Compare Tax Burden Across Cities
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
Texas has no income tax. California takes 13%. So Texas is cheaper, right? Not always. A homeowner in Houston might pay $12,000/year in property tax on a $500,000 house. That same house in San Jose? About $5,000. When you compare city tax burden properly—income, sales, and property combined—the "no-tax" state sometimes comes out even or higher. Most people look at one tax type and stop. That's how they end up surprised by the first property tax bill.
This tool stacks all three tax layers for two cities at once. You'll see where you actually lose money and what drives the difference.
Total Tax Impact: What You Actually Pay
Your real tax burden is the sum of three things: income tax (state and local), sales tax on everyday purchases, and property tax if you own. Skip any one of these, and your comparison is incomplete.
Example: $100,000 income, $400,000 home
Austin, TX
- Income tax: $0
- Sales tax (~$25k spending): $2,100
- Property tax (1.8%): $7,200
- Total: $9,300
San Francisco, CA
- Income tax (~6% effective): $6,000
- Sales tax (~$25k spending): $2,150
- Property tax (0.7%): $2,800
- Total: $10,950
The difference is $1,650/year—not the $6,000 gap you'd expect if you only looked at income tax. Austin's high property tax eats most of California's income tax hit.
This is effective tax rate (what you actually pay), not marginal rate (the bracket you're in). Marginal rates make headlines. Effective rates matter for your budget.
State vs Local: Where the Difference Comes From
State tax gets the attention. But local taxes can swing your burden by thousands. Some cities stack income, sales, and property taxes on top of state levies. Others have no local taxes at all.
Cities with local income tax
NYC adds 3.5–3.9% on top of NY state tax. Philadelphia adds ~3.8%. Yonkers, Newark, and other metro-area cities have their own rates. If you're moving to these areas, the city tax is real money.
Local sales tax add-ons
Louisiana has a 4.45% state rate, but combined local rates push many parishes past 10%. Tennessee's state rate is 7%, but Nashville's combined rate is 9.25%. The state number understates the bill.
Property tax is almost always local
New Jersey averages 2.1%, but some towns hit 3%+. Within Texas, rates range from 1.5% to 2.5% depending on county and school district. Same state, very different bills.
When the calculator shows a breakdown, look at which layer is driving the gap. If it's property tax, your choice of neighborhood matters as much as your choice of state.
Sales and Property Taxes People Forget
Income tax dominates the relocation conversation. But sales and property taxes affect you every day—you just don't see them as clearly.
Sales tax: death by a thousand cuts
You might spend $30,000–$50,000/year on taxable goods and services. At 8%, that's $2,400–$4,000 annually—real money, just spread thin.
Some states exempt groceries (most food purchases). Others tax everything. Oregon has no sales tax at all.
Property tax: the big hit for owners
On a $400,000 home, the difference between a 0.5% rate (Hawaii) and a 2.2% rate (New Jersey) is $6,800/year. Over 10 years, that's $68,000.
If you're renting, property tax is baked into your rent. High property-tax areas have higher rents, even if you never see the bill.
The calculator estimates these based on your inputs. If you know your actual spending patterns (more or less than average on taxable goods), adjust the spending field for a more accurate picture.
Household Edge Cases (Renters, Owners, Retirees)
Your tax profile changes the math. A homeowner in New Jersey faces very different numbers than a renter in Texas. Retirees have their own set of rules.
Renters
No direct property tax bill, but it's reflected in your rent. If you're comparing two rental markets, property tax differences still matter—they show up as rent differences instead. Focus on income and sales tax as your direct burden.
Homeowners
Property tax becomes your biggest variable. A no-income-tax state with 2% property tax on a $500,000 home is $10,000/year—more than most people pay in state income tax. Run the numbers for your specific home value.
Retirees
Many states exempt Social Security from income tax. Some exempt pension income too. If your income is primarily retirement benefits, a "high-tax" state might effectively be no-tax for you. Check the specific exemptions for your income sources.
High earners
At $300,000+ income, California's top bracket (13.3%) creates serious dollars of difference. But at $80,000, the effective rate is closer to 5%. Income level changes the comparison dramatically.
Select the profile that matches your situation. The defaults assume typical deductions for each type, but your mileage will vary based on specific circumstances.
Interpreting "Low Tax" Claims
State marketing campaigns love to advertise "no income tax." Real estate agents mention "low property taxes." These claims are technically true but often misleading. Here's how to read them:
- 1."No income tax" doesn't mean low total burden. Texas, Washington, and Florida have no state income tax—but Texas has high property tax, Washington has high sales tax, and both affect your wallet.
- 2."Low property tax" often comes with high assessments. California's 1% cap sounds low, but assessed values in desirable areas can exceed $1 million. New Jersey's 2.2% on a $300,000 home might be less than California's 1% on an $800,000 home.
- 3.Rankings depend on assumptions. "Tax-friendly" lists often assume a specific income, home value, and spending pattern. If you don't match those assumptions, the ranking doesn't apply to you.
- 4.Effective rates beat marginal rates. California's 13.3% top bracket only applies above $1M. Most people pay 4–7% effective. The scary headline number isn't your number.
Run the calculator with your actual income and home value. The result will look different from generic state comparisons because it's tailored to your situation.
Quick Answers Before Relocating
Is this my actual tax bill?
No. This is an estimate based on effective rates and typical deductions. Your actual bill depends on filing status, specific deductions, credits, income sources, and local variations. Use this for comparison and planning, not filing.
Why does this differ from other calculators?
Different calculators use different assumptions about effective rates, taxable income shares, and which taxes to include. There's no single "correct" answer—they're all approximations. This tool includes income, sales, and property tax in one view, which others often don't.
Should I factor in cost of living too?
Yes. A $5,000 tax savings means nothing if rent is $10,000 higher. Use this alongside the Cost of Living Comparison tool to see the full picture. Taxes are one piece of the relocation puzzle.
What if I work remotely in a different state than my employer?
Some states tax based on employer location, not residence. New York's "convenience of employer" rule, for example, can tax remote workers living elsewhere. This calculator assumes you live and work in the same state. If your situation is more complex, consult a tax professional.
How current are the tax rates?
Rates are updated periodically based on published state and local data. Local rates can change mid-year. For a pending move, verify rates with the specific county or city tax authority before making final decisions.
What about federal taxes?
Federal taxes are the same regardless of state, so they don't affect city-to-city comparisons. This tool focuses on state and local taxes—the part that varies by location.
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.