State Tax Comparison Calculator 2025
Compare income tax rates, sales tax, property tax, and total tax burden across all US states. Find the best state for your financial situation.
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Complete State Tax Planning Guide 2025
Everything you need to know about state taxes, relocation planning, and optimizing your tax burden across states.
No Income Tax States
- Alaska - No state income tax, no state sales tax
- Florida - No state income tax, 6% state sales tax
- Nevada - No state income tax, 6.85% state sales tax
- New Hampshire - No earned income tax, taxes dividends/interest
- South Dakota - No state income tax, 4.2% state sales tax
- Tennessee - No state income tax, 7% state sales tax
- Texas - No state income tax, 6.25% state sales tax
- Washington - No state income tax, 6.5% state sales tax
- Wyoming - No state income tax, 4% state sales tax
- Higher sales tax rates to compensate for lost income tax revenue
- Higher property tax rates in some areas
- Potential for higher fees and excise taxes
- Limited state services and infrastructure funding
High Tax States to Consider
- California - Up to 13.3% (plus 1% mental health tax)
- Hawaii - Up to 11% state income tax
- New York - Up to 10.9% (plus local taxes)
- New Jersey - Up to 10.75% state income tax
- Oregon - Up to 9.9% state income tax
- Minnesota - Up to 9.85% state income tax
- Better funded public services and infrastructure
- Higher quality education systems
- More comprehensive social safety nets
- Better public transportation systems
Retirement Tax Considerations
- Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming (no income tax)
- Illinois - No tax on retirement income
- Mississippi - No tax on qualified retirement income
- Pennsylvania - No tax on retirement income
- No tax on Social Security: 38 states plus DC
- Partial tax: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont
- Full tax: Only a few states tax Social Security as regular income
- Most states tax traditional 401(k)/IRA withdrawals as income
- Roth withdrawals generally not taxed by states
- Some states offer retirement income deductions
- Military retirement often receives special treatment
Property and Sales Tax Impact
- New Jersey - 2.47% effective rate
- Illinois - 2.27% effective rate
- Connecticut - 2.14% effective rate
- New York - 1.72% effective rate
- New Hampshire - 1.86% effective rate
- Louisiana - 9.56% average combined rate
- Tennessee - 9.55% average combined rate
- Arkansas - 9.44% average combined rate
- Washington - 9.23% average combined rate
- Alabama - 9.22% average combined rate
- Income tax is just one component of total tax burden
- Property taxes can be significant for homeowners
- Sales taxes affect all consumers
- Excise taxes on gas, alcohol, tobacco vary widely
State Relocation Tax Planning
Before You Move
- Understand domicile vs. residency requirements
- Review 183-day rules for tax residency
- Plan timing of move to minimize tax impact
- Consider part-year resident filing requirements
- Defer income to lower-tax state if possible
- Accelerate deductions in high-tax state
- Consider Roth IRA conversions before moving
- Plan stock option exercises around move
- Review business entity tax implications
- Understand nexus rules for business taxes
- Consider changing business domicile
- Review employment tax obligations
During the Move
- Keep detailed records of move date
- Document new state ties (voter registration, driver's license)
- Maintain records of days spent in each state
- Save receipts for moving expenses
- File part-year resident returns in both states
- Allocate income properly between states
- Claim credit for taxes paid to other states
- Update withholding and estimated payments
- Review will and trust documents
- Update beneficiary designations
- Consider state estate tax implications
- Review power of attorney documents
After the Move
- Register to vote in new state
- Obtain new state driver's license
- Register vehicles in new state
- Update address with all financial institutions
- File required tax returns in both states
- Update tax withholding with employers
- Adjust estimated tax payments
- Review and update tax planning strategies
- Track days spent in former state
- Monitor for audit triggers
- Stay updated on tax law changes
- Review tax strategy annually
Special Situations
- May face aggressive audits from former state
- Need clear documentation of residency change
- Consider professional tax advice
- Plan for potential multi-state audits
- Focus on retirement income tax treatment
- Consider healthcare costs and taxes
- Review Social Security tax implications
- Plan for long-term care considerations
- Understand convenience of employer rules
- May owe tax to employer's state
- Keep detailed work location records
- Consider employer tax equalization policies
State Tax Comparison FAQ
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire only taxes dividends and interest income, not wages. These states often compensate with higher sales taxes, property taxes, or other fees.
To establish tax residency, you typically need to: spend more than 183 days in the new state, register to vote, get a driver's license, register vehicles, open local bank accounts, and establish other ties. Each state has specific rules, and some states are more aggressive in challenging residency changes, especially for high-income individuals.
Generally, no, but there are exceptions. You may owe taxes on income earned in your former state, and some states have "throwback" rules for certain types of income. If you maintain significant ties to your former state or spend substantial time there, you might still be considered a resident for tax purposes.
Traditional 401(k) and IRA withdrawals are generally taxed by your state of residence when you take the distribution, not where you earned the money. Roth account withdrawals are typically not taxed by states. Some states offer special treatment for retirement income, and a few states don't tax retirement income at all.
Total tax burden includes income taxes, sales taxes, property taxes, and other state and local taxes as a percentage of income. It's calculated by adding all taxes paid to state and local governments divided by total income. This gives a more complete picture than just looking at income tax rates alone.
It depends on your total financial picture. States with no income tax often have higher sales taxes, property taxes, or fees. Consider your spending patterns, property ownership, and total tax burden. Also factor in non-tax considerations like cost of living, job opportunities, climate, and quality of life.
Property tax rates vary significantly by state and locality. New Jersey has the highest effective property tax rate at about 2.47%, while Hawaii has the lowest at about 0.31%. Property taxes are primarily local taxes, so rates can vary dramatically even within the same state based on local government needs and property values.
Remote work can create complex tax situations. Some states have "convenience of employer" rules that tax income earned by residents working for out-of-state employers. You may need to file returns in multiple states and could face double taxation, though most states provide credits for taxes paid to other states. Keep detailed records of where you work.