City Tax Burden Comparison
Estimate your combined state and local tax burden—income tax, sales tax, and property tax—and compare cities to see potential savings. This tool provides rough estimates only, not tax advice.
Compare Your Tax Burden
Enter your income, spending, and housing details to see estimated state and local tax burden. Compare cities to find potential savings.
Income Tax
State & local rates
Sales Tax
Combined rates
Property Tax
Homeowner rates
Understanding City Tax Burden Comparison: A Comprehensive Guide to State and Local Tax Planning
Understanding city tax burden comparison is essential for anyone planning a relocation, evaluating job offers, or studying tax economics, whether you're a student learning about state taxes, a professional considering a move, a researcher studying tax policy, a taxpayer planning finances, or a family evaluating relocation options. A state tax calculator helps you compare state and local tax burden between cities by estimating income tax, sales tax, and property tax impact based on your situation. Understanding how to compare city tax burdens provides valuable insights into relocation planning, but it's important to remember that these are rough estimates based on simplified effective rates and individual results may vary significantly due to deductions, credits, filing status, income sources, and other factors.
Whether you're learning about income tax by state for a school project, preparing for a relocation, researching tax economics, understanding tax differences, or simply trying to compare tax burdens, a city tax comparison tool provides valuable educational insights. Different state tax calculators use different assumptions about effective rates, taxable income shares, and spending patterns, which is why they may produce different estimates. There is no single "correct" calculation—they are all approximations based on simplified assumptions. Understanding these calculations helps you see tax burdens from multiple perspectives, not just a single number, and makes you a more informed relocation planner.
Our city tax burden comparison calculator helps you estimate your combined state and local tax burden. Simply enter your primary city and state, optional comparison city and state, annual gross income, annual taxable spending, home value (if applicable), and tax profile type (single renter, single owner, family renter, family owner), and the calculator automatically computes estimated income tax, sales tax, property tax (if applicable), total estimated tax burden, effective tax rate, and comparison metrics. The calculator shows results with detailed breakdowns, charts, and assumptions summaries to help you understand your tax burden comparison.
This sales tax calculator is perfect for anyone who wants to understand tax burdens for educational awareness, relocation planning, or financial estimation. By comparing tax estimates, you can see general estimates and understand how different tax types, locations, and profiles affect total tax burdens. Remember, these are rough educational estimates based on simplified effective rates—individual results may vary significantly. Always consult a tax professional for accurate tax planning and advice. This property tax comparison tool is for educational purposes only and does not provide tax, legal, or financial advice.
Understanding the Basics: State Income Tax, Sales Tax, Property Tax, and Tax Profiles
State Income Tax is tax on income levied by state governments. Nine states have no state income tax on wages: Alaska, Florida, Nevada, New Hampshire (taxes dividends/interest only), South Dakota, Tennessee, Texas, Washington, and Wyoming. Other states have progressive rates ranging from low (e.g., Pennsylvania 3.07% flat) to high (e.g., California up to 13.3%, New York up to 10.9%). Sales Tax combines state and local rates on taxable purchases. Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Combined rates range from 0% to over 9% (Tennessee, Louisiana). Property Tax is assessed locally based on home value, with effective rates varying from under 0.3% (Hawaii) to over 2% (New Jersey). Understanding these tax types is essential for using a city tax burden comparison calculator effectively.
State Income Tax: Understanding Effective vs. Marginal Rates
State Income Tax is tax on income levied by state governments. Marginal Tax Rate is the rate on your next dollar of income (the highest bracket you're in). Effective Tax Rate is your total tax divided by total income—what you actually pay on average. This state tax calculator uses simplified effective rates because they better represent typical tax burden for comparison purposes. Effective rates approximate what a typical filer in your income range might pay, accounting for standard deductions and typical filing patterns. This is why a city tax comparison tool uses effective rates rather than marginal rates.
