other financial and lifestyle factors to consider when evaluating a potential move:

Cost of Living

A state with low taxes but high housing costs may not actually save you money. For example, Washington has no income tax, but the median home price in Seattle exceeds $800,000. Compare that to a state like Georgia, which has a moderate income tax (5.49%) but significantly lower housing costs in most areas. Always consider the complete financial picture, not just taxes.

Quality of Public Services

Higher-tax states often provide better-funded public services including schools, roads, parks, and social programs. If you have children, the quality of public schools could be worth thousands in private school tuition you would otherwise need to pay. States like Massachusetts, New Jersey, and Connecticut consistently rank among the top for public education, though they also have high tax burdens.

Job Market and Salary Levels

Salaries tend to be higher in high-tax, high-cost areas like California, New York, and Washington. A software engineer in San Francisco earning $200,000 might earn $140,000 doing the same job in Austin, Texas. The income tax savings from moving to Texas could be offset by the lower salary.

Climate and Lifestyle

Climate affects both quality of life and expenses. Heating costs in New Hampshire are significant, while air conditioning costs in Texas add up. States with mild climates may reduce utility expenses and offer more outdoor recreation options year-round.

Popular State Comparisons

These are some of the most common state tax comparisons people search for:

• California vs. Texas — The classic high-tax vs. no-tax comparison. California's 13.3% top rate vs. Texas's 0%, but Texas has much higher property taxes.
• New York vs. Florida — A popular move for retirees and remote workers. New York's 10.9% top rate (plus NYC tax) vs. Florida's 0%.
• Illinois vs. Indiana — Neighboring Midwest states with very different tax profiles. Illinois (4.95%, high property tax) vs. Indiana (3.05%, moderate property tax).
• California vs. Washington — Two West Coast tech hubs with very different tax approaches. California has high income tax; Washington has none but has high sales tax.
• New York vs. New Jersey — High-tax neighbors. New York has higher income tax; New Jersey has the nation's highest property tax.

Remote Work and State Tax Implications

The rise of remote work has made state tax planning more relevant than ever. If you work remotely for a company in one state while living in another, your tax obligations can be complex. Most states tax income based on where the work is physically performed, but some states have a "convenience of the employer" rule that can result in double taxation.

States known for this rule include New York, Connecticut, Delaware, Nebraska, and Pennsylvania. If your employer is in one of these states and you work remotely from elsewhere, you may owe taxes to both states (though credits usually prevent full double taxation).