If you're earning $75,000 in California, you'll pay about $3,000 in state income tax. In New Jersey? Around $3,200. In Texas or Florida? $0. Here's where state taxes hit hardest—and whether it's worth it.
The Complete Rankings: Top 10 Highest Tax States
| Rank | State | Top Tax Rate | Tax on $75k | Tax on $100k | Brackets |
|---|---|---|---|---|---|
| 🥇 #1 | California | 13.3%* | ~$2,900 | ~$4,900 | 9 brackets |
| 🥈 #2 | Hawaii | 11.0% | ~$3,100 | ~$5,200 | 12 brackets |
| 🥉 #3 | New York | 10.9% | ~$3,400 | ~$5,100 | 9 brackets |
| #4 (tie) | New Jersey | 10.75% | ~$3,200 | ~$4,800 | 7 brackets |
| #4 (tie) | DC | 10.75% | ~$3,400 | ~$5,300 | 7 brackets |
| #6 | Oregon | 9.9% | ~$4,200 | ~$6,100 | 4 brackets |
| #7 | Minnesota | 9.85% | ~$3,600 | ~$5,200 | 4 brackets |
| #8 | Vermont | 8.75% | ~$2,800 | ~$4,400 | 5 brackets |
| #9 | Iowa | 8.53% | ~$3,100 | ~$4,900 | 9 brackets |
| #10 | Wisconsin | 7.65% | ~$2,700 | ~$4,200 | 4 brackets |
*California's 13.3% includes a 1% mental health surtax on income over $1 million. Base top rate is 12.3%.
💸 What This Means for You
Middle-class earner making $75,000/year:
- High-tax state: Pay $2,700-$4,200/year in state income tax
- No-tax state: Pay $0 in state income tax
- Annual difference: $2,700-$4,200 saved
- Over 30-year career: $81,000-$126,000 saved!
#1: California - 13.3% (Highest in the Nation)
California
Top Rate: 13.3% (12.3% + 1% mental health surtax over $1M)
Structure: 9 progressive brackets from 1% to 12.3%
What you'd pay on $75k: ~$2,900 (3.9% effective rate)
What you'd pay on $150k: ~$9,500 (6.3% effective rate)
What you get for it:
- Extensive state universities (UC/CSU systems)
- Medi-Cal (Medicaid) covers 15 million+ residents
- Strong environmental protections
- Public transportation in major cities
- Social safety net programs
The trade-off: California's high taxes fund extensive services, but cost of living is also high. For middle-class earners, the combination of high state tax + expensive housing can be challenging.
#2: Hawaii - 11% (Most Complex Tax System)
Hawaii
Top Rate: 11%
Structure: 12 progressive brackets (most in the US!) from 1.4% to 11%
What you'd pay on $75k: ~$3,100 (4.1% effective rate)
What you get for it:
- Universal healthcare (Hawaii Prepaid Health Care Act)
- Strong public education system
- Island infrastructure maintenance
- Environmental conservation programs
The reality: Hawaii's high taxes are compounded by the highest cost of living in the US. Groceries cost 50% more than mainland. Paradise has a price tag.
#3: New York - 10.9% (Plus NYC Tax!)
New York
Top Rate: 10.9% (state) + 3.876% (NYC residents)
Structure: 9 progressive brackets from 4% to 10.9%
What you'd pay on $75k: ~$3,400 state + $2,900 NYC = $6,300 total if in NYC
What you get for it:
- MTA subway/bus system (in NYC)
- CUNY/SUNY university systems
- Medicaid covers 7+ million
- Extensive social services
NYC reality: If you live in New York City, you're paying nearly 15% in state+city income tax. That's California-level taxation with even higher cost of living.
Why Are These States' Taxes So High?
1. High Cost of Services
States like California, New York, and Hawaii provide extensive government services that require funding. Universal healthcare attempts (Hawaii), large transit systems (NYC), generous Medicaid programs—these all cost money.
2. Progressive Values
High-tax states tend to be politically progressive, with voters supporting more government programs, environmental initiatives, and social safety nets. You're paying for a different vision of government.
3. High Cost of Living
Paradoxically, states with high taxes often have high costs of living, which increases the cost of government itself. Government employees in SF cost more than in South Dakota.
4. Demographics
Wealthy residents can afford higher taxes. States with many high earners can sustain progressive tax systems that extract more from the top.
