State Taxes and Your Take-Home Pay: A 50-State Guide
In this article
The same $55,000 salary produces a noticeably different paycheck in Texas versus Oregon. The gap in state income tax alone between a no-tax state and a higher-tax state can be $3,000–$5,000 per year at a moderate income — enough to meaningfully affect your budget, your rent range, or your savings rate.
This guide explains how state income taxes work, provides an estimated effective rate for all 50 states, and shows you how to factor that into salary planning and relocation decisions.
How State Income Tax Works
State income taxes are calculated on your taxable income — typically your gross wages minus any deductions your state permits. Most states start from your federal adjusted gross income (AGI) and apply their own set of deductions and exemptions before calculating the tax.
Two key concepts to understand before reading the table below:
- Marginal rate vs. effective rate. If a state has a top bracket of 9%, that doesn't mean you owe 9% on everything you earn. You pay lower rates on income that falls within lower brackets. Your effective rate is total state tax ÷ total income — almost always meaningfully lower than the top rate.
- Flat vs. progressive structure. Some states charge a single flat percentage on all taxable income (Colorado, Illinois, Pennsylvania). Others use progressive brackets that rise with income, similar to the federal system (California, New York, Minnesota).
Our calculator uses estimated average effective rates by state. You can override this with your actual effective rate from a prior tax return if you have it — that will give you a more precise estimate.
The 9 States With No Income Tax on Wages
Nine states currently impose no broad-based individual income tax on regular wages:
- Alaska — No income tax and no state sales tax
- Florida — No income tax; has state sales tax
- Nevada — No income tax; has sales tax
- New Hampshire — No tax on wages (taxes interest and dividend income)
- South Dakota — No income tax; has sales tax
- Tennessee — Eliminated income tax on wages in 2021
- Texas — No income tax; has sales tax and relatively high property taxes
- Washington — No income tax on wages; has sales tax and a capital gains tax enacted in 2023
- Wyoming — No income tax; relatively low overall tax burden
50-State Effective Rate Guide (2024 Tax Year)
Estimated average effective state income tax rates for a single filer at $50,000 gross annual income using the standard deduction where applicable. Actual rates vary by income, deductions, and credits. Use these as planning estimates only — for precise figures, use your state's official tax calculator or consult a tax professional.
| State | Structure | Est. Eff. Rate @ $50k | Top Marginal Rate |
|---|---|---|---|
| Alabama | Progressive | 3.5% | 5.0% |
| Alaska | None | 0% | — |
| Arizona | Flat | 2.5% | 2.5% |
| Arkansas | Progressive | 3.5% | 4.4% |
| California | Progressive | 4.5% | 13.3% |
| Colorado | Flat | 4.4% | 4.4% |
| Connecticut | Progressive | 4.5% | 6.99% |
| Delaware | Progressive | 4.5% | 6.6% |
| Florida | None | 0% | — |
| Georgia | Flat | 5.49% | 5.49% |
| Hawaii | Progressive | 6.5% | 11.0% |
| Idaho | Progressive | 4.5% | 5.8% |
| Illinois | Flat | 4.95% | 4.95% |
| Indiana | Flat | 3.05% | 3.05% |
| Iowa | Flat | 3.8% | 3.8% |
| Kansas | Progressive | 4.0% | 5.7% |
| Kentucky | Flat | 4.0% | 4.0% |
| Louisiana | Progressive | 3.0% | 4.25% |
| Maine | Progressive | 5.0% | 7.15% |
| Maryland | Progressive + local | 6.5% | 5.75% + local |
| Massachusetts | Flat | 5.0% | 5.0% |
| Michigan | Flat | 4.25% | 4.25% |
| Minnesota | Progressive | 5.5% | 9.85% |
| Mississippi | Flat | 4.7% | 4.7% |
| Missouri | Progressive | 4.0% | 4.8% |
| Montana | Progressive | 4.5% | 5.9% |
| Nebraska | Progressive | 4.0% | 5.84% |
| Nevada | None | 0% | — |
| New Hampshire | Wages exempt | 0% | — |
| New Jersey | Progressive | 3.5% | 10.75% |
| New Mexico | Progressive | 4.0% | 5.9% |
| New York | Progressive + NYC | 5.0% | 10.9% |
| North Carolina | Flat | 4.5% | 4.5% |
| North Dakota | Progressive | 1.5% | 2.5% |
| Ohio | Progressive | 3.5% | 3.75% |
| Oklahoma | Progressive | 4.0% | 4.75% |
| Oregon | Progressive | 7.0% | 9.9% |
| Pennsylvania | Flat | 3.07% | 3.07% |
| Rhode Island | Progressive | 4.5% | 5.99% |
| South Carolina | Flat | 6.4% | 6.4% |
| South Dakota | None | 0% | — |
| Tennessee | None (wages) | 0% | — |
| Texas | None | 0% | — |
| Utah | Flat | 4.65% | 4.65% |
| Vermont | Progressive | 4.5% | 8.75% |
| Virginia | Progressive | 4.5% | 5.75% |
| Washington | None (wages) | 0% | — |
| West Virginia | Progressive | 4.0% | 6.5% |
| Wisconsin | Progressive | 4.5% | 7.65% |
| Wyoming | None | 0% | — |
Source: State department of revenue websites and Tax Foundation state tax rate data (2024). Effective rates are estimates at $50,000 single-filer income; rates shift at different income levels.