Example: California has progressive income tax brackets: 1% on first $10,099, 2% on $10,100-$23,942, 4% on $23,943-$37,788, 6% on $37,789-$52,455, 8% on $52,456-$66,295, 9.3% on $66,296-$338,639, 10.3% on $338,640-$406,364, 11.3% on $406,365-$677,275, 12.3% on $677,276+, plus 1% surtax on $1M+. For a $100,000 income, the effective rate might be around 5-6% after deductions, not the 9.3% marginal rate. This demonstrates how income tax by state calculations use effective rates.
Sales Tax: State and Local Combined Rates
Sales Tax combines state and local rates on taxable purchases. Five states have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon (though Alaska allows local taxes). States like Tennessee and Louisiana have high combined rates exceeding 9%. Not all purchases are taxable—most states exempt groceries (food bought at stores), prescription medications, and some clothing. This sales tax calculator estimates what portion of your spending is likely taxable based on typical spending patterns. This is why a city tax burden comparison tool includes sales tax estimates.
Example: Tennessee has a 7% state sales tax, and many cities add 2.25% local tax, resulting in a 9.25% combined rate. If you spend $30,000 annually and 60% is taxable, taxable spending = $18,000. Sales tax = $18,000 × 9.25% = $1,665. This demonstrates how sales tax by state calculations work.
Property Tax: Local Assessment Based on Home Value
Property Tax is assessed locally based on your home's value. Rates vary widely—New Jersey averages over 2% effective rate while Hawaii is under 0.3%. Many factors affect your actual bill: assessment ratios, homestead exemptions, and local millage rates. This property tax comparison tool uses approximate effective rates for each metro area. If you're renting, property tax is effectively included in your rent (your landlord pays it and passes the cost to you). This is why a city tax burden calculator includes property tax for homeowner profiles only.
Example: New Jersey has an average effective property tax rate of about 2.1%. If your home value is $400,000, property tax = $400,000 × 2.1% = $8,400/year. This demonstrates how property tax by state calculations work.
Tax Profiles: Single Renter, Single Owner, Family Renter, Family Owner
Tax Profiles approximate different situations with different assumptions about taxable income shares, taxable spending shares, and property tax inclusion. Single Renter assumes ~80% of income is taxable (after standard deduction) and ~60% of spending is taxable, with no property tax. Single Owner assumes ~80% taxable income, ~55% taxable spending, and includes property tax. Family Renter assumes ~75% taxable income (due to family deductions) and ~55% taxable spending, with no property tax. Family Owner assumes ~75% taxable income, ~50% taxable spending, and includes property tax. These are rough approximations—your actual situation depends on specific deductions, credits, and circumstances. This is why a state tax burden calculator offers multiple tax profiles.
Effective Tax Rate: Total Burden as Percentage of Income
Effective Tax Rate is your total estimated tax burden divided by gross income, expressed as a percentage. This metric helps you understand what percentage of your income goes to state and local taxes. Effective rates vary significantly by location, income level, and tax profile. This is why a tax burden comparison tool calculates effective tax rates.
Step-by-Step Guide: How to Use This City Tax Burden Comparison Calculator
Step 1: Enter Primary City and State
Enter your primary city and state (the city you're currently in or considering). The calculator uses static effective tax rates for that city and state. Accurate city and state information ensures accurate tax rate lookups in your city tax burden comparison calculator.
Step 2: Enter Optional Comparison City and State
Optionally enter a comparison city and state to compare tax burdens side-by-side. This helps you see how tax burdens differ between locations. If you're planning a relocation, enter your current city as primary and potential destination as comparison. Accurate comparison information ensures meaningful tax burden comparisons in your state tax calculator.
Step 3: Enter Annual Gross Income
Enter your annual gross income (before taxes). This is used to calculate income tax and effective tax rate. Accurate income information ensures accurate income tax calculations in your city tax comparison tool.
Step 4: Enter Annual Taxable Spending
Enter your annual taxable spending (spending subject to sales tax). This is used to calculate sales tax. The calculator applies tax profile assumptions to estimate what portion of your spending is taxable. Accurate spending information ensures accurate sales tax calculations in your income tax by state calculator.
