The Real Paycheck: How US State Taxes Slice Into Your Six-Figure Income

Landing a $100K salary feels like hitting the jackpot—until you see what actually lands in your bank account. The shocking truth? Your take-home pay can vary dramatically depending on which state you call home, with some people keeping nearly $79K while others hold onto just over $70K.

Why Your Six-Figure Salary Isn’t What It Seems

When you earn $100,000 annually, three layers of taxation eat away at your income. First comes federal income tax, then Social Security and Medicare contributions (FICA), and finally—depending on where you live—state and local taxes. These aren’t small nibbles either.

The difference between states is staggering. Some states with no income tax (like Texas, Florida, and Nevada) let six-figure earners keep $78,736 of their salary. Meanwhile, high-tax states trim that down to $70,540 or less. That’s an $8,196 gap just from geography—money that could go toward investments, savings, or lifestyle improvements.

Which States Let You Keep the Most?

Tax-Friendly States: Nine states—Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming—have no state income tax. Single filers in these states retain $78,736 from a $100K salary after federal taxes and FICA deductions.

Moderate Tax Burden: States like North Dakota ($78,024 after taxes), Louisiana ($76,111), Ohio ($76,702), and Arizona ($76,611) offer relatively friendly tax environments while still providing public services.

Where Your Paycheck Takes the Biggest Hit

High-Tax States: Oregon leads the pack with the heaviest burden—single filers pay $29,460 in total taxes, leaving them with just $70,540. Hawaii follows closely with $27,421 in total taxes, resulting in $72,579 take-home pay.

Above-Average Tax Burden: States like Alabama ($26,074), California ($26,591), Delaware ($26,633), Maine ($26,833), and Connecticut ($26,014) all claim over $26K from a $100K salary.

The Middle Ground: Most States

The majority of US states fall in the $23K-$26K tax range. This includes:

• Lower-middle: Louisiana, Ohio, Arizona ($23K-$24K range)
• Mid-range: Colorado, Kentucky, Maryland, Michigan, Nebraska, New Jersey, Vermont ($25K-$25.5K range)
• Upper-middle: New York, Massachusetts, Illinois, Minnesota, Kansas ($26K+ range)

States like Indiana, Pennsylvania, and North Carolina keep taxes under $25K, positioning them as reasonable alternatives for higher earners concerned about tax efficiency.

A State-by-State Breakdown

The variation becomes clear when examining all 50 states:

Best performers (keeping $78K+): Alaska, Florida, Nevada, New Hampshire, North Dakota, South Dakota, Tennessee, Texas, Washington, Wyoming

Worst performers (keeping under $71K): Hawaii, Oregon

Sweet spots ($74K-$76K range): Arizona, Louisiana, New Mexico, North Carolina, Ohio, Rhode Island

Methodology Behind the Numbers

These calculations use 2025 tax brackets from federal and state sources, factoring in standard deductions for single filers. The analysis includes federal income tax, FICA contributions (Social Security and Medicare), and applicable state/local taxes. All figures reflect the real tax burden as of recent tax year data.

What This Means for Your Financial Planning

A $8K-$9K annual difference in taxes isn’t trivial. Over a decade, that’s $80K-$90K in additional money you could be investing, saving, or spending. For anyone contemplating a move or job relocation, factoring in state taxes should be part of the equation.

If you’re maximizing earnings at the six-figure level, location becomes a strategic financial decision—not just a lifestyle choice. The state you choose to work and live in can significantly impact your wealth-building trajectory.