State Tax Ranking
See how every state compares for your income — find out where you'd pay the least (and the most) in taxes.
Key Facts About State Tax Rankings
- 1.9 states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming
- 2.California has the highest top rate at 13.3%, applying to income over $1 million
- 3.Pennsylvania and North Dakota have among the lowest non-zero flat rates in the country
- 4.The federal SALT deduction cap is $40,000 (2025, OBBBA) with a phaseout above $500,000 MAGI reverting to $10,000; MFS $20,000 / $5,000
- 5.State income tax is just one part of the total tax burden — property and sales tax also matter
Most Tax Savings
AlaskaSave $4,345/yr
Your Tax Burden
$4,3454.34% effective state rate
Federal + FICA
$20,820Same across all states
At your income of $100,000, California charges $4,345 in state income tax (4.34% effective rate).
Best option: Alaska saves you $4,345/year — With no state income tax, your take-home pay in Alaska is higher than most states. However, the cost of living — particularly housing, food, and energy — is significantly above the national average, which can offset the tax savings.
Highest tax: Oregon would cost you $2,677/year more than California.
Where your paycheck goes further than California
| # | State | State Tax | Eff. Rate | Total Tax | Take-Home | Annual Savings ▼ | |
|---|---|---|---|---|---|---|---|
| 1 | Alaska | $0 | 0.00% | $20,820 | $79,180 | +$4,345 | |
| 2 | Florida | $0 | 0.00% | $20,820 | $79,180 | +$4,345 | |
| 3 | Nevada | $0 | 0.00% | $20,820 | $79,180 | +$4,345 | |
| 4 | New Hampshire | $0 | 0.00% | $20,820 | $79,180 | +$4,345 | |
| 5 | South Dakota | $0 | 0.00% | $20,820 | $79,180 | +$4,345 | |
| 6 | Tennessee | $0 | 0.00% | $20,820 | $79,180 | +$4,345 | |
| 7 | Texas | $0 | 0.00% | $20,820 | $79,180 | +$4,345 | |
| 8 | Washington | $0 | 0.00% | $20,820 | $79,180 | +$4,345 | |
| 9 | Wyoming | $0 | 0.00% | $20,820 | $79,180 | +$4,345 | |
| 10 | North Dakota | $669 | 0.67% | $21,489 | $78,511 | +$3,676 | |
| 11 | Ohio | $1,591 | 1.59% | $22,411 | $77,589 | +$2,754 | |
| 12 | Arizona | $2,098 | 2.10% | $22,918 | $77,083 | +$2,247 | |
| 13 | Indiana | $2,475 | 2.48% | $23,295 | $76,705 | +$1,870 | |
| 14 | Louisiana | $2,517 | 2.52% | $23,337 | $76,663 | +$1,828 | |
| 15 | Pennsylvania | $2,576 | 2.58% | $23,396 | $76,604 | +$1,769 | |
| 16 | Arkansas | $2,737 | 2.74% | $23,557 | $76,443 | +$1,608 | |
| 17 | Kentucky | $2,937 | 2.94% | $23,757 | $76,244 | +$1,408 | |
| 18 | Mississippi | $2,956 | 2.96% | $23,776 | $76,224 | +$1,389 | |
| 19 | West Virginia | $3,045 | 3.05% | $23,865 | $76,135 | +$1,300 | |
| 20 | Rhode Island | $3,165 | 3.16% | $23,985 | $76,015 | +$1,180 | |
| 21 | Iowa | $3,188 | 3.19% | $24,008 | $75,992 | +$1,157 | |
| 22 | New Jersey | $3,218 | 3.22% | $24,038 | $75,962 | +$1,127 | |
| 23 | North Carolina | $3,348 | 3.35% | $24,168 | $75,832 | +$997 | |
| 24 | South Carolina | $3,405 | 3.41% | $24,225 | $75,775 | +$940 | |
| 25 | Nebraska | $3,517 | 3.52% | $24,337 | $75,663 | +$828 | |
| 26 | Oklahoma | $3,561 | 3.56% | $24,381 | $75,619 | +$784 | |
| 27 | Michigan | $3,566 | 3.57% | $24,386 | $75,614 | +$779 | |
| 28 | New Mexico | $3,569 | 3.57% | $24,389 | $75,611 | +$776 | |
| 29 | Colorado | $3,692 | 3.69% | $24,512 | $75,488 | +$653 | |
| 30 | Utah | $3,734 | 3.73% | $24,554 | $75,446 | +$611 | |