Step 5: Enter Home Value (If Applicable)
If you're a homeowner, enter your home value. This is used to calculate property tax for owner profiles. If you're a renter, leave this blank or enter 0. Property tax is only calculated for owner profiles. Accurate home value information ensures accurate property tax calculations in your sales tax calculator.
Step 6: Select Tax Profile Type
Select your tax profile type: Single Renter, Single Owner, Family Renter, or Family Owner. This determines taxable income share, taxable spending share, and whether property tax is included. Accurate profile selection ensures accurate tax burden calculations in your property tax comparison tool.
Step 7: Calculate and Interpret Results
Click the "Calculate Tax Burden" button. The calculator: (1) Looks up effective tax rates for your city/state. (2) Calculates taxable income and taxable spending based on profile assumptions. (3) Calculates estimated income tax, sales tax, and property tax (if applicable). (4) Calculates total estimated tax burden and effective tax rate. (5) Compares primary and comparison cities (if provided). (6) Generates assumptions summaries and key takeaways. This comprehensive calculation provides your complete tax burden comparison.
Step 8: Interpret Results in Context
Review the results: estimated income tax, sales tax, property tax (if applicable), total tax burden, effective tax rate, and comparison metrics. Remember that these are rough estimates based on simplified effective rates—actual tax liability depends on many factors: specific deductions, tax credits, filing status, other income sources, and local variations. Consider results alongside other factors: cost of living differences, job market and salary differences, quality of life factors, and proximity to family/friends. If you have questions about tax burdens, tax planning, or relocation, consult a tax professional or use this tool alongside our Cost of Living Comparison tool. Your city tax burden comparison results are a starting point, not a final answer.
Formulas and Behind-the-Scenes Logic: How City Tax Burden Comparison Calculations Work
This city tax burden comparison calculator uses simplified effective tax rates and profile assumptions to estimate tax burdens. Here's how it works:
Taxable Income and Taxable Spending Calculation: Applying Profile Assumptions
Taxable amounts are calculated based on tax profile assumptions:
Taxable Income = Annual Gross Income × Taxable Income Share (from profile)
Taxable Spending = Annual Taxable Spending × Taxable Spending Share (from profile)
Example: Single Renter profile: 80% taxable income share, 60% taxable spending share. Annual gross income $100,000, annual taxable spending $40,000. Taxable income = $100,000 × 0.80 = $80,000. Taxable spending = $40,000 × 0.60 = $24,000. This demonstrates how a state tax calculator computes taxable amounts.
Estimated Income Tax Calculation: Applying Effective Income Tax Rate
Estimated income tax is calculated as:
Estimated Income Tax = Taxable Income × (Effective Income Tax Rate % ÷ 100)
Example: Taxable income $80,000, effective income tax rate 5%. Estimated income tax = $80,000 × (5 ÷ 100) = $80,000 × 0.05 = $4,000. This demonstrates how a city tax comparison tool computes income tax.
Estimated Sales Tax Calculation: Applying Combined Sales Tax Rate
Estimated sales tax is calculated as:
Estimated Sales Tax = Taxable Spending × (Combined Sales Tax Rate % ÷ 100)
Example: Taxable spending $24,000, combined sales tax rate 8%. Estimated sales tax = $24,000 × (8 ÷ 100) = $24,000 × 0.08 = $1,920. This demonstrates how an income tax by state calculator computes sales tax.
Estimated Property Tax Calculation: Applying Effective Property Tax Rate
Estimated property tax is calculated as (only for owner profiles with home value):
Estimated Property Tax = Home Value × (Effective Property Tax Rate % ÷ 100)
Example: Home value $400,000, effective property tax rate 1.5%. Estimated property tax = $400,000 × (1.5 ÷ 100) = $400,000 × 0.015 = $6,000. This demonstrates how a sales tax calculator computes property tax.
