Moving from New York to Texas eliminates state income tax (up to 10.9% in NY, 0% in TX) but does not reduce property taxes — both states have high effective rates around 1.6%. For a $100,000 earner, leaving New York saves approximately $5,800-$7,000 in state income tax annually. NYC residents save even more due to the additional NYC income tax.
At a glance
Key Facts
New York State Income Tax Rates 2026
New York has a progressive income tax with nine brackets: 4% on the first $17,150 (single), rising through 4.5%, 5.25%, 5.85%, 6.25%, 6.85%, 9.65%, 10.3%, and 10.9% at the top (income above $25 million). For most working-age earners, the relevant bracket is 6.85% (income $215,400-$1,077,550 single) or 5.85%-6.25% for income $80,650-$215,400. New York City residents pay an additional NYC income tax of 3.078%-3.876% on top of state tax.
Texas: Zero State Income Tax
Texas has no personal state income tax — period. All wage income, salary, tip income, interest, dividends, and capital gains are completely exempt from state income tax in Texas. The Texas Constitution prohibits a personal income tax, making this a structural protection, not just current policy. For workers moving from New York, every dollar previously paid in New York state income tax becomes take-home pay in Texas.
Property Tax Comparison: Both States Are High
Where many people are surprised: both New York and Texas have high effective property tax rates. Tax Foundation data shows New York's effective property tax rate at approximately 1.62% and Texas at approximately 1.60%. On a $400,000 home: New York = approximately $6,480/year; Texas = approximately $6,400/year. Despite the similar effective rates, Texas homes in major metros (Austin, Dallas, Houston) often have lower absolute values than comparable New York properties, resulting in lower total property tax bills in dollar terms.
Income Tax Savings at Three Levels
$75,000 annual income: New York state income tax approximately $4,100 (effective rate ~5.5%); Texas = $0. Annual savings: approximately $4,100. $100,000 income: New York state income tax approximately $5,800 (effective rate ~5.8%); Texas = $0. Annual savings: approximately $5,800. $150,000 income: New York state income tax approximately $9,800 (effective rate ~6.5%); Texas = $0. Annual savings: approximately $9,800. NYC residents add $2,300-$5,800 in city income tax savings at the same income levels.
SALT Cap Under OBBBA: $40,000 MFJ / $20,000 Single
The OBBBA raised the SALT (State and Local Tax) deduction cap from $10,000 to $40,000 (MFJ) or $20,000 (single) for tax year 2025. This significantly changes the calculus for New York homeowners: many can now deduct a much larger portion of their combined state income tax and property tax on federal returns. High-earning New York homeowners who previously maxed out the $10,000 SALT cap now get much larger federal deductions — partially offsetting the NY income tax burden. Texas residents, paying no state income tax, primarily benefit from the SALT cap change through greater property tax deductibility.
Introduction
New York to Texas: The Complete 2026 Tax Comparison
New York and Texas represent two very different tax philosophies. New York funds its extensive public services with a progressive income tax reaching 10.9% at the top and an additional New York City income tax for NYC residents. Texas takes the opposite approach: no state income tax at all, funded instead by some of the highest property tax rates in the nation. For workers considering a New York to Texas move, the income tax savings are real and substantial — but the property tax picture is more nuanced than most people expect. This guide breaks down the full comparison at three income levels with real 2026 figures.
Section 01
The Full Tax Picture: New York vs Texas
A complete comparison looks beyond just income tax to include property tax, SALT deductibility, and cost of living factors.
State Income Tax: New York vs Texas
New York imposes a progressive state income tax. A single earner with $100,000 in taxable income pays approximately $5,800 in New York state income tax after accounting for the New York standard deduction (approximately $8,000 for single filers). The same income in Texas: $0 state income tax. The $5,800 difference goes entirely into the Texas resident's pocket.
New York City residents face an additional NYC income tax: the top NYC rate is 3.876%. A $100,000 NYC earner pays approximately $3,500 in NYC city income tax — bringing combined state + city income tax to approximately $9,300. Moving to Texas saves the entire $9,300 per year for a NYC resident.
Property Tax: More Similar Than Expected
The surprise for many New York-to-Texas movers is that Texas property taxes are not much lower. Both states have effective rates near 1.6%. However, for movers from NYC specifically, this is a significant change: NYC property tax on most condos and co-ops is structured differently and often lower in absolute terms due to abatements. Moving to a Texas suburban home worth $400,000 from a NYC property with a $250,000 effective tax basis could actually increase property taxes. Do the specific math for your target property, not just the statewide average.
No Texas Estate Tax
Texas has no state estate or inheritance tax. New York's estate tax applies to estates above approximately $7.16 million (2026) at rates up to 16%. For high-net-worth families, Texas domicile eliminates the New York estate tax exposure — a potentially very large savings over a lifetime.
