US money guide
The no-income-tax states — what moving is really worth
It's the daydream every high earner in California and New York has had: same job, same pay, no state income tax. The savings are real — but so are the things nobody mentions in the group chat.
The states with no income tax on wages
Nine states don't tax earned income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. (Washington taxes some capital gains, and New Hampshire has historically taxed investment income rather than wages.)
What it's actually worth
The saving scales with income and depends enormously on where you're leaving. Someone on $200,000 total compensation in California pays roughly $14,000 a year in state tax. Move to Texas and that's simply gone — more than $1,100 a month, for the identical job.
Leaving a moderate-tax state is a different story. From Pennsylvania's flat 3.07%, the same move saves a fraction of that. The headline "no income tax" matters far less than the rate you're escaping.
See your own number →Enter your pay and we'll rank every state by what you'd take home.What claws it back
- Property tax. Texas and New Hampshire have some of the highest effective property tax rates in the country. On a family home that can wipe out much of an income tax saving.
- Sales tax. Tennessee and Washington lean heavily on sales tax, which hits everything you buy.
- Housing costs. The popular destinations got popular. Austin, Miami, Nashville and Seattle have all seen housing costs climb hard.
- Insurance. Home insurance in Florida is a serious line item, not a rounding error.
The rules that catch people out
Two things surprise movers. First, residency is about facts, not intent — high-tax states audit departures and look at where you actually spend your days, where your family lives and where your life is centred. Second, equity can follow you: RSUs and options are often taxed partly by the state where you worked while they vested, so leaving doesn't always escape tax on grants you already earned.
The honest verdict
For a high earner leaving California, New York, New Jersey or Oregon, the saving is genuinely large and worth taking seriously. For most people on moderate incomes leaving a moderate-tax state, income tax is a smaller factor than what a house costs when you get there. Run both numbers before you run a moving van.
Written in plain English by mytakehome.money. General information, not financial advice — check anything important at gov.uk or with a qualified adviser.