To compare salaries across cities and states, compare take-home pay first, then compare what that take-home pay has to cover. A $90,000 salary for a single filer takes home about $72,145 a year in Tennessee but about $67,549 in Minnesota, a gap of roughly $4,600 before you look at rent or other costs.
A good salary comparison by state has three layers: state income tax, local taxes and payroll items, and the cost of living. This guide walks through each one with real estimates, and shows how to figure the salary you would need in one state to match another.
Layer 1: State income tax
Federal income tax, Social Security and Medicare are the same everywhere in the U.S. for the same salary and filing status. State income tax is what changes. Nine states don't tax wages at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Others use a flat rate, and the rest use graduated brackets.
Worked example: $90,000 in five states
Here is a single filer earning $90,000, paid biweekly with no pre-tax deductions, using the paycheck calculator. Federal income tax is $421.92 per paycheck, Social Security $214.62 and Medicare $50.19 in every state. Only the state line changes:
| State | State tax structure | State tax per paycheck | Take-home per paycheck | Take-home per year |
|---|---|---|---|---|
| Tennessee | No wage tax | $0.00 | $2,774.81 | $72,145 |
| Arizona | Flat 2.5% | $78.51 | $2,696.30 | $70,104 |
| New Jersey | Brackets, 1.4% to 10.75% | $136.34 | $2,638.47 | $68,600 |
| Georgia | Flat 5.19% | $155.70 | $2,619.11 | $68,097 |
| Minnesota | Brackets, 5.35% to 9.85% | $176.79 | $2,598.02 | $67,549 |
These are estimates. Two notes: New Jersey workers also pay into state unemployment, disability and family leave insurance, and Minnesota's paid leave premium begins in 2026. Neither is included above, so actual take-home pay in those states would be somewhat lower.
Notice that New Jersey's top rate is the highest on this list, yet at $90,000 it takes less than Georgia's flat rate. Brackets matter more than the headline top rate. Our guides to states with no income tax and flat tax states go further.
Layer 2: Local taxes and payroll items
Some cities and counties add their own income tax on top of the state. Well-known examples include New York City, many Ohio municipalities, Pennsylvania local earned income taxes and Maryland county taxes. A local tax can change your take-home pay as much as a state tax does, so check if your city or county has one.
Several states also run payroll-funded programs such as disability insurance or paid family leave, which take a small percentage from each paycheck. Rates and caps vary by state and change from year to year, so check with the state agency. Our guide to local income taxes covers the basics, and the calculator lets you enter a local tax rate.
Layer 3: Cost of living
A higher take-home pay doesn't help much if housing eats it up. After you compare net pay, compare what you would actually spend in each place:
- Housing: look at real listings for the kind of place you would rent or buy, including utilities.
- Property and sales taxes: states without an income tax often lean more on these. Homeowners and big spenders feel the difference.
- Transportation: car insurance, gas, parking, tolls or transit passes.
- Childcare and health insurance: both can vary widely by area and employer.
A simple test is to subtract your estimated monthly housing and transportation costs from monthly take-home pay in each location. The place with more left over is usually the stronger offer, all else being equal.
Finding the salary you would need to match
Sometimes the question is reversed: what salary in a taxed state matches your take-home pay in a no-tax state? You can find it by trying higher salaries in the calculator until the net pay matches.
In the example above, $90,000 in Tennessee takes home about $72,145 a year. In Minnesota, a salary of $97,500 takes home about $72,315, just above it. So you would need roughly $7,500 more in Minnesota to break even on taxes alone, before considering any difference in living costs or the paid leave premium.
This approach is useful when weighing a relocation or a remote job that sets pay by location. Our guide to comparing job offers pairs well with this method.
Special cases to keep in mind
- Living in one state, working in another. You may owe tax to your work state, your home state or both, often with a credit to prevent double taxation. Some neighboring states have reciprocity agreements; Pennsylvania and New Jersey are one example.
- Remote work. Your tax generally follows where you physically work and live, but some states have special rules. Check with both state tax agencies.
- Moving mid-year. You will likely file part-year returns in both states.
For these situations, the state agencies and a tax professional are the best sources for your specific case.
Frequently Asked Questions
Is federal tax different from state to state?
No. Federal income tax, Social Security and Medicare are the same nationwide for the same pay and filing status. State and local taxes are what differ.
Does a state with no income tax always mean more money?
It means more take-home pay at the same salary, but not always more money left over. Housing, property tax and other costs can offset the difference.
How do I compare a job offer in another state?
Estimate take-home pay for each location with the paycheck calculator, then subtract expected housing and transportation costs. Compare what is left.
Do any cities have their own income tax?
Yes. New York City, many Ohio cities, Pennsylvania localities and Maryland counties are common examples. Check your local tax agency for current rates.
Sources
- Tax Foundation: State Income Tax Rates for 2026
- IRS: Tax inflation adjustments for tax year 2026
- IRS Publication 15, Employer's Tax Guide
Run the numbers for your state
Written and checked against IRS, Social Security Administration and state tax agency publications for the 2026 tax year. General information, not tax, legal or financial advice. Read our editorial policy, calculation methodology and sources.