Which state has the highest income tax?

California has the highest top marginal income tax rate at 13.3%, followed by Hawaii at 11% and New York at 10.9%. However, these top rates only apply to very high earners. For a median income, Oregon and Minnesota tend to have the highest effective rates.

How much more do you take home in a no-tax state?

On a $75,000 salary, a single filer in a no-tax state takes home roughly $57,800 annually. The same worker in California takes home about $54,200, and in New York about $54,500. That is $3,000 to $3,600 more per year in a no-tax state.

Is it always better to live in a state with no income tax?

Not necessarily. States without income tax often have higher sales taxes, property taxes, or both. Texas has no income tax but property taxes average 1.47%. Washington has no income tax but combined sales tax can exceed 10%. You need to consider total tax burden, not just income tax.

Updated March 2025 · 5 min read · By Travis Cook

Best and Worst States for Take-Home Pay in 2025

Q: Which states have no income tax?

Nine states have no income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire joined the list in 2025 after repealing its interest and dividends tax.

Where you live changes your paycheck more than most people realize. On a $75,000 salary, the gap between the best and worst states is over $4,000/year. Some states take nothing from your paycheck in state income taxes, while others claim more than 7% of your gross earnings.

We ran the numbers for a single filer at $75,000 across all 50 states and DC, using 2025 federal brackets, state income tax rates, Social Security, and Medicare. Here's how every state stacks up.

The 9 States With No Income Tax

Nine states don't take a dime of income tax from your paycheck. You still pay federal taxes (everyone does), but your state gets nothing regardless of state) plus Social Security at 6.2% and Medicare at 1.45%.

On a $75,000 salary as a single filer in 2025, workers in these nine states take home approximately $57,800 per year (about $2,223 per biweekly paycheck):

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

New Hampshire is the newest member of this group, having fully repealed its interest and dividends tax effective January 1, 2025. Washington is a special case: while it doesn't tax wages, it levies a 7% tax on long-term capital gains exceeding $270,000.

Key takeaway: A worker earning $75,000 in Texas or Florida takes home roughly $3,500 more per year than the same worker in California, and about $2,800 more than someone in New York.

Top 10 States for Take-Home Pay ($75K Salary, Single Filer)

Rank	State	State Tax Rate	Annual Take-Home	Calculator
1	AK, FL, NV, NH, SD, TN, TX, WA, WY	0%	~$57,800	TX
10	North Dakota	1.95% flat	~$57,150	ND
11	Arizona	2.5% flat	~$56,800	AZ
12	Indiana	3% flat	~$56,550	IN
13	Louisiana	3% flat	~$56,550	LA
14	Pennsylvania	3.07% flat	~$56,500	PA

The no-tax states take all 9 top spots, obviously. After that, North Dakota's 1.95% flat rate makes it the cheapest state that actually taxes your income. Arizona (2.5%), Indiana (3%), and Louisiana (3%) round out the most paycheck-friendly states with income taxes.

Bottom 10 States for Take-Home Pay ($75K Salary, Single Filer)

Rank	State	Top Rate	Annual Take-Home	Calculator
42	Wisconsin	7.65%	~$54,900	WI
43	Vermont	8.75%	~$54,800	VT
44	Connecticut	6.99%	~$54,700	CT
45	New Jersey	10.75%	~$54,600	NJ
46	New York	10.9%	~$54,500	NY
47	Minnesota	9.85%	~$54,300	MN
48	Oregon	9.9%	~$54,100	OR
49	Hawaii	11%	~$53,900	HI
50	California	13.3%	~$54,200	CA
51	Maryland + county	6.5% + 3.2%	~$53,400	MD

Maryland is sneaky: the state rate looks moderate (6.5% top bracket), but every county adds its own income tax (2.25-3.2%), pushing the real combined rate close to 10%. Oregon's high rates are partially offset by the lack of state sales tax. California's 13.3% top rate only kicks in at $1 million, so at $75,000 the effective state rate is actually around 4.5%.

The Flat Tax States: Simple and Predictable

Fourteen states use a flat tax -- one rate on all income. Simple math, no bracket drama. The 2025 flat-rate states range from North Dakota's 1.95% all the way up to Massachusetts at 5% (plus a 4% millionaire surtax). Other notable flat-tax states include Illinois at 4.95%, Georgia at 5.39%, Utah at 4.5%, and Colorado at 4.4%.

Several states recently switched from progressive systems to flat taxes, including Iowa (3.8%) and Louisiana (3%), both effective in 2025. This trend toward simplification continues as states compete for residents and businesses.

The Hidden Cost: States Where Local Taxes Change Everything

The state rate isn't the full picture. Some states let cities and counties pile on their own income taxes, which can wreck your take-home pay depending on exactly where you live.

Maryland is the most significant example. All Maryland counties levy local income taxes ranging from 2.25% (Worcester County) to 3.2% (Baltimore City and several other jurisdictions). A Maryland worker in Montgomery County pays the state's top rate of 6.5% plus a 3.2% county tax, totaling 9.7% before federal taxes.

Ohio has nearly universal municipal income taxes. Most Ohio cities levy 1% to 2.5%. A worker in Columbus pays the state rate plus a 2.5% city tax. Indiana counties add 0.5% to 2.9% on top of the 3% state rate. Kentucky cities like Louisville and Lexington collect around 1% in occupational taxes. And New York City residents pay an additional 3.078% to 3.876% on top of already-high state rates.

No Income Tax Does Not Mean Low Taxes

No-income-tax states still get their money somehow. Texas has property taxes averaging 1.47% of assessed value, nearly double the national median. Washington charges combined sales taxes up to 10.5%, among the highest in the nation. Tennessee has a 7% state sales tax with local additions up to 9.75%.

According to WalletHub's total tax burden analysis, Hawaii (which has high income taxes) has the highest overall tax burden at 14% of income, while Alaska (no income tax, no sales tax, plus the Permanent Fund Dividend) has the lowest at just 4.9%.

Calculate Your Exact Take-Home Pay

Select your state for a paycheck calculator with real 2025 brackets, deductions, and local taxes built in.

Choose Your State

States That Changed Tax Rates for 2025

2025 brought several big changes. Iowa consolidated its graduated brackets into a single 3.8% flat rate. Louisiana similarly moved to a 3% flat rate from a progressive system. North Carolina lowered its flat rate from 4.5% to 4.25%, with a further drop to 3.99% scheduled for 2026. Mississippi reduced its rate from 4.7% to 4.4%. Idaho cut from 5.695% to a 5.3% flat rate.

The pattern is obvious: states are cutting income taxes and simplifying to compete for people and businesses. Multiple states have announced plans for further reductions through 2027 and beyond.

Which State Is Actually Best for Your Wallet?

Depends on your situation. If you earn $200K+, avoiding California, New York, and Minnesota saves $10,000+ per year. For median-income households, the difference between states is smaller, and factors like housing costs, property taxes, and sales taxes matter more.

Thinking about relocating? Run both states through our state paycheck calculators. Compare not just income tax but also expected property tax on your home, sales tax on everyday purchases, and cost of living differences. A $5,000 income tax savings disappears quickly if housing costs $15,000 more per year.

Sources

Tax Foundation: State individual income tax rates and brackets
U.S. Bureau of Labor Statistics: Occupational Employment and Wage Statistics by state

Sources: 2025 state income tax rates from Tax Foundation. Federal brackets from IRS Revenue Procedure 2024-40. Take-home pay estimates calculated using MayoCalc state paycheck calculators for a single filer with $75,000 gross income, no dependents, and standard deduction. Total tax burden data from WalletHub 2025. Local tax rates from individual state revenue departments.