Total Estimated Tax Burden Calculation: Summing All Tax Components
Total estimated tax burden is calculated as:
Total Estimated Tax Burden = Estimated Income Tax + Estimated Sales Tax + Estimated Property Tax
Example: Estimated income tax $4,000, estimated sales tax $1,920, estimated property tax $6,000. Total estimated tax burden = $4,000 + $1,920 + $6,000 = $11,920. This demonstrates how a property tax comparison tool computes total tax burden.
Effective Tax Rate Calculation: Total Burden as Percentage of Income
Effective tax rate is calculated as:
Effective Tax Rate % = (Total Estimated Tax Burden ÷ Annual Gross Income) × 100
Example: Total estimated tax burden $11,920, annual gross income $100,000. Effective tax rate = ($11,920 ÷ $100,000) × 100 = 11.92%. This demonstrates how a tax burden comparison tool computes effective tax rates.
Complete Worked Example: Real-World City Tax Burden Comparison
Setup: Primary city: Austin, TX. Comparison city: San Francisco, CA. Annual gross income $100,000, annual taxable spending $40,000, home value $400,000, tax profile: Single Owner.
Tax Profile Assumptions (Single Owner): 80% taxable income share, 55% taxable spending share, property tax applies.
Calculate Taxable Amounts:
- Taxable income = $100,000 × 0.80 = $80,000
- Taxable spending = $40,000 × 0.55 = $22,000
Austin, TX Calculations:
- Effective income tax rate: 0% (Texas has no state income tax)
- Combined sales tax rate: 8.25%
- Effective property tax rate: 1.8%
- Estimated income tax = $80,000 × 0% = $0
- Estimated sales tax = $22,000 × 8.25% = $1,815
- Estimated property tax = $400,000 × 1.8% = $7,200
- Total estimated tax burden = $0 + $1,815 + $7,200 = $9,015
- Effective tax rate = ($9,015 ÷ $100,000) × 100 = 9.02%
San Francisco, CA Calculations:
- Effective income tax rate: 6.5%
- Combined sales tax rate: 8.5%
- Effective property tax rate: 0.7%
- Estimated income tax = $80,000 × 6.5% = $5,200
- Estimated sales tax = $22,000 × 8.5% = $1,870
- Estimated property tax = $400,000 × 0.7% = $2,800
- Total estimated tax burden = $5,200 + $1,870 + $2,800 = $9,870
- Effective tax rate = ($9,870 ÷ $100,000) × 100 = 9.87%
Comparison: San Francisco has an estimated $855 higher annual tax burden than Austin (9.87% vs 9.02% effective rate). However, Austin has no income tax but higher property tax, while San Francisco has income tax but lower property tax. These are rough estimates based on simplified effective rates—actual tax liability depends on many factors. Always consult a tax professional for accurate tax planning. This demonstrates how a city tax burden comparison calculator works in practice.
Practical Use Cases: Real-World Scenarios for City Tax Burden Comparison
Here are detailed scenarios showing how different people might use this city tax burden comparison calculator to understand tax differences and make informed decisions:
1. Student Learning About State Taxes: Educational Tax Comparison
Emma, a college student studying economics, wants to understand tax differences using a state tax calculator. She compares: Austin, TX (no income tax, 8.25% sales tax, 1.8% property tax) vs. New York, NY (8% effective income tax, 8% sales tax, 1.2% property tax). Income $50,000, spending $20,000, no home, Single Renter profile. The calculator shows: Austin $990 total (1.98% effective), New York $3,200 total (6.4% effective). She sees that tax burdens vary significantly by location and uses this information for her economics project, while recognizing that these are estimates. This demonstrates how a city tax comparison tool helps students learn about taxes.
2. Professional Planning a Relocation: Corporate Tax Planning
Michael is planning a relocation and needs to compare tax burdens using a city tax burden comparison calculator. He compares: Seattle, WA (no income tax, 10.1% sales tax, 0.9% property tax) vs. Boston, MA (5% effective income tax, 6.25% sales tax, 1.1% property tax). Income $120,000, spending $50,000, home value $500,000, Single Owner profile. The calculator shows: Seattle $10,450 total (8.71% effective), Boston $11,625 total (9.69% effective). He records these estimates and uses them to understand general tax patterns, while recognizing that these are estimates and that he should consult a tax professional. This shows how income tax by state calculators help professionals plan relocations.
