Take-Home Pay by State: Why Your Paycheck Differs

Two friends earn the same salary. One lives in Texas, and the other lives in Oregon. At the end of the year, they do not take home the same amount. The salary is the same, but the tax bill is not. This guide explains why, shows real numbers for 2026 and gives you a simple way to compare job offers in different states.

What is the same in every state

Two big taxes follow you everywhere:

• Federal income tax. It uses the same brackets and the same standard deduction in all 50 states. For 2026, the standard deduction is $16,100 for a single filer, $24,150 for a head of household and $32,200 for a married couple filing jointly, according to IRS Revenue Procedure 2025-32.
• FICA (Social Security and Medicare). Employees pay 6.2% for Social Security on wages up to $184,500 in 2026, plus 1.45% for Medicare on all wages.

For a single filer earning $60,000 and taking the standard deduction, federal income tax is about $5,020 and FICA is $4,590. That leaves about $50,390 a year, which is about $4,199 a month, before any state tax. In a state with no income tax on wages, that is your take-home pay.

What changes from state to state

1. State income tax

States choose one of three systems:

• No tax on wages. Nine states: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
• A flat rate. One rate on all taxable income, such as 3.07% in Pennsylvania or 4.95% in Illinois.
• Graduated brackets. Higher income is taxed at higher rates, like the federal system. California, New York and Oregon work this way, with top rates much higher than the lowest.

The Tax Foundation publishes a yearly table of every state's rates and brackets. Its 2026 table is the source of the state figures on this site.

2. State deductions, exemptions and credits

The rate is only half the story. Each state also decides how much income is not taxed at all. Some states have a standard deduction (North Carolina's is $12,750 for a single filer in 2026). Some give a personal exemption (Illinois gives $2,925). Some give a tax credit instead. Two states with the same rate can collect very different amounts because of these rules.

3. Local income taxes

Some places add their own tax on top of the state tax. Examples include New York City and Yonkers, many cities in Ohio and Pennsylvania, Kansas City and St. Louis in Missouri, and the counties of Maryland and Indiana. A local tax can add one to four percent of your pay, so a city job and a suburban job in the same state can differ.

4. State payroll programs

A handful of states take money from your paycheck for their own insurance programs. These include state disability and paid family leave programs in places such as California, New Jersey, New York, Rhode Island, Hawaii, Washington, Massachusetts, Connecticut, Colorado and Oregon. The amounts are usually under 2% of pay, but they are real deductions that a plain "income tax" number leaves out.

5. How your 401(k) is treated

In most states, money you put into a traditional 401(k) lowers your state taxable pay as well as your federal taxable pay. Pennsylvania and New Jersey are exceptions: they tax 401(k) deferrals as wages. On a $60,000 salary with 10% going into a 401(k), an Illinois worker's state tax drops from about $2,825 to about $2,528. A Pennsylvania worker's state tax stays at about $1,842.

Take-home pay in 12 states: a $60,000 salary

These figures are for a single filer with no children, paid every two weeks, using the 2026 standard deduction and no 401(k). They include federal tax, FICA and state income tax. They do not include local taxes or state payroll programs.

Among all 50 states and DC, Oregon takes the most state income tax from a $60,000 single filer in this model (about $4,420), followed by Hawaii, Maine, Illinois and Massachusetts. The spread between Texas and Oregon is about $4,400 a year, or about $370 a month.

A real decision: two job offers

Say you have two offers, and everything else is equal.

• Offer A: $80,000 in New York. Federal tax is about $8,770, FICA is $6,120 and New York State income tax is about $3,723. You take home about $61,387, or $5,116 a month.
• Offer B: $72,000 in Texas. Federal tax is about $7,010, FICA is $5,508 and there is no state income tax. You take home about $59,482, or $4,957 a month.

Offer A pays $8,000 more. After tax it pays only about $1,905 more a year, which is about $159 a month. And that is before New York City's tax, if you work there, and before the cost of living. If rent is $400 more a month in the New York job, Offer B wins.

Does "no income tax" mean cheaper?

Not always. States without an income tax usually raise money in other ways, such as sales tax, property tax or fees. A paycheck is one part of the picture. Before you move for a no-tax state, look at the whole cost: rent or housing, property tax, sales tax, insurance, transport and childcare. The paycheck gap is easy to count. The rest takes a little more work, but it often matters more.

How to compare two states in five steps

1. Write down the gross salary in each place.
2. Find the state income tax for each. The state pages on this site show the 2026 numbers.
3. Subtract federal tax and FICA, which are the same formula in both places.
4. Subtract local taxes and state payroll programs if they apply.
5. Compare the result with the difference in rent and everyday costs.

The paycheck calculator does steps 2 and 3 for you. Choose your state, enter your pay and filing status, and it shows federal tax, FICA, state income tax and your take-home pay. Run it twice, once for each offer.

What these numbers leave out

• Local income taxes, such as the New York City resident tax.
• State disability and paid family leave premiums.
• Health insurance premiums, FSA and HSA contributions and other deductions.
• Itemized deductions and credits other than the child tax credit.
• Bonuses, a second job and other income.

Use the estimates to compare places. For an exact figure, look at a real pay stub or ask your employer's payroll team.

Frequently asked questions

Which states have no income tax on wages?

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wages. Washington has a separate tax on large long-term capital gains, and it takes premiums for its paid leave and long-term care programs, which are not income tax.

Do I pay tax where I live or where I work?

It depends. You generally pay income tax to the state where you work, and your home state may also tax your income and give you a credit for tax paid to the other state. Some neighboring states have agreements that let you pay only your home state. Check both states' revenue departments if you live in one state and work in another.

Why is my paycheck smaller than an online calculator says?

Calculators usually leave out health insurance premiums, retirement contributions, local taxes and state payroll programs. Compare each line of your pay stub with the calculator, and see which deduction explains the difference.

Is a state with a flat tax better for me?

Not necessarily. A flat rate is simple, but the deduction or exemption decides how much income is taxed. A graduated system with a large deduction can be cheaper for a modest salary than a flat tax with none.

The bottom line

Federal tax and FICA are the same everywhere. The state decides the rest. Before you take a job in another state, compare the take-home pay, not the salary, and then compare the cost of living.

Sources

• State Individual Income Tax Rates and Brackets, 2026, Tax Foundation
• Revenue Procedure 2025-32 (2026 inflation adjustments), Internal Revenue Service
• Topic no. 751, Social Security and Medicare withholding rates, Internal Revenue Service
• Publication 15-T (2026), Federal Income Tax Withholding Methods, Internal Revenue Service

Take-home figures are calculated with the paycheck engine used by the calculator on this site: single filer, 2026 standard deduction, paid every two weeks, no 401(k). Last reviewed October 12, 2026.