Comparisons
Best US States for Take-Home Pay — Ranked
How no-income-tax states stack up, and why the highest take-home isn't always the best deal once cost of living is counted.
By Praveen · 8 min read · Reviewed April 2026
Why your state matters as much as your salary
Two Americans earning the same $100,000 can end up thousands of dollars apart in take-home pay, purely because of where they live. Federal income tax and FICA are identical nationwide, but state income tax ranges from nothing at all to north of 13% at the top in California. For a remote worker free to choose where to live, closing that gap is one of the largest, easiest wins available — often bigger than a pay rise once tax is accounted for.
The catch is that 'best take-home' and 'best value' are not the same thing. A state can claw back its income-tax saving through higher property or sales taxes, and an expensive no-tax city can erase the benefit in rent. The ranking below therefore starts with tax, then layers on the cost of living that actually decides how far the money goes.
| State | Note |
|---|---|
| Texas | No income tax; higher property tax |
| Florida | No income tax; popular with retirees |
| Washington | No income tax; high Seattle costs |
| Nevada | No income tax; tourism-funded |
| Tennessee | No earned-income tax |
| Others | AK, NH, SD, WY |
The nine states with no income tax
Nine states levy no tax on wage income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. On the same salary, residents of these states keep more of their paycheck than someone in California or New York — often thousands of dollars a year.
For high earners especially, the difference is large: a 10%+ top state rate in California versus 0% in Texas is a meaningful chunk of income.
But take-home isn't the whole story
No-income-tax states still need revenue, so they often lean on higher property taxes (Texas), sales taxes (Washington) or specific levies. And the highest-take-home states aren't always the cheapest to live in — Washington has no income tax but expensive Seattle housing.
The real winner is a low-tax state with a reasonable cost of living. That's why Texas and Florida cities have attracted so many movers, while expensive no-tax cities offer a smaller real gain.
How to rank them for yourself
Don't rank states by tax rate alone. Take your salary, compute take-home in each state with our calculator, then divide by the local cost of living — especially rent. A slightly higher tax in a much cheaper city can leave you better off.
For remote workers who can live anywhere, this calculation is one of the highest-value financial decisions you can make.
Related
Frequently Asked Questions
+Which US state has the best take-home pay?
The nine no-income-tax states (Texas, Florida, Washington, Nevada, Tennessee, Alaska, New Hampshire, South Dakota, Wyoming) leave the most of your paycheck. But factor in property/sales taxes and cost of living — a cheaper low-tax city often beats an expensive one.
+Do no-income-tax states have higher other taxes?
Often, yes. They raise revenue through higher property taxes (Texas) or sales taxes (Washington) instead. The income-tax saving is still real, but the total tax picture is closer than the headline suggests.
Estimate only — not tax advice. Figures are estimates based on publicly available tax rules and may not reflect your full circumstances. See our methodology & sources (last reviewed June 2026). Always confirm with an official tax authority or a licensed adviser before making decisions.