How the estimate works
Tax comparison methodology
A useful estimate should make its math and limits visible. Here is what the comparison includes, which assumptions it uses, and where a professional review still matters.
Income tax
Applies state brackets and available local income-tax rates to taxable income.
Sales tax
Estimates taxable spending as 35% of annual household income.
Property tax
Applies the available effective property-tax rate to the assumed home value.
What the estimated annual difference includes
The headline dollar difference is the difference between each location’s estimated annual state and local income tax, estimated sales tax, and estimated property tax. A positive savings figure means the destination is estimated to have the lower total for those three categories.
Inputs and homepage defaults
- Annual household income: the amount submitted by the user, or $100,000 when the optional homepage field is left blank.
- Home value: the homepage preview currently assumes $500,000.
- Filing status: the homepage preview currently uses single filing status.
- Age adjustment: the homepage preview does not apply an over-65 adjustment.
- Taxable spending: estimated as 35% of annual income for the sales-tax calculation.
How each category is estimated
State and local income tax
The calculator subtracts the available standard deduction from annual income, applies the location’s income-tax brackets in ascending order, and then adds an available county income-tax rate. The result is an estimate rather than a prepared return: it does not model every deduction, credit, exemption, income type, reciprocity rule, or municipal tax.
Sales tax
The calculator multiplies annual income by the 35% taxable-spending assumption and applies the available sales-tax rate. Actual sales tax depends on what a household buys, which purchases are exempt, and the precise local jurisdiction.
Property tax
The calculator multiplies the home value by the available effective property-tax rate. Actual bills depend on assessed value, assessment cycles, local rates, exemptions, credits, and special taxing districts.
Location resolution and fallback behavior
State names and two-letter codes resolve to statewide data. Supported city identifiers can use city-level sales and property rates. ZIP codes first attempt to resolve to a county; if specific county data is unavailable, the comparison falls back to statewide data. That fallback can make a result less locally precise.
What is not included in the headline estimate
The dollar estimate does not currently include retirement-income treatment, estate or inheritance tax, business or franchise taxes, gross-receipts taxes, insurance costs, federal taxes, transaction costs, special assessments, or every location-specific levy. Cost-of-living information is contextual and is not added to the headline tax difference.
Rounding, rate normalization, and data timing
Tax amounts are calculated to cents and generally displayed as rounded whole dollars. Source data can represent rates in percentage or decimal form; the calculation layer normalizes those formats before applying them. Tax law and local rates change, so users should check the applicable authority before acting on a result.
Use the estimate as a planning screen
The comparison is designed to identify a potentially meaningful difference worth investigating—not to replace a tax return, appraisal, or individualized professional advice.