Why state tax varies so much
Nine states levy no wage income tax; others run flat rates (Illinois 4.95%, Pennsylvania 3.07%) or steeply progressive ones (California tops out above 12% with surtaxes). Local taxes in cities like New York add another layer entirely.
What this model does
It applies a single top-marginal rate to your whole income — a deliberately simple approximation. Real state returns have brackets, standard deductions and credits, so the estimate runs high for progressive states and precise for flat-rate states.
Relocation maths
- State tax is often the largest single difference between two offers
- Property and sales taxes can offset a low income tax
- Some states tax remote work based on employer location — check the rules
- Reciprocity agreements exist between some neighbouring states
For payroll accuracy
Use your state's withholding tables or a payroll provider. This calculator is for offer comparisons and budgeting, not for setting up payroll.
Frequently Asked Questions
Which states have no income tax?
Alaska, Florida, Nevada, New Hampshire (wages only), South Dakota, Tennessee, Texas, Washington and Wyoming.
Does this include city tax?
No — New York City, Philadelphia and others add local tax on top.
Why is my state refund different?
State returns apply brackets and credits; this is a single-rate estimate.
Assumptions & disclaimer
Results are estimates for planning. Fee schedules, tax brackets and deduction limits change; confirm current figures with the marketplace, the IRS or a qualified accountant before making decisions. Nothing here is financial, tax or legal advice.
Privacy & Your Data
BizCalcTool runs entirely in your browser. The figures you enter are never uploaded, stored or shared — there is no backend to send them to.