Is It Worth It? The Honest Answer
💭 For Middle-Class Families: The Math
What you're giving up (per year):
- $3,000-$4,000 in state income tax
- That's a car payment, vacation fund, or 401(k) contribution
What you might be getting:
- If you use public transit: NYC subway/SF BART worth $1,500/year vs car ownership
- If you use Medicaid: Healthcare coverage for your family
- If you have kids in public school: Generally better-funded schools (not always, but often)
- If you're low-income: More support programs, rent assistance, food benefits
The bottom line:
For middle-class earners making $50k-$100k, high-tax states are often not worth it unless:
- Your job pays significantly more to offset the taxes (tech workers in SF)
- You heavily use public services (transit, schools, healthcare)
- You can't get similar work in a lower-tax state
- Quality of life factors (culture, weather, family) outweigh the cost
Real Example: Same Job, Different States
Scenario: Software developer, $90,000 salary, single, renting
| Location | State Tax | Federal Tax | Take-Home | Rent (1BR) | Left After Rent |
|---|---|---|---|---|---|
| San Francisco, CA | $4,200 | $11,500 | $74,300 | $3,000/mo ($36k/yr) | $38,300 |
| New York, NY | $7,800 (state+city) | $11,500 | $70,700 | $2,800/mo ($33.6k/yr) | $37,100 |
| Austin, TX | $0 | $11,500 | $78,500 | $1,600/mo ($19.2k/yr) | $59,300 ✅ |
| Nashville, TN | $0 | $11,500 | $78,500 | $1,500/mo ($18k/yr) | $60,500 ✅ |
Result: Living in Austin or Nashville leaves you with $20,000-$23,000 more per year after rent compared to SF or NYC. That's a massive difference in quality of life for a middle-class earner.
What About High Earners?
If you're making $200,000+, high-tax states hit even harder:
- California at $250k: ~$19,000 in state tax (7.6% effective)
- New York at $250k: ~$18,000 in state tax (7.2% effective)
- Texas at $250k: $0 in state tax
This is why you see wealthy individuals and companies relocating to Texas, Florida, and Nevada. At high incomes, the tax savings become life-changing.
Should You Leave a High-Tax State?
✅ Consider leaving if:
- You can work remotely and income is $75k+
- You don't heavily use public services
- You're paying >$4,000/year in state tax
- You're trying to save for a house, retirement, or kids' college
- Similar job opportunities exist in lower-tax states
❌ Think twice if:
- Your income is under $50k (tax savings too small)
- Your job pays a "location premium" (SF tech jobs pay 30-50% more)
- You heavily use public transit, Medicaid, or other state services
- Family/support network is all in your current state
- You genuinely love where you live (money isn't everything!)
Best Alternatives to High-Tax States
If you're considering leaving, these states offer similar benefits with much lower taxes:
For California Residents:
- Nevada (Reno/Henderson): No income tax, close to CA, lower cost of living
- Arizona (Phoenix): 2.5% flat tax, tech jobs, similar climate
- Texas (Austin/Dallas): No income tax, booming tech scene
For New York Residents:
- Florida (Miami/Tampa): No income tax, beach lifestyle, no winter
- Tennessee (Nashville): No income tax, music scene, 4 seasons
- North Carolina (Charlotte/Raleigh): 4.25% flat tax (vs 10.9%), growing cities
See our guide: 9 States with No Income Tax
The Complete State Tax Rankings (All 51 Jurisdictions)
Want to see where your state ranks? Here's the full list from highest to lowest:
Highest: California (13.3%), Hawaii (11%), New York (10.9%), NJ/DC (10.75%), Oregon (9.9%), Minnesota (9.85%), Vermont (8.75%), Iowa (8.53%), Wisconsin (7.65%), Connecticut (6.99%)
Lowest Progressive: North Dakota (2.5%), Pennsylvania (3.07%), Indiana (3.0%)
Zero Tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
See full state-by-state comparison →
Frequently Asked Questions
Why doesn't everyone just leave high-tax states?
Many reasons: Jobs (especially specialized careers only available in certain cities), family ties, cultural fit, weather preferences, established life (home, kids in school), fear of change. Money isn't everything—but for middle-class earners, an extra $3,000-$5,000/year matters a lot.
Do high-tax states provide better services?
Sometimes, not always. California has better Medicaid coverage than Texas, but worse roads. NYC has extensive public transit, but also some of the worst schools. It varies by service and by location within each state. Don't assume high tax = better services.
Can I claim residency in a low-tax state but live elsewhere?
No. This is tax fraud. You pay taxes where you actually live and work, not where you claim. States aggressively audit this. If you spend >183 days in California, you're a CA resident for tax purposes—period.
What if I move mid-year?
You file part-year returns in both states, paying each state tax on the income earned while living there. Moving mid-year can save you money! Example: Live in NY Jan-June earning $50k, move to FL July-Dec earning $50k. You only pay NY tax on the first $50k.
Take Action: Calculate Your Potential Savings
Ready to see your exact tax burden? Use our calculator to compare your current state to lower-tax alternatives:
Calculate Your State Tax Now →
Related Resources
- 9 States with No Income Tax - Escape high taxes entirely
- Lowest Tax States 2025 - Best low-tax alternatives
- 2025 State Tax Reforms - What changed this year
- California vs Texas Comparison
- New York vs Florida Comparison