Texas offers dramatic tax savings over New York with its 0% income tax versus New York's progressive rates up to 10.9% (plus NYC's additional 3.876%). At $100,000 income, you save $5,432 annually. Texas compensates with higher property taxes (1.6% vs 1.4%) and sales tax, but income tax savings typically outweigh these for most earners.

By CountryTaxCalc Research Team

Last Updated: March 2026

The Big Picture

⭐ Texas

0%

No Income Tax

Constitutional prohibition on state income tax

🗽 New York

10.9%

Plus NYC Tax

9 brackets from 4% to 10.9%, NYC adds up to 3.876%

Typical Annual Savings

At $100,000 income:

$5,432

That is $453/month back in your pocket!

Tax Savings by Income Level

IncomeTX TaxNY TaxSavings10-Year
$50,000 $0$2,391$2,391$23,910
$75,000 $0$3,766$3,766$37,660
$100,000 $0$5,432$5,432$54,320
$150,000 $0$8,782$8,782$87,820
$250,000 $0$15,632$15,632$156,320
$500,000 $0$36,857$36,857$368,570

Texas Pros and Cons

✅ Pros

  • 0% state income tax
  • Lower cost of living
  • Booming job market (Austin, Dallas, Houston)
  • Business-friendly environment

❌ Cons

  • Higher property taxes (1.6%)
  • Hot summers
  • Less public transit
  • Hurricane risk (coastal areas)

New York Pros and Cons

✅ Pros

  • World-class career opportunities
  • Cultural capital of the US
  • Excellent public transit (NYC)
  • Top universities and schools

❌ Cons

  • High income tax (up to 10.9%)
  • NYC adds 3.876% city tax
  • Extreme cost of living
  • Harsh winters
💡

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Frequently Asked Questions

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

At $100,000 income, you save approximately $5,432 per year on state income tax. At $250,000, savings jump to $15,632 annually. Over 10 years, a $100K earner keeps $54,320 more in Texas.

Q: Does Texas have any income tax?

No, Texas has no state income tax and it's prohibited by the state constitution. Texas generates revenue through property taxes (avg 1.6%), sales tax (6.25%-8.25%), and oil/gas revenues.

Q: What about NYC residents specifically?

NYC residents pay both New York State tax (up to 10.9%) AND NYC city tax (up to 3.876%), for a combined rate approaching 14.8%. Moving from NYC to Texas saves even more than upstate New York.

Q: Are property taxes higher in Texas than New York?

Yes, Texas averages 1.6% property tax vs New York's 1.4%. On a $400K home: Texas costs ~$6,400/year vs NY ~$5,600. However, income tax savings usually far exceed this $800 difference for most earners.

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