Texas vs. New York: What You Actually Keep

New York's top state income tax rate is 10.9%. Texas charges zero. At a $200,000 salary, that single difference can put $15,000 or more back in your pocket every year before you factor in anything else.

Income Tax: The Biggest Line Item

Texas has no state income tax. New York taxes income on a graduated scale starting at 4% and climbing to 10.9% for income above $25 million, with a 6.85% rate kicking in at just $215,400 for single filers.

For a $100,000 salary, a single filer in New York owes roughly $5,800 in state income tax. In Texas, that bill is $0. At $250,000, the New York state tax burden climbs to approximately $16,000. Texas residents at that income level keep every dollar of it.

Add New York City's local income tax of up to 3.876% if you live in the five boroughs, and the gap widens further. A NYC-based earner at $250,000 owes closer to $25,000 combined in state and city income tax. According to ADP's income calculator, the take-home difference between a $250,000 salary in Texas and a $400,000 salary in New York is roughly $5,000 per month. You need to earn 60% more in New York just to match Texas take-home pay.

For a full list of states where income tax is zero, see our post on states with no income tax in 2026.

Property Tax: Texas Gives Back Some of What It Takes

Texas does not give you a completely free ride. The state has no income tax partly because it leans heavily on property taxes. Texas's effective property tax rate is approximately 1.80%, one of the highest in the country.

New York's statewide effective property tax rate is around 1.72%, lower than Texas on paper. But that number is skewed by New York City's artificially compressed rates due to rent stabilization and co-op structures. In suburban New York, particularly Nassau, Westchester, and Rockland counties, effective rates routinely exceed 2.5%.

The more important variable is home value. The median home price in Texas is roughly $305,000. In New York state it is closer to $400,000, and in the New York City metro it exceeds $600,000. A 1.72% rate on a $600,000 home costs $10,320 per year. A 1.80% rate on a $305,000 Texas home costs $5,490. The absolute dollar burden is nearly double in New York even though the rate is lower.

For context on where Texas and New York rank nationally, our breakdown of states with the lowest property taxes shows how both compare to the full field.

Sales Tax and Everyday Costs

Sales tax is close but not identical. New York's combined state and local sales tax averages 8.52%. Texas averages 8.20%. Neither is a low-tax sales state, and neither should move the needle much in a relocation decision.

Cost of living is where the gap becomes impossible to ignore. New York's cost of living index sits around 139 (U.S. average = 100). Texas runs around 93. That means a dollar goes roughly 50% further in Texas than in New York.

Housing is the main driver, but utilities, groceries, and transportation all follow. The average monthly rent for a one-bedroom apartment in Manhattan exceeds $4,000. In Austin, the most expensive major Texas city, the same unit runs closer to $1,700. In Dallas or Houston, under $1,400.

Who Benefits Most From Moving

High earners gain the most. A household earning $400,000 in New York City faces a combined state and city income tax burden above $40,000. That same household in Texas owes nothing on income. The annual savings alone could cover a mortgage payment on a median-priced Texas home.

Retirees also come out ahead in Texas, particularly those drawing from investment accounts or Social Security. New York taxes Social Security benefits for higher earners and taxes most retirement income. Texas taxes neither. If you are planning retirement around what you actually keep, the comparison is not close.

For retirees specifically, our analysis of the best states for retirees to avoid taxes puts both states side by side with others worth considering.

Key Takeaways

• A single filer earning $100,000 pays roughly $5,800 in New York state income tax and $0 in Texas. At $250,000, that gap is approximately $16,000, before adding any NYC local tax.
• Texas property taxes average 1.80% but apply to lower home values. The median Texas homeowner pays about $5,490 per year. A suburban New York homeowner in Westchester paying 2.5% on a $600,000 home pays $15,000.
• New York's cost of living index is roughly 49% higher than Texas. A salary of $75,000 in Texas has the purchasing power of about $112,000 in New York.

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