Step 2: Apply New York’s brackets (state only)

Using the published bracket structure for single filers, the estimated New York state income tax on $142,000 of taxable income comes out to about $7,952.

Florida has no state income tax on wages, so the comparable figure is $0.

Estimated annual savings: $7,952

That’s about $663 per month.

Important nuance: This is New York State only. If you live in New York City or Yonkers, local income tax can add another layer. In other words, the New York-to-Florida savings could be meaningfully higher for New York City residents than what’s shown here.

Example 3: $400,000 income

California to Texas

California is the classic high-income-tax comparison because it has multiple brackets, topping out in the double digits. For this estimate, I’m using the published California brackets for single filers and California’s standard deduction for the referenced year.

Step 1: Estimate taxable income (simplified)

• Income: $400,000

• Less California standard deduction (single): $5,540

• Estimated California taxable income: $394,460

Step 2: Apply California’s brackets

On $394,460 of taxable income, the estimated California state income tax is about $33,565.

Texas has no state income tax on wages, so the comparable figure is $0.

Estimated annual savings: $33,565

That’s about $2,797 per month.

Result? At this income level, state income tax is not just “a little less withholding.” It can be the difference between maxing out retirement accounts and not, paying down a mortgage years earlier or building a taxable investment portfolio much faster.

Side-by-Side sSummary

The Part People Forget: No Income Tax Does Not Mean No Tax

States that skip wage income tax still need revenue. Often, the trade-off shows up in sales taxes, property taxes, fees or a higher overall cost in specific areas. Unfortunately, states without income tax frequently rely more on other taxes.

So before you pack boxes, sanity-check these three buckets:

1. Housing math: If home prices jump (or property taxes are higher), that can eat your income tax “raise” quickly.

2. Spending habits: Higher sales tax hurts more if you spend a large percentage of your income.

3. Local taxes: Some places tack on local sales taxes and fees; and in certain states, cities add their own income tax (like New York City).

Editor’s note: The figures and examples provided are estimates and should not be considered financial, tax or legal advice. Tax outcomes vary based on individual circumstances, filing status, deductions, credits and changes in tax law. Readers should consult a qualified tax professional or financial advisor before making decisions based on this information.

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This article originally appeared on GOBankingRates.com: I Asked ChatGPT How Much You Would Save If You Moved to a Zero-Tax State — Here’s the Math