3. Researcher Studying Tax Policy: Academic Tax Analysis
Dr. Chen is researching tax policy and uses this sales tax calculator to compute tax burden estimates for various cities, income levels, and tax profiles. They find that tax burdens vary significantly by location, income level, and tax profile type. The calculator helps them understand how general tax burden calculations apply in different contexts, supporting their research on tax policy and state economics. This demonstrates how property tax comparison tools support academic research and policy analysis.
4. Family Evaluating Relocation Options: Family Tax Planning
The Johnson family is evaluating relocation options and uses a tax burden comparison calculator to compare cities. They compare: Dallas, TX (no income tax, 8.25% sales tax, 1.9% property tax) vs. Chicago, IL (4.95% effective income tax, 10.25% sales tax, 2.1% property tax). Income $150,000, spending $60,000, home value $600,000, Family Owner profile. The calculator shows: Dallas $15,390 total (10.26% effective), Chicago $18,975 total (12.65% effective). They see that Dallas has lower tax burden and use this information to budget, while recognizing that these are estimates and that actual costs may vary. This shows how state tax calculators help families plan relocations.
5. Person Comparing No-Income-Tax States: Tax-Friendly State Analysis
Sarah wants to understand no-income-tax states using a city tax burden calculator. She compares: Florida (no income tax, 7% sales tax, 0.9% property tax) vs. Nevada (no income tax, 8.25% sales tax, 0.6% property tax) vs. Texas (no income tax, 8.25% sales tax, 1.8% property tax). She sees that no-income-tax states often have higher sales taxes or property taxes to compensate, and total burden matters more than any single tax type. This shows how tax friendly states calculators help people understand tax structures.
6. Person Understanding Tax Component Breakdowns: Tax Component Analysis
James wants to understand which tax components dominate using a state tax burden calculator. He enters his city and sees: Income tax 40%, Sales tax 20%, Property tax 40%. He sees that income tax and property tax are the largest components and uses this information to understand tax structures, while recognizing that actual taxes may vary. This demonstrates how city tax comparison tools help individuals understand tax breakdowns.
7. Person Preparing for Relocation Planning Discussion: Tax Planning Preparation
Maria wants to prepare for a relocation planning discussion by understanding tax burdens using a city tax burden comparison calculator. She compares: Portland, OR (9.9% effective income tax, 0% sales tax, 1% property tax) vs. Phoenix, AZ (2.5% effective income tax, 8.6% sales tax, 0.7% property tax). Income $90,000, spending $35,000, home value $350,000, Single Owner profile. The calculator shows: Portland $10,710 total (11.9% effective), Phoenix $6,615 total (7.35% effective). She brings this information to her relocation planning discussion to understand general tax patterns, while recognizing that these are estimates and that actual taxes may vary. She discusses these estimates with tax professionals or reviews official tax sources for actual rates and requirements. This demonstrates how tax burden comparison tools help people prepare for relocation planning discussions.
Common Mistakes to Avoid in City Tax Burden Comparison
• Assuming No-Income-Tax States Have Lower Total Burden: Many people assume no-income-tax states have lower total tax burden, which is often incorrect because these states often compensate with higher sales taxes or property taxes. Don't focus on a single tax type—consider total tax burden (income + sales + property) to ensure your city tax burden comparison provides meaningful comparisons.
• Using Marginal Rates Instead of Effective Rates: Many people use marginal tax rates instead of effective rates, which can lead to overestimating tax burden in their state tax calculator. Marginal rates are the rate on your next dollar, while effective rates are what you actually pay on average. Don't use marginal rates—use effective rates to ensure your city tax comparison provides realistic estimates.
