What You Really Need To Earn To Keep $150K Across All 50 US States

In today’s economic landscape, understanding the gap between gross salary and actual take-home pay has become crucial for career planning. With inflation pressures, shifting tax policies, and regional variations in cost structures, earning a six-figure paycheck doesn’t automatically mean you’re keeping $150,000 annually. The reality? Depending on where you live, you might need to earn anywhere from $201,000 to $231,000 to actually pocket that amount after federal, state, and FICA taxes.

Why The Variance Across States Matters

The difference in tax burdens across the US is staggering. Seven states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming — operate without state income tax, meaning they have the lowest overall tax burden at 25.5%. Meanwhile, Oregon tops the list with a 35.1% total tax burden, requiring earners to make $231,058 to net $150,000.

This disparity reflects fundamental differences in how states fund public services. High-tax states like California (33.8% burden), Hawaii (33.3%), and Minnesota (33.0%) rely more heavily on income taxation, while no-tax states typically compensate through other revenue streams or lower public spending.

The No-Income-Tax Advantage

Living in one of the eight states with zero state income tax presents a clear advantage. To reach a $150K net income in these regions, you only need to earn $201,210. These states include:

• Alaska
• Florida
• Nevada
• New Hampshire
• South Dakota
• Tennessee
• Texas
• Wyoming

This $30,000+ difference compared to high-tax states can meaningfully impact long-term wealth accumulation, particularly for mid-to-senior level professionals.

High-Tax States: What You Actually Need To Earn

On the opposite end, several states demand substantially higher gross salaries to achieve the same net outcome:

Oregon requires the highest salary at $231,058 (35.1% tax burden) — making it over $29,000 more than tax-free states.

California follows at $226,584 needed (33.8% burden), reflecting both state income tax and higher living costs.

Hawaii requires $224,934 (33.3% burden), while Minnesota demands $223,682 (33.0%).

These four states represent the steepest tax burden on six-figure earners, significantly impacting net purchasing power.

Middle-Ground States: The Moderate Tax Tier

The majority of US states cluster in the 29-32% tax burden range, requiring salaries between $213,000 and $220,000 to achieve $150K net income. This includes states like:

• Colorado ($213,917, 29.9% burden)
• Connecticut ($218,795, 31.4% burden)
• Georgia ($217,424, 31.0% burden)
• Illinois ($216,687, 30.8% burden)
• Massachusetts ($216,367, 30.7% burden)
• New York ($218,974, 31.5% burden)
• Pennsylvania ($213,814, 29.9% burden)
• Virginia ($218,523, 31.4% burden)

These states represent a balanced scenario where earners face moderate but meaningful tax pressure.

Complete State-by-State Breakdown

For comprehensive reference, here’s how each state ranks:

Lowest Tax Burden (25.5%): Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Wyoming — all require $201,210

Low-to-Moderate (26.8-28.7%):

• North Dakota: $205,002 (26.8%)
• Arizona: $207,920 (27.9%)
• Ohio: $209,307 (28.3%)
• Indiana: $210,282 (28.7%)
• Louisiana: $210,323 (28.7%)
• Iowa: $211,665 (29.1%)

Moderate (29.7-31.0%):

• Alabama: $213,336 (29.7%)
• Kentucky: $213,365 (29.7%)
• Arkansas: $213,964 (29.9%)
• Colorado: $213,917 (29.9%)
• Michigan: $214,052 (29.9%)
• Pennsylvania: $213,814 (29.9%)
• Mississippi: $214,614 (30.1%)
• Missouri: $214,539 (30.1%)
• Utah: $214,834 (30.2%)
• North Carolina: $214,379 (30.0%)
• Rhode Island: $214,180 (30.0%)
• New Mexico: $215,098 (30.3%)
• Oklahoma: $215,208 (30.3%)
• West Virginia: $215,234 (30.3%)
• Massachusetts: $216,367 (30.7%)
• Illinois: $216,687 (30.8%)
• Georgia: $217,424 (31.0%)
• Wisconsin: $217,470 (31.0%)

High-Moderate (31.2-32.4%):

• Idaho: $217,984 (31.2%)
• Kansas: $218,436 (31.3%)
• Nebraska: $218,177 (31.3%)
• New Jersey: $218,415 (31.3%)
• Connecticut: $218,795 (31.4%)
• Virginia: $218,523 (31.4%)
• Montana: $219,052 (31.5%)
• New York: $218,974 (31.5%)
• South Carolina: $218,977 (31.5%)
• Delaware: $219,980 (31.8%)
• Vermont: $220,068 (31.8%)
• Maryland: $221,633 (32.3%)
• Maine: $221,832 (32.4%)

High Tax Burden (33.0%+):

• Minnesota: $223,682 (33.0%)
• Hawaii: $224,934 (33.3%)
• California: $226,584 (33.8%)
• Oregon: $231,058 (35.1%)

Key Takeaways For US Earners

The $30,000 swing between the most tax-efficient and most tax-heavy states underscores an important reality: location significantly influences real earnings power. For someone targeting a $150K annual income after taxes, the choice between a no-income-tax state and a high-tax state can mean the difference between earning $201,000 and $231,000 — a 15% difference in gross salary requirements.

This gap compounds over decades. A professional relocating from Oregon to Texas saves approximately $30,000 annually in taxes on the same net income, translating to $300,000+ over a decade. For high earners, tax optimization through strategic location decisions represents one of the most straightforward wealth-building levers available.

Methodology: Analysis based on 2024 federal tax brackets and current state income tax rates as of April 2025. Calculations assume single-filer status using standard deductions and include federal income tax, state income tax, and FICA contributions. All figures represent gross annual salary required to net $150,000 after total tax obligations.