The ultimate high-tax vs no-tax comparison. NYC residents face 12.7% combined income tax (10.9% state + 3.876% city), while Texas charges 0% (constitutionally prohibited since 1993). A $100,000 NYC earner pays ~$9,500 in state/city taxes vs $0 in Texas. The catch: Texas property taxes are 1.6% (among highest in US) vs NY 1.73%. Remote workers keeping NYC salaries while living in Austin or Dallas see the biggest gains.

By CountryTaxCalc Research Team

Last Updated: April 2026

The Big Picture

🗽 New York

10.9%

High Tax State

Progressive + NYC tax

⭐ Texas

0%

No Income Tax

Constitutionally prohibited

Typical Annual Savings

At $100,000 income:

$9,500

That is $792/month back in your pocket!

Tax Savings by Income Level

IncomeNY TaxTX TaxSavings10-Year
$50,000 $2,850 (NY state only)$0TX saves $2,850$28,500
$75,000 $4,600 (NY state only)$0TX saves $4,600$46,000
$100,000 $6,500 (NY state only)$0TX saves $6,500$65,000
$100,000 (NYC) $9,500 (state + city)$0TX saves $9,500$95,000
$150,000 (NYC) $14,300 (state + city)$0TX saves $14,300$143,000
$250,000 (NYC) $26,500 (state + city)$0TX saves $26,500$265,000

New York Pros and Cons

✅ Pros

  • World-class job market (finance, media, tech, law)
  • Public transit eliminates car costs ($8,000-12,000/year saved)
  • Rent-controlled apartments for long-term tenants
  • Cultural capital: Broadway, museums, dining, nightlife

❌ Cons

  • Up to 12.7% combined tax (10.9% state + 3.876% NYC)
  • Average rent $3,500/month (Manhattan), $2,400 (outer boroughs)
  • Brutal winters require heated apartments
  • High cost of everything: food, childcare, services

Texas Pros and Cons

✅ Pros

  • 0% state income tax (constitutionally prohibited since 1993)
  • No estate/inheritance tax (huge for wealthy individuals)
  • Booming tech hubs: Austin, Dallas, Houston
  • Lower cost of living than NYC (housing 40-60% less)

❌ Cons

  • Property taxes 1.6% average (among highest in US)
  • Car-dependent: $800+/month ownership costs
  • Extreme summer heat (100°F+ for months)
  • Limited public transit outside downtown cores
💡

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Frequently Asked Questions

Q: How much will I save moving from NYC to Texas?

A $100,000 NYC earner saves approximately $9,500/year (10.9% state + 3.876% city tax eliminated). Over 10 years: $95,000. However, factor in Texas's higher property taxes (1.6% vs NYC's effective ~1.73%) and mandatory car costs ($800+/month) if moving from car-free NYC. Net savings are still substantial for most income levels.

Q: Does living upstate New York change the math vs Texas?

Significantly. Upstate NY (Albany, Buffalo, Rochester) has no city income tax—only the state's 6.85%-10.9% rates apply. A $100,000 earner pays ~$6,500 upstate vs ~$9,500 in NYC. The Texas advantage shrinks from $9,500 to $6,500 annually. Upstate housing is also much cheaper than NYC, narrowing the overall cost-of-living gap with Texas.

Q: What about property taxes in Texas vs New York?

Texas has some of the highest property taxes in the nation (1.6% average), while New York averages 1.73%. On a $400,000 home: Texas = $6,400/year, New York = $6,920/year. The difference is minimal, but Texas has no income tax to offset property tax costs. For homeowners, the income tax savings still outweigh higher property taxes in most scenarios.

Q: Which Texas city is best for NYC transplants?

Austin is the most popular choice—it has the strongest tech scene, youngest population, and most 'coastal' vibe. Dallas offers a stronger job market in finance and corporate headquarters. Houston has the lowest cost of living and strongest energy sector jobs. San Antonio is most affordable but has the smallest job market. Most NYC transplants choose Austin or Dallas.

Q: Can I establish Texas residency while keeping ties to NYC?

New York aggressively audits claimed Texas residents, especially high earners. They count days in each state, examine where your doctors/accountants are, and review credit card transactions. You need to prove Texas is your true domicile—get a TX driver's license, register to vote in TX, change your banks to TX addresses. Maintain minimal NY ties or face audits and back taxes.

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