Section 02
Worked Examples: Three Income Levels
Using actual 2026 tax rates for both states, here is what the move means in dollar terms.
$75,000 Gross Income (Single Filer)
New York: Standard deduction $8,000. NY taxable income: $67,000. NY state tax (estimated): approximately $3,900. Texas state tax: $0. Annual state income tax savings from moving: approximately $3,900. If NYC resident add approximately $2,100 in NYC tax savings. Total NY/NYC savings: approximately $6,000/year.
$100,000 Gross Income (Single Filer)
New York: Standard deduction $8,000. NY taxable income: $92,000. NY state tax (estimated, including 6.25% bracket): approximately $5,800. Texas: $0. Annual savings: approximately $5,800. NYC resident: add approximately $3,500 NYC tax savings. Total: approximately $9,300/year from NYC.
$150,000 Gross Income (Single Filer)
New York: NY taxable income approximately $142,000. NY state tax (6.85% bracket): approximately $9,800. Texas: $0. Annual savings: approximately $9,800. NYC resident: add approximately $5,200 NYC tax savings. Total from NYC: approximately $15,000/year. Over a 30-year career: approximately $450,000 in combined state and city income tax saved.
Use the Property Tax Calculator
For your specific target home in Texas, use the Property Tax Calculator at /tax-calculator/usa/property-tax-calculator-by-state/ to see your estimated Texas property tax bill. Compare this to your current New York property tax for the net property tax change from the move.
Section 03
Practical Considerations for the Move
Tax savings are significant, but a New York to Texas move involves several practical tax considerations beyond the annual savings.
Establishing Texas Domicile
To benefit from Texas's no-income-tax status, you must actually establish Texas as your domicile — your primary legal residence. New York is particularly aggressive about auditing former residents who claim to have moved but maintain significant New York connections. To establish Texas domicile: get a Texas driver's license, register to vote in Texas, register your vehicles in Texas, file a Homestead exemption application for your Texas home, update your will and trust documents to reflect Texas domicile, and minimize time spent in New York. New York will argue you are still a NY resident if you spend more than 183 days in New York AND maintain a permanent place of abode there.
The 183-Day Rule
New York's statutory residency rules: if you maintain a permanent place of abode in New York AND spend more than 183 days in New York during the year, you are a New York resident for income tax purposes — regardless of where your domicile is. Former NYC residents who keep a Manhattan pied-à-terre while claiming Texas domicile must be careful not to cross the 183-day threshold. Track your New York days carefully for at least three years after the move.
Texas Homestead Exemption
Texas offers a generous homestead exemption: $100,000 off the assessed value of your primary residence for school district property taxes (increased from $40,000 under HB 2 in 2023). Homeowners aged 65+ or with disabilities get additional exemptions. Apply for the exemption with your county appraisal district within the first year of ownership. This reduces the effective property tax rate below the nominal statewide average for homeowners.
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How much state income tax do I save moving from New York to Texas?
At $75,000 income: approximately $3,900/year. At $100,000: approximately $5,800/year. At $150,000: approximately $9,800/year. These are state income tax savings only. NYC residents save additional city income tax of approximately $2,100-$5,200 per year depending on income level. Texas has zero state income tax.
Q
Is Texas property tax higher than New York?
Not by much — both states have effective rates near 1.6% (Tax Foundation data). New York effective rate: approximately 1.62%; Texas: approximately 1.60%. On a $400,000 home, the annual property tax is approximately $6,400-$6,480 in either state. The Texas Homestead exemption (up to $100,000 off assessed value) can meaningfully reduce this for primary homeowners.
Q
Will New York still tax me after I move to Texas?
New York can still tax you if you spend more than 183 days per year in New York AND maintain a permanent place of abode there (the statutory residency test). To safely end New York tax obligations, establish clear Texas domicile — Texas driver's license, voter registration, vehicle registration — and limit New York days to 183 or fewer. New York audits former residents aggressively, particularly high earners.
Q
Does Texas have estate or inheritance tax?
No. Texas has no state estate tax or inheritance tax. New York's estate tax applies to estates above approximately $7.16 million at rates up to 16%. High-net-worth individuals with large estates benefit significantly from Texas domicile from an estate planning perspective.
Q
How do I estimate my Texas property tax?
Use the Property Tax Calculator by State at /tax-calculator/usa/property-tax-calculator-by-state/. Texas effective rates vary by county — Harris County (Houston) and Travis County (Austin) often have effective rates between 1.8%-2.2% before the homestead exemption. The state average of 1.60% is a useful baseline but local rates can be higher.
Disclaimer:For informational purposes only. This is not tax advice. Income tax estimates are approximations based on 2026 published rates; consult a tax professional for your specific situation.