Real Dollar Impact by Income Level
To show how much state taxes actually change your paycheck, here are estimated annual state tax amounts for three income levels across a range of states:
| Annual Gross | Texas (0%) | Pennsylvania (3.07%) | Ohio (~3.5%) | Minnesota (~5.5%) | Oregon (~7%) |
|---|---|---|---|---|---|
| $35,000 | $0 | ~$1,075 | ~$1,225 | ~$1,925 | ~$2,450 |
| $55,000 | $0 | ~$1,689 | ~$1,925 | ~$3,025 | ~$3,850 |
| $85,000 | $0 | ~$2,610 | ~$2,975 | ~$6,290 | ~$7,225 |
At $55,000 gross, the difference between Texas and Oregon is about $3,850/year in state income tax — roughly $321 per month. That's enough to change your apartment options in most cities. However, property taxes, sales taxes, and housing costs also vary significantly, so the complete picture requires looking at the full cost-of-living difference between locations.
Flat vs. Progressive State Tax Systems
Flat tax states (like Pennsylvania, Illinois, Indiana) apply one percentage to all taxable income. This makes them predictable and sometimes favorable for middle-income earners. Pennsylvania's 3.07% flat rate is lower than most states' effective rates at the same income level.
Progressive states start lower and ramp up at higher incomes. This means lower-income workers in progressive states sometimes pay less effective state tax than in flat states — but higher earners pay more. California's top rate of 13.3% only applies to income above $1 million, so it has little impact on most workers despite getting a lot of attention.
The practical takeaway: Don't compare states by their top marginal rate. Always compare effective rates at your actual income level. The top rate and the rate you actually pay are often very different numbers.
Using State Taxes in a Relocation Decision
If you're evaluating a move tied to a new job, here is a structured approach that gives you the full picture:
- Calculate the state income tax difference using the effective rates in the table above and your expected salary in each location.
- Check property tax rates if you plan to own a home. Texas has no income tax but average property tax rates of 1.5–2.5% of assessed value — among the highest nationally. A $350,000 home in Texas could cost $5,250–$8,750/year in property taxes.
- Compare state and local sales tax rates. Washington and Nevada — both no-income-tax states — have combined sales taxes above 8–9%.
- Run a cost-of-living comparison for the specific cities involved. BLS Consumer Expenditure data, NerdWallet, and Sperling's BestPlaces all offer city-level comparisons.
- Use our calculator with each state's effective rate to see estimated take-home side by side before factoring in housing and living cost differences.
Compare your take-home by state →
Does state income tax come out of every paycheck?
Yes. In states with income tax, your employer withholds an estimated amount from each paycheck based on your state withholding form. The exact amount is reconciled when you file your state return — you may owe more or receive a refund depending on your actual tax liability for the year.
What if I work remotely for a company in a different state?
Generally, you owe income tax to the state where you physically work — your state of residence if you work from home. Some states, most notably New York, have "convenience of the employer" rules that complicate this. If your remote work situation crosses state lines, it's worth consulting a tax professional as the rules vary significantly by state.