A $150,000 salary in New York City is not the same as a $150,000 salary in Austin, Texas.
Most people only look at the headline number: Income Tax. They know California takes 13% and Florida takes 0%. They assume moving to a “Zero Tax” state is an automatic 13% raise.
But that is only half the math.
If you move to a “Zero Income Tax” state like Texas, the government still gets its money—they just take it from your house instead.
To make a smart move, you need to calculate your “Real Buying Power.” I built this tool to expose the truth about the “Silent Wealth Killers” (Property Tax and Cost of Living) that most people ignore until they get the bill.
The “Tax Trap” Breakdown (2025 Data)
Before you pack the U-Haul, look at the total tax burden. Notice how Texas and Florida have $0 Income Tax, but Texas punishes homeowners with property taxes that are nearly 3x higher than California’s effective rate.
| State | Income Tax (Top Rate) | Property Tax (Avg Effective) | Sales Tax (Avg Combined) |
| California | ~13.3% | 0.71% | 8.85% |
| New York | ~10.9% | 1.6% – 1.9% | 8.53% |
| Texas | 0% | 1.6% – 2.5%+ | 8.20% |
| Florida | 0% | 0.82% | 7.00% |
> Data Source: Tax Foundation & 2025 State Comptroller Reports.
The Texas “Property Tax” Surprise
This is where the math gets messy. While the Texas statewide average property tax is around 1.6%, the major metros where you actually want to live (Austin, Dallas, Houston) are much more aggressive.
- Austin (Travis County): Rates frequently hit 2.18%.
- Dallas/Fort Worth: Can exceed 2.2% – 2.5% in new developments (MUDs).
The Math:
If you buy a $800,000 house in Austin, your annual tax bill is roughly $17,440.
If you buy an $800,000 house in California (Prop 13 protected), your bill might only be $5,680.
That $11,000 difference eats up a huge chunk of your “Income Tax Savings.”
Visualizing “Real Buying Power”
It’s not just taxes. It’s the cost of life. Housing in Austin has skyrocketed, with median home prices now rivaling parts of the Northeast.
> Infographic Concept: Imagine two stacks of money representing $150k. The “NYC Stack” is sliced deeply by Income Tax. The “Austin Stack” is sliced by Property Tax and higher Utility/Car costs (since you can’t take the subway).
The Formula for Real Wealth:
The Tool: Calculate Your True Net Income
Stop guessing. Plug in your current salary and your target state below. This calculator factors in:
- Federal & State Income Tax (2025 Brackets).
- Property Tax Estimates (Based on state averages).
- Sales Tax Impact (Based on estimated spend).
*Based on 2025 Cost of Living Indices (National Avg = 100). Sources include MERIC & C2ER. Actual costs vary by city.
Does the Move Make Sense?
Sometimes, staying in a “High Tax” state with a higher salary and lower property tax (like renting in CA) actually nets you more wealth than owning a home in a “No Tax” state with sky-high property levies.
Run the numbers. Then tell me in the comments:
- Did the calculator surprise you?
- Which state gave you the highest “Real Buying Power”?
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