| 31 | Missouri | $3,763 | 3.76% | $24,583 | $75,417 | +$582 | |
| 32 | Wisconsin | $3,843 | 3.84% | $24,663 | $75,337 | +$502 | |
| 33 | Connecticut | $3,865 | 3.86% | $24,685 | $75,316 | +$480 | |
| 34 | Maryland | $3,933 | 3.93% | $24,753 | $75,247 | +$412 | |
| 35 | Vermont | $4,062 | 4.06% | $24,882 | $75,118 | +$283 | |
| 36 | Illinois | $4,153 | 4.15% | $24,973 | $75,027 | +$192 | |
| 37 | Alabama | $4,155 | 4.15% | $24,975 | $75,025 | +$190 | |
| 38 | Georgia | $4,187 | 4.19% | $25,007 | $74,993 | +$158 | |
| 39 | Massachusetts | $4,195 | 4.20% | $25,015 | $74,985 | +$150 | |
| 40 | Montana | $4,289 | 4.29% | $25,109 | $74,891 | +$56 | |
| 41 | CaliforniaYour state | $4,345 | 4.34% | $25,165 | $74,835 | — | |
| 42 | New York | $4,382 | 4.38% | $25,202 | $74,798 | -$37 | |
| 43 | Idaho | $4,447 | 4.45% | $25,267 | $74,733 | -$102 | |
| 44 | Delaware | $4,521 | 4.52% | $25,341 | $74,659 | -$176 | |
| 45 | Virginia | $4,567 | 4.57% | $25,387 | $74,613 | -$222 | |
| 46 | Kansas | $4,594 | 4.59% | $25,414 | $74,586 | -$249 | |
| 47 | Minnesota | $5,222 | 5.22% | $26,042 | $73,958 | -$877 | |
| 48 | Hawaii | $5,268 | 5.27% | $26,088 | $73,912 | -$923 | |
| 49 | Maine | $5,479 | 5.48% | $26,299 | $73,701 | -$1,134 | |
| 50 | District of Columbia | $5,532 | 5.53% | $26,352 | $73,649 | -$1,187 | |
| 51 | Oregon | $7,022 | 7.02% | $27,842 | $72,158 | -$2,677 |
How State Taxes Vary
No-Tax, Flat, and Progressive States
US states fall into three broad categories for income tax. Nine states charge no income tax at all, which makes them attractive for high earners looking to minimize their tax burden. Flat-tax states like Illinois (4.95%), Colorado (4.40%), and Michigan (4.25%) apply a single rate to all taxable income regardless of how much you earn. Progressive states like California, New York, and New Jersey use graduated brackets where higher income is taxed at higher rates — the same concept as the federal system.
How Moving Affects Your Tax Burden
Relocating to a lower-tax state can produce meaningful savings, especially at higher income levels. However, the decision is rarely just about income tax. You generally owe state income tax based on where you live and work, and most states require you to file a return for any year you were a resident. If you move mid-year, you may need to file part-year returns in both states. Some states also have exit-related rules, so it is important to establish genuine residency in your new state.
FICA Is the Same Everywhere
Regardless of where you live, federal payroll taxes are identical. Social Security tax is 6.2% on wages up to $176,100 (2025), and Medicare is 1.45% with no cap. An additional 0.9% Medicare surtax applies to earnings over $200,000 (single) or $250,000 (married filing jointly). These taxes do not change when you move between states, so the only variable in a state-to-state comparison is the state income tax itself.
Beyond Income Tax: The Full Picture
States without income tax often make up revenue through other channels. Texas and New Hampshire have higher-than-average property taxes. Tennessee and Washington rely heavily on sales tax. Cost of living differences — housing, groceries, healthcare — can easily outweigh income tax savings. The ranking tool above focuses on income tax, but any relocation decision should factor in property tax rates, sales tax, and overall cost of living in your target state.