• Forgetting Local Income Taxes: Many people forget local income taxes in cities like NYC or Philadelphia, which can lead to underestimating tax burden in their income tax by state calculator. Some cities levy their own income taxes on top of state taxes. Don't forget local taxes—check if your city has local income taxes to ensure your sales tax calculator includes all taxes.
• Not Accounting for Property Tax When Renting: Many people don't account for property tax when renting, which is embedded in rent, leading to incomplete comparisons in their property tax comparison tool. If you rent, property tax is included in your rent (your landlord pays it and passes the cost to you). Don't ignore property tax for renters—it's reflected in higher rents in high property-tax areas to ensure your tax burden comparison provides complete comparisons.
• Not Considering Cost of Living Differences: Many people don't consider cost of living differences, which can make tax savings less meaningful if living costs are much higher. A $5,000 tax savings means little if rent is $10,000 higher. Don't ignore cost of living—use this tool alongside our Cost of Living Comparison tool to ensure your city tax burden calculator provides comprehensive comparisons.
• Assuming Calculator Results Are Exact: Many people assume calculator results are exact tax liability, which is inappropriate because these are rough estimates based on simplified effective rates. Don't assume results are exact—actual tax liability depends on many factors: specific deductions, tax credits, filing status, other income sources, and local variations. Your state tax calculator provides rough estimates, not exact tax liability. Always consult a tax professional for accurate tax planning and advice.
• Not Consulting Tax Professionals: Never rely solely on calculator results for tax planning or financial decisions. These are rough educational estimates based on simplified effective rates, not guarantees of actual tax liability. Tax laws change frequently, and individual circumstances vary significantly. Always consult a tax professional for accurate tax planning, filing, and advice. Your city tax burden comparison tool is a planning tool, not tax, legal, or financial advice.
Advanced Tips & Strategies for Effective City Tax Burden Comparison
• Consider Total Tax Burden, Not Just One Tax Type: Consider total tax burden (income + sales + property) when using your city tax burden comparison calculator. No-income-tax states often have higher sales taxes or property taxes to compensate. Total burden matters more than any single tax type. This ensures your state tax calculator provides meaningful comparisons.
• Use Effective Rates, Not Marginal Rates: Use effective tax rates when comparing with your city tax comparison tool. Effective rates represent what you actually pay on average, while marginal rates are the rate on your next dollar. This ensures your income tax by state calculator provides realistic estimates.
• Account for Local Income Taxes: Account for local income taxes when using your sales tax calculator. Some cities (NYC, Philadelphia) levy their own income taxes on top of state taxes. Check if your city has local income taxes to ensure comprehensive tax burden calculations. This ensures your property tax comparison tool includes all taxes.
• Consider Property Tax for Renters: Consider property tax for renters when comparing with your tax burden comparison tool. Property tax is embedded in rent (your landlord pays it and passes the cost to you), so higher property taxes are reflected in higher rents. This ensures your city tax burden calculator provides complete comparisons.
• Compare Multiple Cities: Compare multiple cities using your state tax calculator. Run the calculator multiple times with different cities to see how tax burdens vary. This helps you understand tax differences and make informed relocation decisions. Your city tax comparison tool can help you explore different cities.
• Use Alongside Cost of Living Tools: Use this tool alongside our Cost of Living Comparison tool when planning relocations. Tax burden is one factor among many—also consider cost of living differences, job market and salary differences, quality of life factors, and proximity to family/friends. This ensures your tax burden comparison provides comprehensive relocation planning.
• Consult Tax Professionals: Always consult tax professionals for accurate tax planning and advice, even after using your city tax burden comparison calculator. Calculator results are rough educational estimates based on simplified effective rates, not guarantees of actual tax liability. Tax laws change frequently, and individual circumstances vary significantly. Your state tax calculator provides estimates, but tax professionals provide accurate tax planning and advice.
Sources & References
The data and methodologies used in this tool are informed by authoritative sources on state and local taxation:
- •Tax Foundation: taxfoundation.org - Research on state tax rates, tax burden comparisons, and tax policy analysis.
