I had a vague understanding that different states had different levels of taxes (wow Florida with that no-income tax woot woot!), but never went deeper. The rise of remote work in the last couple years brought this question into sharper focus:
Given a remote worker allowed to live in any state, with salary not adjusted, how does their tax burden vary?
I found a handy online calculator for the base data, ran it for a variety of salaries, then did some simple calcs on the aggregate across states & salary buckets.
Buckets I chose:
[ℹ️] If you want to dive deeper into the data for your exact salary, I highly recommend checking out that calculator, because they also provide extra information, like how much a marginal salary increase will net you. Example:
For instance, an increase of $100 in your salary will be taxed $25.15, hence, your net pay will only increase by $74.85.
src .
This table goes through and compares the best & worst amounts of take-home pay for each of the salary buckets. My personal takeaways:
$75k
base salary in Hawaii and then moved to Florida, I’d have an extra $5,659.00
to spend on plastic trinkets from Amazon. Wild!$3,335.00
. A couple grand ain’t nothing, but that’s in best case scenario of highest taxes to average - which won’t be a lot of people. I haven’t done the calculations for averaging the difference between every combination of states, but it would likely be $2-4k
.salary bucket | best | worst | best_pct | worst_pct | best_state | worst_state | diff $ | diff_pct_of_base_pay | median $ | median diff $ | mean $ |
---|---|---|---|---|---|---|---|---|---|---|---|
50k | $41,935.00 | $38,313.00 | 16.10% | 23.40% | Florida | Hawaii | $3,622.00 | 7.24% | $39,842.00 | $2,093.00 | $40,129.00 |
75k | $59,995.00 | $54,336.00 | 20.00% | 27.60% | Florida | Hawaii | $5,659.00 | 7.55% | $56,660.00 | $3,335.00 | $57,063.86 |
100k | $77,582.00 | $69,819.00 | 22.40% | 30.20% | Florida | Oregon | $7,763.00 | 7.76% | $72,946.00 | $4,636.00 | $73,473.90 |
125k | $94,710.00 | $84,336.00 | 24.20% | 32.50% | Florida | California | $10,374.00 | 8.30% | $88,827.00 | $5,883.00 | $89,406.49 |
150k | $111,984.00 | $98,902.00 | 25.30% | 34.10% | Florida | Oregon | $13,082.00 | 8.72% | $104,797.00 | $7,187.00 | $105,466.33 |
200k | $147,899.00 | $129,626.00 | 26.10% | 35.20% | Florida | California | $18,273.00 | 9.14% | $137,999.00 | $9,900.00 | $138,976.90 |
250k | $179,657.00 | $156,269.00 | 28.10% | 37.50% | Florida | California | $23,388.00 | 9.36% | $167,282.00 | $12,375.00 | $168,291.27 |
300k | $211,416.00 | $182,913.00 | 29.50% | 39.00% | Florida | California | $28,503.00 | 9.50% | $196,387.00 | $15,029.00 | $197,606.22 |
I was then curious about how states vary in ranking as income increases. My personal takeaways:
28
), New Jersey (25
), and California (22
) had the largest change in ranking across the 8 salary buckets. Seems like those are states that are pretty decent to be in at “common” salary bands, but if you’re crazy rich the taxes are giving you a hard time.⚠️ It was mentioned to me that Washington has some FMLA Tax that doesn’t technically count as state tax, but which should end up demoting it on this list. I couldn’t find any specific % numbers to include, but if you have more info I’d appreciate if you reached out!
5
places - which to me feels like a fairly consistent set of rankings. I have no stats background, so just nod along if that’s wildly innacurate 😅.Lowest | Highest | Diff | |
---|---|---|---|
Florida | 1 | 1 | 0 |
Nevada | 2 | 2 | 0 |
New Hampshire | 3 | 3 | 0 |
South Dakota | 4 | 4 | 0 |
Tennessee | 5 | 5 | 0 |
Texas | 6 | 6 | 0 |
Wyoming | 7 | 7 | 0 |
Alaska | 8 | 8 | 0 |
Washington | 9 | 9 | 0 |
North Dakota | 10 | 10 | 0 |
New Jersey | 11 | 36 | 25 |
Ohio | 12 | 17 | 5 |
Arizona | 11 | 13 | 2 |
Louisiana | 14 | 16 | 2 |
Pennsylvania | 12 | 15 | 3 |
Indiana | 13 | 16 | 3 |
Vermont | 17 | 45 | 28 |
Arkansas | 18 | 34 | 16 |
Missouri | 19 | 26 | 7 |
New Mexico | 20 | 25 | 5 |
North Carolina | 21 | 24 | 3 |
Oklahoma | 19 | 22 | 3 |
Rhode Island | 17 | 27 | 10 |
Alabama | 14 | 24 | 10 |
Colorado | 18 | 25 | 7 |
Iowa | 26 | 36 | 10 |
Mississippi | 20 | 27 | 7 |
Michigan | 16 | 28 | 12 |
California | 29 | 51 | 22 |
Delaware | 30 | 38 | 8 |
Idaho | 31 | 40 | 9 |
Kansas | 30 | 33 | 3 |
West Virginia | 33 | 40 | 7 |
Wisconsin | 30 | 34 | 4 |
Maryland | 24 | 35 | 11 |
Virginia | 34 | 39 | 5 |
Georgia | 33 | 37 | 4 |
Kentucky | 23 | 38 | 15 |
Nebraska | 39 | 43 | 4 |
Illinois | 22 | 40 | 18 |
Maine | 41 | 46 | 5 |
Utah | 26 | 42 | 16 |
Massachusetts | 29 | 43 | 14 |
Montana | 39 | 44 | 5 |
New York | 42 | 46 | 4 |
Minnesota | 44 | 49 | 5 |
Washington DC | 47 | 49 | 2 |
South Carolina | 42 | 48 | 6 |
Connecticut | 43 | 49 | 6 |
Oregon | 50 | 51 | 1 |
Hawaii | 47 | 51 | 4 |
Want to play with the data yourself? Make a copy of the Google Sheet source and go wild! Questions? ideas? Let me know what you come up with on Twitter .
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