State Tax Comparison Calculator
Compare estimated state income tax and property tax between two states, then see how the annual difference could compound if invested over time.
Tax Paid In Each State
If you invest those savings this is how much more you can have:
Investment assumption: Assumes the annual tax difference is invested monthly and compounds monthly using a 10% long-term annual return assumption. Results are illustrative only and not financial advice.
This calculator provides estimates for comparison purposes only. Actual tax liability depends on your full tax situation and local rules.
How the calculator works
The calculator estimates your annual tax cost in each state using:
- State income tax (state-only) based on either progressive brackets or a flat rate, depending on the state.
- Property tax using an average effective residential property tax rate applied to your home value.
It then computes the annual difference between the two states and projects how that difference could grow if invested monthly with compounding.
What’s included
1) State taxable income (simplified): Your input is treated as gross income. For states where the model includes a state standard deduction by filing status, that deduction is subtracted to estimate taxable income.
2) State income tax: If a state uses progressive brackets, the calculator applies marginal rates by filing status (Single, Married Filing Jointly, Head of Household). If a state uses a flat tax, it applies the flat rate. Some states also include a high-income surtax in the model.
3) Property tax: Estimated as home value × state property tax rate. This is intended as a statewide average comparison, not a precise bill.
4) Investment projection: The annual tax difference is converted into a monthly contribution and compounded monthly using a long-term annual return assumption (currently 10%). You can set the horizon up to 100 years.
What’s not included
This tool is designed for directional planning. It intentionally excludes factors that vary widely by person or location, including:
- Local and city income taxes (for example, New York City tax)
- Sales and use taxes
- Federal income taxes
- Itemized deductions, credits, and special state-specific rules
- Property tax exemptions, assessment caps, reassessment timing
- Insurance, HOA, special assessments, and other housing costs
Results should be viewed as directional, not exact.
FAQ
Does this include federal taxes?
No. This is a state-only comparison for income tax and property tax.
Does this include local income taxes or county property tax rules?
No. Local income taxes and county-level property tax differences are not included. Property tax is modeled as a statewide average rate.
What does the investment chart represent?
It shows how investing the annual tax difference (added monthly) could grow over time with monthly compounding under the assumed return rate. It is illustrative only and not financial advice.
How accurate is this tax data over time?
State tax laws, brackets, deductions, and property tax rules change frequently due to legislation, inflation adjustments, and local policy. This calculator reflects a snapshot based on recent publicly available information, but it may not always reflect the most current law.
You should always double check results against official state tax authorities or a qualified tax professional before making financial or relocation decisions.