- •Federation of Tax Administrators: taxadmin.org - State tax rates, revenue data, and administrative information.
- •U.S. Census Bureau - State & Local Government Finance: census.gov/programs-surveys/gov-finances - Official data on state and local tax revenue and expenditures.
- •Lincoln Institute of Land Policy - Property Tax: lincolninst.edu - Property tax data and analysis by state and locality.
- •Sales Tax Institute: salestaxinstitute.com - State and local sales tax rates and compliance information.
For Educational Purposes Only - Not Professional Advice
This calculator provides estimates for informational and educational purposes only. It does not constitute travel, financial, legal, or professional advice. Results are based on the information you provide and general guidelines that may not account for your individual circumstances. Costs, fees, and regulations change frequently. Always consult with a qualified licensed moving company or relocation specialist for advice specific to your situation. Information should be verified with official FMCSA.gov sources.
Frequently Asked Questions
Common questions about comparing tax burden across cities, state taxes, sales taxes, property taxes, and tax profiles.
How accurate are these tax burden estimates?
These are rough estimates using simplified effective tax rates, not precise calculations. Actual tax liability depends on many factors: your specific deductions, tax credits (like EITC or child tax credit), filing status, other income sources, and local variations. Use these estimates as a starting point for research, not for tax planning. Always consult a tax professional for accurate advice.
Which states have no income tax?
Nine states have no state income tax on wages: Alaska, Florida, Nevada, New Hampshire (taxes dividends/interest only), South Dakota, Tennessee, Texas, Washington, and Wyoming. However, these states often have higher sales taxes or property taxes to compensate. No-income-tax doesn't always mean lower overall tax burden.
Why doesn't this tool include federal taxes?
Federal income tax and FICA (Social Security + Medicare) are the same regardless of where you live in the US. Since we're comparing cities, we focus on state and local taxes that actually vary by location. Federal taxes typically account for the largest portion of most people's tax burden but don't affect city-to-city comparisons.
What's the difference between effective and marginal tax rates?
Marginal rate is the rate on your next dollar of income (the highest bracket you're in). Effective rate is your total tax divided by total income—what you actually pay on average. Our tool uses simplified effective rates because they better represent typical tax burden for comparison purposes.
How should renters think about property tax?
If you rent, property tax is embedded in your rent—your landlord pays it and passes the cost to you. That's why we don't show separate property tax for renter profiles. When comparing cities as a renter, the higher rent in high property-tax areas already reflects this cost indirectly.
Why do some cities with no income tax still show high total burden?
States without income tax often compensate with higher sales taxes, property taxes, or other fees. Texas, for example, has no income tax but relatively high property taxes (around 1.8% effective rate). Washington has no income tax but one of the highest sales tax rates. Total burden matters more than any single tax type.
What about local income taxes in cities like NYC or Philadelphia?
Some cities levy their own income taxes on top of state taxes. New York City adds 3-4% on top of New York State taxes. Philadelphia has a wage tax around 3.8%. Our data attempts to capture major city-specific taxes for larger metros, but some local taxes may not be fully reflected.
How do I use this information for relocation planning?
Tax burden is one factor among many. Also consider: cost of living differences (a $5,000 tax savings means little if rent is $10,000 higher), job market and salary differences, quality of life factors, and proximity to family/friends. Use this tool alongside our Cost of Living Comparison and Quality of Life tools for a complete picture.
What's included in 'taxable spending' for sales tax calculations?
Taxable spending includes most retail purchases, restaurant meals, entertainment, and services. Most states exempt groceries (food bought at stores), prescription medications, and some clothing. Our tax profile assumptions estimate what portion of your spending is likely taxable based on typical spending patterns.
Can I trust these estimates for high-income situations?
These estimates become less accurate at very high incomes ($500K+) where progressive tax brackets, alternative minimum tax (AMT), and investment income taxation create complexity. High earners should absolutely work with a tax professional who can model their specific situation accurately.
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