State Tax Rate Comparison Calculator 2025

Compare income tax rates, sales tax, and property tax across all 50 states. Make informed decisions about where to live, work, or retire based on comprehensive tax analysis and potential savings

Compare State Tax Rates

💰 Your Income Information

Your gross annual income for tax comparison
Your tax filing status
Annual retirement income (pensions, 401k withdrawals)
Annual Social Security benefits

🗺️ States to Compare

Select up to 5 states to compare (your current state and potential destinations)

🏠 Additional Factors

Estimated home value for property tax comparison
Annual spending for sales tax calculation

State Tax Rate Comparison Results

Understanding State Tax Differences 2025

Types of State Taxes

🏛️ State Income Tax

Personal income tax rates vary dramatically by state. Nine states have no state income tax, while others have rates reaching over 13%.

  • No Income Tax: AK, FL, NV, NH, SD, TN, TX, WA, WY
  • Flat Tax: Some states use a single rate for all income levels
  • Progressive Tax: Most states use graduated rates based on income

🛒 Sales Tax

State sales tax rates range from 0% to over 7%, with local taxes potentially adding more.

  • No Sales Tax: Delaware, Montana, New Hampshire, Oregon
  • Low Sales Tax: 1-4% in several states
  • High Sales Tax: 6%+ in many states, 10%+ with local taxes

🏠 Property Tax

Property tax rates and assessment practices vary significantly, affecting homeownership costs.

  • Low Property Tax: Hawaii, Alabama, Louisiana
  • High Property Tax: New Jersey, Illinois, New Hampshire
  • Assessment: Methods and frequencies vary by state

2025 State Tax Highlights

🚫 No State Income Tax States

Alaska: No income tax, oil dividend payments
Florida: No income tax, higher sales tax
Nevada: No income tax, tourism-based revenue
New Hampshire: No income tax on wages, taxes dividends/interest
South Dakota: No income tax, low overall tax burden
Tennessee: No income tax on wages (as of 2021)
Texas: No income tax, higher property taxes
Washington: No income tax, high sales tax
Wyoming: No income tax, mineral extraction revenue

📈 Highest Income Tax States

California: Up to 13.3% (14.4% with mental health tax)
Hawaii: Up to 11%
New York: Up to 10.9% (higher with NYC taxes)
New Jersey: Up to 10.75%
Oregon: Up to 9.9%
Minnesota: Up to 9.85%

Factors Beyond Income Tax

🎯 Overall Tax Burden

Consider all taxes combined:

  • Income tax (state and local)
  • Sales and use tax
  • Property tax
  • Vehicle registration and fees
  • Excise taxes (gas, alcohol, tobacco)

🎁 Tax Benefits

States offer various tax advantages:

  • Retirement income exemptions
  • Social Security tax treatment
  • Military pension exemptions
  • Homestead exemptions
  • Senior citizen deductions

💼 Business-Friendly Policies

For entrepreneurs and business owners:

  • Corporate income tax rates
  • Business personal property tax
  • Inventory taxes
  • Franchise taxes
  • Workers' compensation costs

Retirement Tax Considerations

📊 Retirement Income Treatment by State

🏆 Retirement-Friendly States

States that don't tax retirement income:

  • Alaska: No state income tax
  • Florida: No state income tax
  • Nevada: No state income tax
  • South Dakota: No state income tax
  • Tennessee: No state income tax
  • Texas: No state income tax
  • Washington: No state income tax
  • Wyoming: No state income tax
💰 Partial Retirement Tax States

States with limited taxation of retirement income:

  • Georgia: $65,000 exemption per person over 65
  • Michigan: Exemption for public pensions
  • Pennsylvania: No tax on retirement distributions
  • Alabama: Exemptions for various retirement income
  • Hawaii: Partial exemptions for retirement income

Cost of Living Considerations

When comparing states, consider that lower taxes may be offset by:

  • Housing Costs: States with no income tax often have higher property values
  • Utilities: Energy costs vary significantly by region
  • Healthcare: Medical costs and insurance premiums vary
  • Transportation: Gas prices, vehicle costs, and public transit options
  • Quality of Life: Education, infrastructure, and public services

Making Your Decision

1. Calculate Total Tax Impact

Use this calculator to estimate your total state tax burden including income, sales, and property taxes.

2. Consider All Costs

Factor in cost of living differences, housing costs, and quality of life factors beyond taxes.

3. Plan for the Future

Consider how tax laws might change and how your income/tax situation may evolve over time.

4. Consult Professionals

For major relocations, consult with tax professionals and financial advisors familiar with multi-state taxation.

💡 Using This Calculator

This calculator helps you compare the tax implications of living in different states:

  • Income Analysis: Enter your various income sources for accurate calculations
  • State Selection: Choose up to 5 states to compare side-by-side
  • Additional Factors: Include property value and spending for comprehensive analysis
  • Results Interpretation: Review both annual tax amounts and effective rates
  • Long-term Planning: Consider how results might change as income or life situation changes

Related State Tax Calculators

Residency Tax Calculator

Calculate tax implications when changing state residency, including part-year resident calculations and domicile considerations.

Remote Work Tax Calculator

Determine state tax obligations when working remotely across state lines with complex multi-state tax scenarios.

Multi-State Tax Comparison

Advanced comparison tool for complex multi-state tax situations including reciprocity agreements and tax credits.

Frequently Asked Questions

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Note that New Hampshire taxes dividends and interest income.

Property tax rates vary from under 0.3% in Hawaii to over 2.4% in New Jersey. However, property values and exemptions also affect the actual tax burden. Consider both the rate and typical home values in your comparison.

Not necessarily. States without income taxes often have higher sales taxes, property taxes, or other fees. Consider your total tax burden, cost of living, quality of life, and job opportunities before making decisions based solely on income tax rates.

State treatment of retirement income varies widely. Some states don't tax any retirement income, others provide partial exemptions, and some tax it as regular income. Social Security benefits are only taxed by a handful of states.

Consider cost of living, housing prices, job opportunities, healthcare quality and costs, education systems, climate, infrastructure, and quality of life factors. Lower taxes may be offset by higher costs in other areas.