VS
California vs Texas: Which State Keeps More of Your Paycheck?
A detailed comparison of take-home pay between California and Texas. See how much you could save by moving.
California and Texas represent two very different approaches to taxation. California has one of the highest state income tax rates in the country, while Texas has no state income tax at all. This difference can have a massive impact on your take-home pay.
Tax Comparison by Income Level
Let's compare the tax burden at different income levels. We'll look at the total state and local tax burden for a single filer in each state:
| Annual Income | CA State Tax | TX State Tax | Difference |
|---|---|---|---|
| $40,000 | ~$1,200 | $0 | $1,200 |
| $75,000 | ~$3,800 | $0 | $3,800 |
| $100,000 | ~$5,800 | $0 | $5,800 |
| $200,000 | ~$16,500 | $0 | $16,500 |
Beyond Taxes: Cost of Living Considerations
While taxes are a major factor, cost of living also matters. Texas generally has lower housing costs but higher property taxes. California has higher costs across the board but also higher average salaries.