State Tax Comparison Guide: Income, Property & Sales Tax by State
Calculators & Tools (5)
Guides & Articles (20)
State taxes can represent a larger percentage of your total tax burden than federal income tax — especially in high-tax states like California, New York, and New Jersey. With remote work making relocation more viable than ever, understanding state tax differences is a powerful financial lever.
The State Tax Landscape
Income Tax
Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. States with income tax range from 2.5% (Arizona flat tax) to 13.3% (California's top marginal rate).
Property Tax
Property taxes vary dramatically — New Jersey averages over 2% of home value annually; Hawaii averages under 0.3%. Local levies, school district rates, and assessment practices create wide variation even within a single state.
Sales Tax
Five states have no state sales tax: Montana, New Hampshire, Oregon, Delaware, and Alaska. Combined state + local rates can exceed 10% in some jurisdictions (Louisiana, Tennessee, Arkansas).
Total Tax Burden
The "best" state for taxes depends on your income level, asset mix, and spending habits. A retiree with pension income needs a different state than a high-earning W-2 employee or a business owner with pass-through income.
Relocation Tax Analysis
Moving from a high-tax to a low-tax state is a major financial decision requiring careful analysis:
- Domicile establishment — you must genuinely change your primary residence; states aggressively audit high-income departures
- Timing matters — leaving California or New York mid-year doesn't end your tax obligation; you'll file as a part-year resident
- Source income rules — some income (rental income, business income from in-state activities) remains taxable in the original state regardless of where you live
State-Specific Highlights
California
California's 9 tax brackets peak at 13.3% on income over $1 million. The state also taxes capital gains as ordinary income. The Franchise Tax Board (FTB) aggressively pursues residents who claim to have moved.
Michigan
Michigan's 2026 fuel tax increase — from 31¢ to 52.4¢ per gallon — represents one of the largest gas tax hikes in US history. The state also eliminated the sales tax on fuel and replaced it with a wholesale component.
Property Tax: St. Louis County
Missouri's personal property tax applies to vehicles, boats, and business equipment. St. Louis County rates for 2026 include school district levies that vary by municipality.
Related Hubs
- Federal Income Tax Hub — Federal rates that interact with state taxes
- Capital Gains Tax Hub — State capital gains taxes on investment income
- Real Estate Investing Hub — Property tax impact on rental returns
- Retirement Planning Hub — State taxation of Social Security, pensions, and IRA withdrawals
