State Income Tax Comparison 2025: No Tax vs. High Tax States
State Income Tax Comparison 2025
Where you live can cost or save you thousands of dollars per year in taxes — sometimes $10,000 or more at higher incomes. Here is the complete guide to state income taxes in 2025.
States With No Income Tax (2025)
| State | Notes |
|---|---|
| Alaska | No income or sales tax; oil revenue funds much of government |
| Florida | No income tax; higher property taxes in many areas |
| Nevada | No income tax; high sales tax (8.23% avg) |
| New Hampshire | No tax on wages; taxes dividends/interest |
| South Dakota | No income tax |
| Tennessee | No tax on wages (interest/dividend tax eliminated 2023) |
| Texas | No income tax; high property taxes |
| Washington | No income tax (capital gains tax exists for gains >$250K) |
| Wyoming | No income tax |
States With Flat Income Tax Rates
| State | Flat Rate | Notes |
|---|---|---|
| Arizona | 2.5% | All income above minimum |
| Colorado | 4.40% | Flat rate for all income |
| Georgia | 5.39% (becoming flat) | Transitioning to flat tax |
| Idaho | 5.8% | Flat rate |
| Illinois | 4.95% | Flat rate, constitutional constraint |
| Indiana | 3.15% | Plus county tax (0.5-3%) |
| Kentucky | 4.00% | Flat rate |
| Massachusetts | 5.00% | Flat (9% on long-term capital gains) |
| Michigan | 4.05% | Flat rate |
| Mississippi | 5.00% | Phase-out in progress |
| North Carolina | 4.50% | Scheduled to decrease |
| Pennsylvania | 3.07% | Flat; one of the lowest |
| Utah | 4.55% | Flat rate |
States With Progressive Income Tax (Top Rates)
| State | Top Rate | Income Threshold |
|---|---|---|
| California | 13.3% | $1M+ (12.3% at $625K+) |
| Hawaii | 11.0% | $400,000+ |
| New Jersey | 10.75% | $1M+ |
| Oregon | 9.9% | $125,000+ |
| Minnesota | 9.85% | $183,340+ |
| New York | 10.9% | $25M+ (6.85% starts at $215K) |
| Vermont | 8.75% | $204,000+ |
| Wisconsin | 7.65% | $374,600+ |
| Iowa | 6.0% | Flat (reduced 2023) |
| Maryland | 5.75% | $250,000+ |
| Virginia | 5.75% | $17,000+ (all income above $17K) |
| Georgia | 5.39% | Transitioning to flat |
Real Dollar Comparison at Different Incomes
How much state income tax you pay on a $100,000 salary (approximate, single filer):
| State | State Tax on $100K | Annual Take-Home vs TX |
|---|---|---|
| Texas | $0 | Baseline |
| Pennsylvania | ~$3,070 | −$3,070 |
| Arizona | ~$2,500 | −$2,500 |
| Colorado | ~$4,400 | −$4,400 |
| Virginia | ~$5,750 | −$5,750 |
| Georgia | ~$5,390 | −$5,390 |
| New York | ~$6,533 | −$6,533 |
| California | ~$6,858 | −$6,858 |
| Oregon | ~$9,900 | −$9,900 |
The True Cost of High-Tax vs No-Tax States
On a $150,000 salary over a 30-year career, the cumulative state income tax difference between Texas and California (before investment returns on the saved money):
- Annual difference: ~$9,500/year (estimated)
- Over 30 years at 7% invested: approximately $950,000 more wealth in Texas
Location is one of the largest financial decisions you will make.
What High-Tax States Offer
Before purely optimizing for lower taxes, consider that high-tax states often provide:
- Better-funded public schools
- More comprehensive public transit
- Broader social services
- Higher minimum wages (increasing your employees’ cost, but also their purchasing power)
The right choice depends on personal priorities, not just the tax rate alone.
States Reducing Income Taxes (Recent Trend)
Several states have cut income taxes significantly in recent years:
- Iowa: Moved toward 3.8-4.0% flat rate
- Georgia: Phasing to a flat tax
- North Carolina: Scheduled decreases toward 2.49% by 2030
- Mississippi: Phasing out income tax on wages by 2030
Use our Paycheck Calculator to compare your take-home in any state.
See Also
Related guides
No Income Tax States: Exact Take-Home Pay at $75,000 (2026)
All 9 states with no income tax ranked by total take-home pay on a $75,000 salary. Alaska, Florida, Nevada, NH, SD, TN, TX, WA, WY — with real dollar comparisons.
Best States for High Earners: Tax Comparison for $150k–$500k Salaries (2026)
Top 5 tax-friendly states for high earners (TX, FL, NV, WA, SD) vs worst 5 (CA, NY, MN, HI, VT). At $200k, moving from CA to TX saves $30,000+ per year.
California State Tax vs Other States: How Much More Do You Pay? (2026)
California's top income tax rate is 13.3% — highest in the US. Compare CA take-home vs Texas, Florida, Nevada, Washington, and Oregon at $75k, $100k, and $150k.
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