Take-Home Pay by State: Which States Have No Income Tax?
On an $80,000 salary, the difference between living in Texas and New York City is $7,100 per year in state and local income taxes. That's $592 per month. enough to cover a car payment or max out a Roth IRA. Same salary, same job, wildly different take-home pay. For remote workers who can live anywhere, choosing the right state is one of the easiest financial optimizations available.
Here's what $80K looks like across the country, from the 9 no-tax states to the highest-tax jurisdictions.
The 9 No-Income-Tax States
| State | Income Tax | Notes |
|---|---|---|
| Alaska | 0% | No sales tax either. High cost of living in cities. |
| Florida | 0% | Popular for remote workers. Sales tax 6–7.5%. |
| Nevada | 0% | No corporate income tax either. Sales tax 6.85–8.375%. |
| New Hampshire | 0% | Taxes interest/dividends only (being phased out). No sales tax. |
| South Dakota | 0% | Low cost of living. No corporate income tax. |
| Tennessee | 0% | Phased out investment income tax in 2021. Sales tax 7–9.75%. |
| Texas | 0% | No corporate income tax. Sales tax 6.25–8.25%. High property tax. |
| Washington | 0% | High sales tax (6.5–10.25%). High property tax in Seattle area. |
| Wyoming | 0% | Lowest population of any state. Very low cost of living. |
Camila's $80K: State-by-State Comparison
Single filer, standard deduction, $80,000 salary. Federal tax and FICA are the same everywhere. Only state tax changes:
| State | State Tax | Take-Home | Monthly |
|---|---|---|---|
| Texas / Florida / WA | $0 | $67,786 | $5,649 |
| Colorado (4.4%) | $3,520 | $64,266 | $5,356 |
| North Carolina (4.4%) | $3,520 | $64,266 | $5,356 |
| Illinois (4.95%) | $3,960 | $63,826 | $5,319 |
| New Jersey (5.525%) | $3,780 | $64,006 | $5,334 |
| Oregon (9%) | $5,600 | $62,186 | $5,182 |
| California (9.3%) | $5,780 | $62,006 | $5,167 |
| New York City (combined) | $7,100 | $60,686 | $5,057 |
The spread: $7,100 per year between Texas and New York City. That's $592 per month.
But State Tax Isn't the Whole Story
- Texas: No income tax, but property tax is 1.6–2.2% of home value, one of the highest in the country.
- Washington: No income tax, but sales tax hits 10%+ in Seattle.
- Florida: No income tax and moderate property tax. But home insurance is the highest in the nation due to hurricane risk.
- New Hampshire: No income tax or sales tax. But property tax is the 3rd highest in the country.
The takeaway: no-income-tax states aren't free. They fund government through other taxes. But for high-income remote workers, the income tax savings usually outweigh the higher sales or property taxes.
When Moving for Taxes Makes Sense
For Camila at $80K, the savings of moving from New Jersey to Florida are about $3,780/year. That's meaningful but not life-changing. If she earned $150K, the savings would be closer to $8,000–$10,000. At $200K+, the difference becomes significant enough to justify a move on tax savings alone.
Camila's Decision
She moved to Tampa. Same salary, no state income tax, lower rent than New Jersey, and her parents are a two-hour drive away. Net gain: about $5,200/year between state tax savings and lower rent. She put half of it in her Roth IRA and the other half toward a vacation fund.
Frequently Asked Questions
Which state has the lowest total tax burden?
Alaska and Wyoming consistently rank lowest in total state and local taxes. But cost of living and job availability vary widely, so the "best" state depends on your situation.
Do I pay state tax based on where I live or where I work?
Generally, where you live. If you work remotely from Florida for a company in New York, you typically pay Florida's rate (0%). But some states have "convenience of the employer" rules that can complicate this. Check with a tax professional for your specific situation.
Is it worth moving to a no-tax state?
At $80K, you save $3,000–$5,000/year in income tax. At $150K+, savings jump to $8,000–$15,000. For remote workers who can live anywhere, it's often worth it. For others, factor in cost of living, property tax, and quality of life before deciding.