State & Local Tax Guide
Everything you need to know about taxes when relocating — from income tax to property tax and everything in between.
Why Taxes Matter When You Relocate
Your tax bill can change by tens of thousands of dollars depending on where you live. Whether you're a retiree looking to stretch your savings or a founder choosing where to base your startup, understanding the tax landscape is essential to making a smart move.
Types of Taxes That Vary by State
State Income Tax
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Others range from a flat rate (Colorado: 4.4%) to progressive brackets (California: up to 13.3%). For retirees, some states exempt Social Security and pension income entirely.
Sales Tax
State sales tax rates range from 0% (Delaware, Montana, New Hampshire, Oregon) to over 7% in several states. When you factor in local option taxes, combined rates can exceed 10% in cities like Chicago and Memphis.
Property Tax
Property taxes vary dramatically — from about 0.3% of home value in Hawaii to over 2.2% in New Jersey. For retirees, many states offer homestead exemptions or property tax freezes that cap annual increases.
Estate & Inheritance Tax
Only 12 states and DC levy an estate tax, and 6 states have an inheritance tax. If estate planning is part of your relocation decision, this is a critical factor — especially for retirees passing wealth to the next generation.
How to Compare Taxes Across States
The best way to compare tax burdens is to model your actual income and spending patterns in each state you're considering. Our tool does exactly that — enter your income and a few key details, and we show you the total tax picture side by side.