How Much Can You Save by Moving to a No-Tax State?
The savings depend entirely on your income level and which state you're leaving. A $500K earner leaving New York for Florida could save roughly $30K–$40K per year in state income tax. At $1M, the savings jump to $80K+. Over 10 years, that's potentially $300K–$800K kept in your pocket instead of sent to Albany. The calculator above uses your specific income and each state's actual bracket schedule to compute a precise estimate.
The 9 States With No Income Tax
Nine states impose no broad individual income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. These states are the most popular destinations for tax-motivated moves. However, some offset the lack of income tax with higher property taxes (Texas, New Hampshire) or sales taxes (Tennessee, Washington). And Washington imposes a 7% capital gains excise tax on long-term gains.
Beyond Income Tax: What Else to Consider
State income tax is the most visible tax savings from a move, but it's not the only factor. Property taxes, sales taxes, cost of living, housing costs, climate, and quality of life all play a role. Texas has no income tax but has some of the highest property taxes in the country. Florida has no income tax but has hurricane risk and homeowner's insurance costs. The calculator above focuses specifically on income tax to give you a clear, comparable number — but a comprehensive decision should weigh all factors.
How to Properly Change Your Tax Residency
Saving on state taxes requires more than just moving — you need to properly establish domicile in your new state and sever ties with your old one. Your former state may audit your departure, especially if you're a high earner leaving a high-tax state. Use our Residency Change Checklist to ensure every step is covered, and our Audit Risk Score to assess your exposure. Track your days with the 183-Day Calculator to make sure you don't accidentally exceed your former state's residency threshold.
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Frequently Asked Questions
- How much can you save by moving to a no-tax state?
- It depends on your income and current state. A $500K earner moving from New York (top rate 10.9%) to Florida (no tax) could save roughly $30K–$40K per year in state income tax alone. A $1M earner could save $80K+. Use the calculator above to see your specific estimate.
- Is this estimate accurate?
- This calculator uses each state's actual tax bracket schedule for 2025/2026, including standard deductions and filing-status-specific thresholds. It computes a bracket-by-bracket estimate, not just a top-rate approximation. However, it does not account for itemized deductions, credits, local/city taxes, or special rules — for precise numbers, consult a CPA.
- The 9 states with no income tax
- Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming impose no broad individual income tax. Washington does have a 7% capital gains excise tax on long-term gains above a threshold. New Hampshire fully repealed its Interest & Dividends tax effective 2025.
- What else should I consider beyond income tax?
- State income tax is only one factor. Property taxes, sales taxes, cost of living, housing costs, and quality-of-life differences all matter. Some no-tax states offset the lack of income tax with higher property or sales taxes. A comprehensive comparison should include all of these — but this calculator focuses specifically on income tax savings to give you a clear, comparable number.
- Does federal tax change when I move states?
- No — federal income tax is the same regardless of which state you live in. Only your state income tax liability changes. The SALT deduction cap ($10,000) may affect how much state tax you can deduct on your federal return, which means the net savings from moving to a no-tax state could be slightly different than the raw state tax difference.
- How do I properly change my tax residency?
- Changing residency requires both physical relocation and demonstrable intent. Use our Residency Change Checklist to ensure every step is covered, and our Audit Risk Score to assess whether your former state might challenge the move.
- How does iReside help?
- iReside tracks your physical location via GPS every day and logs which state you're in. After a move, it ensures you don't accidentally exceed your former state's residency threshold — which could nullify the tax savings you're calculating here.