State Income Tax Types
| Type | States | Rate(s) |
|---|---|---|
| No Income Tax | Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming | 0% |
| Flat Rate | Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Michigan, Mississippi, North Carolina, Pennsylvania, Utah | 2.5% - 4.95% |
| Progressive | Alabama, Arkansas, California, Connecticut, DC, Delaware, Hawaii, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Vermont, Virginia, West Virginia, Wisconsin | 1% - 13.3% |
Worked Example: $100,000 Salary in California
Consider a single filer earning $100,000 in California. After the state standard deduction, California's progressive brackets produce roughly $5,200 in state income tax, giving an effective state rate of about 5.2%. Here are the top 5 savings destinations compared to staying in California:
| Destination State | State Tax | Annual Savings vs CA |
|---|---|---|
| Texas (no tax) | $0 | ~$5,200 |
| Florida (no tax) | $0 | ~$5,200 |
| Nevada (no tax) | $0 | ~$5,200 |
| Arizona (flat 2.5%) | ~$2,500 | ~$2,700 |
| Colorado (flat 4.40%) | ~$4,400 | ~$800 |
These figures reflect state income tax only. The actual financial impact of relocating depends on property tax, sales tax, housing costs, and other factors in each destination state.
Frequently asked questions
Which states have no income tax?
Nine states have no individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire previously taxed interest and dividend income but has fully phased that out.
Which state has the highest income tax?
California has the highest top marginal income tax rate at 13.3%, applying to income over $1 million. Hawaii (11%), New Jersey (10.75%), Oregon (9.9%), and Minnesota (9.85%) also have notably high top rates.
How much could I save by moving to a no-tax state?
Savings depend entirely on your income level and current state. Someone earning $100,000 in California could save roughly $4,500-$5,500 per year in state income tax by moving to Texas or Florida. At $200,000, the savings could exceed $12,000. Use the ranking tool above with your actual income for a precise estimate.
What is the SALT deduction cap?
Under OBBBA (2025+), the State and Local Tax (SALT) deduction is capped at $40,000 per year ($20,000 if married filing separately). The cap phases out $1-for-$1 for MAGI above $500,000 ($250,000 MFS), with a floor of $10,000 ($5,000 MFS). Pre-OBBBA (2018–2024) the cap was $10,000/$5,000 with no phaseout. Without any cap, high-tax-state residents could deduct their full state tax bill from federal taxable income.
Should I consider property and sales tax too?
Yes. Income tax is only one part of the total tax picture. States with no income tax often have higher property taxes (e.g., Texas) or sales taxes (e.g., Tennessee, Washington). A complete comparison should include property tax, sales tax, and cost of living alongside income tax.
How does remote work affect state taxes?
Generally, you owe income tax to the state where you physically perform your work. If you work remotely from home, you typically owe tax to your state of residence. However, some states like New York have "convenience of the employer" rules that may tax your income even if you work remotely from another state. Consult a tax professional if you work across state lines.
Do military members pay state income tax?
Military members pay state income tax to their state of legal residence (home of record), not the state where they are stationed. The Servicemembers Civil Relief Act (SCRA) protects active-duty members from being taxed by the state where they are assigned. Many military members choose to establish residency in a no-income-tax state.
Is this calculator accurate for my situation?
This tool calculates state income tax using 2025 brackets and standard deductions for all 50 states plus DC. It provides a reliable estimate for W-2 wage income. It does not account for local taxes (e.g., New York City), state-specific credits, or non-wage income types. For a comprehensive tax plan, consult a qualified tax professional.
Sources
Key Tax Terms
Effective Tax Rate
Your total federal income tax divided by your total income, expressed as a percentage. It represents the average rate at which your income is actually taxed.
Property Tax
An annual tax levied by local governments on the assessed value of real property (land and buildings). Rates and assessment methods vary widely by jurisdiction.
Sales Tax
A consumption tax levied by state and local governments on the sale of goods and some services. Rates vary by state and locality, ranging from 0% in states with no sales tax to over 10% in some jurisdictions.
Standard Deduction
A fixed dollar amount that reduces your taxable income, available to all filers who do not itemize. For 2025, it is $15,750 for single filers and $31,500 for married filing jointly (OBBBA-adjusted).
Filing Status
Your tax classification based on marital and family situation — Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Surviving Spouse.
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