Best US States for Take-Home Pay in 2026

Your take-home pay on the same gross salary can vary by thousands of dollars depending on which US state you live (and work) in. The reason is simple: some states have no income tax, while others tax at rates up to 13.3 %. If you are choosing where to live—or evaluating remote work options—understanding the state tax landscape is one of the most impactful financial decisions you can make.

The no-income-tax states

Nine states currently have no state income tax on wages: 1. Alaska 2. Florida 3. Nevada 4. New Hampshire (taxes only interest and dividends, not wages) 5. South Dakota 6. Tennessee 7. Texas 8. Washington 9. Wyoming

If you live and work in one of these states, the only income tax you pay is federal (plus FICA). On a $80,000 salary, that means roughly $2,000–$5,000 more per year in take-home compared to high-tax states—money that goes to your savings, investments, or daily spending.

The highest-tax states

On the other end, these states have the highest top marginal income tax rates (as of 2025/26): - California: up to 13.3 % - Hawaii: up to 11 % - New Jersey: up to 10.75 % - Oregon: up to 9.9 % - Minnesota: up to 9.85 % - New York: up to 10.9 % (plus NYC city tax for residents) - Vermont: up to 8.75 %

Top marginal rates only apply to income above certain thresholds, so your effective state tax rate at a mid-range salary ($60,000–$100,000) is lower. But the difference is still substantial. Compare $80,000 after tax in California with $80,000 in Texas using our Net Salary Calculator—the gap is real.

How flat-tax states compare

Some states use a flat income tax rate (the same rate regardless of income): - Illinois: 4.95 % - Colorado: 4.40 % - Pennsylvania: 3.07 % - Michigan: 4.05 % - Indiana: 3.05 % - Utah: 4.65 %

Flat-tax states are generally in the middle—more than no-tax states but less than the high-bracket progressive states. They are predictable: if you earn $80,000 in Illinois, your state income tax is roughly $3,960 (4.95 %).

Take-home is not the whole picture

A state with no income tax might make up for it with higher property taxes (Texas), higher sales taxes (Washington), or higher costs of living (Hawaii has no income tax but is extremely expensive). Low-tax states also may have fewer public services, public transit options, or social safety nets—which might mean you spend more out of pocket for things that are publicly funded elsewhere.

The best way to compare is to look at net pay plus cost of living. Our Cost of Living Calculator lets you compare any two cities, and our Job Offer Compare combines take-home pay and cost of living into one clear comparison.

What about remote workers?

If you work remotely, your tax obligation is generally based on where you live, not where your company is headquartered. So a remote worker in Texas earning a San Francisco salary pays zero state income tax—a significant advantage. However, some states have complex rules around remote work and nexus (where you have "tax presence"), so it is worth confirming with a tax professional, especially if you split time between states.

The bottom line

For raw take-home pay, no-income-tax states win every time: Florida, Texas, Washington, Tennessee, and Nevada are the most popular choices. But factor in cost of living, career opportunities, lifestyle, and other taxes, and the picture gets more nuanced. Use our Salary Calculator to compare any two states, then layer in cost of living with our Cost of Living Calculator for the full picture.

For more detailed breakdowns, see our guides on $100,000 after tax in Texas, $50,000 after tax in Florida, and $70,000 after tax in California.