New York vs Texas: Taxes & Take-Home Pay 2026
On a $100,000 salary you keep $73,877 in New York and $79,180 in Texas — $5,303 more per year in Texas ($442 a month). Single filer, standard deductions.
Updated 2026-10-03
Take-home pay at every salary
| Gross salary | New York | Texas | Difference |
|---|---|---|---|
| $40,000 | $32,553 (18.6% tax) | $34,320 (14.2% tax) | -$1,767 |
| $60,000 | $47,457 (20.9% tax) | $50,390 (16.0% tax) | -$2,933 |
| $75,000 | $57,784 (23.0% tax) | $61,593 (17.9% tax) | -$3,808 |
| $100,000 | $73,877 (26.1% tax) | $79,180 (20.8% tax) | -$5,303 |
| $150,000 | $105,538 (29.6% tax) | $113,791 (24.1% tax) | -$8,253 |
| $250,000 | $168,776 (32.5% tax) | $183,182 (26.7% tax) | -$14,406 |
- New York total tax rate
- Texas total tax rate
Where the money goes at $100,000
- New York
- Texas
Sales tax: 8.54% in New York vs 8.20% in Texas (average combined rate).
About taxes in New York
- Starting January 1, 2026, New York cut the rates on its first five brackets (to 3.9%, 4.4%, 5.15%, 5.4% and 5.9%) under Chapter 59 of the Laws of 2025.
- The 2026 standard deduction is $8,000 for single filers, $16,050 for married couples filing jointly and $11,200 for heads of household; each dependent adds a $1,000 exemption.
- Rates above 5.9% are unchanged: 6.85%, 9.65%, 10.3% and 10.9% on taxable income over $25 million.
- Higher earners face a tax-benefit recapture: once New York AGI exceeds $107,650, the benefit of the lower brackets is gradually phased out.
- In 2026 employees pay 0.432% of wages for Paid Family Leave, up to a maximum of $411.91 for the year, plus up to $0.60 a week for disability insurance.
About taxes in Texas
- Texas has no personal income tax, and the state constitution requires voter approval before one could be created.
- The state sales and use tax is 6.25%. Local governments can add up to 2%, for a maximum combined rate of 8.25%.
- The average combined sales tax rate is 8.20% (Tax Foundation, 2026).
- Texas raises much of its local revenue through property taxes, which are among the highest in the country.
New York vs Texas: income tax against property tax
Texas has no personal income tax. New York taxes income at 3.9% to 10.9%, and New York City residents add 3.078% to 3.876%. For anyone weighing Dallas, Houston or Austin against New York, the income tax saving is substantial at every income.
Texas makes up some of the difference with property taxes. For a homeowner, the full comparison is New York income tax saved against Texas property tax paid on the new home.
Worked example: family of four on $200,000
Married filing jointly, two children under 17, standard deductions.
- Texas leaves this family $16,866 more than New York City and $10,038 more than the rest of New York State.
- The New York figures exclude the Empire State Child Credit, which would reduce them, and the high-income recapture, which would increase them.
| Annual amount | New York City | New York State (outside NYC) | Texas |
|---|---|---|---|
| State income tax | $9,595 | $9,595 | $0 |
| City income tax | $6,828 | $0 | $0 |
| State payroll programs | $443 | $443 | $0 |
| Take-home pay | $146,855 | $153,683 | $163,721 |
Texas property tax in practice
Texas has no state property tax; each local taxing unit (county, city, school district, special district) sets a rate, and the county appraisal district sets the value. Bills apply to current appraised value, not purchase price.
The school district homestead exemption is $140,000, plus $60,000 for owners 65 or older or disabled, and local units can add up to 20% of value. On a $450,000 home, school taxes are charged on $310,000 of value. Apply on Form 50-114 after you buy.
In New York, property taxes are also set locally, and eligible homeowners receive the STAR school tax credit. New York City and suburban counties work very differently, so compare actual bills for the specific homes you are considering.
Working remotely from Texas for a New York employer
This is where many New York-to-Texas movers get caught. If your primary office is in New York and you telecommute from Texas, New York treats your telecommuting days as New York workdays unless your employer has established a bona fide employer office at your home. A $180,000 single earner in that position could still owe roughly $9,580 of New York nonresident tax on Form IT-203, even though Texas has no income tax and there is no other state’s tax to credit.
If the job is reassigned to a Texas office, or the employer formally sets up your home office, the wages become Texas-source and New York tax stops. Get that change in writing and make sure payroll reflects it.
Business trips back to New York are a separate issue: days you physically work in New York are New York-source under any arrangement, so a Texas resident who spends a week in the Manhattan office each quarter still files an IT-203 for those days.
What else changes when you move
Beyond income and property tax, a few smaller items shift:
- Sales tax: 8.20% average combined in Texas, with a 8.25% maximum; 8.54% average in New York and 8.875% in New York City.
- Payroll: New York’s disability (up to $0.60 a week) and Paid Family Leave (0.432%, capped at $411.91) deductions disappear; Texas has no employee-paid state programs.
- Retirement: Texas taxes no retirement income. New York already exempts Social Security and government pensions and excludes up to $20,000 of other qualified pension and annuity income from age 59½.
- Part-year filing: Form IT-203 for the move year; no Texas return.
Frequently asked questions
Is New York or Texas better for taxes?
At $100,000, Texas leaves you $5,303 more per year after income and payroll taxes. The gap widens at higher incomes ($14,406 at $250,000).
How much is $60,000 after tax in New York and Texas?
$47,457 in New York and $50,390 in Texas.
Do I owe New York tax if I work from Texas for a New York company?
Often yes. Under New York’s convenience rule, telecommuting days count as New York workdays unless your employer has established a bona fide office at your home.
Are Texas property taxes higher than New York’s?
It depends on the location. Both are set locally. Texas bills apply to current appraised value minus the homestead exemption; compare actual bills for the homes you are considering.
Do I file a New York return the year I move to Texas?
Yes. File Form IT-203 as a part-year resident, reporting all income while a New York resident and New York-source income after the move. Texas has no individual income tax return.
How much is the Texas homestead exemption for school taxes?
$140,000, plus $60,000 more for homeowners 65 or older or disabled.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.
- NYS Tax Department – IT-2105-I (2026) estimated tax instructions with 2026 rate schedules
- NYS Tax Department – NYS-50-T-NYS withholding tables effective January 1, 2026
- NY Paid Family Leave – 2026 rates
- Tax Foundation – 2026 State Tax Changes
- Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026)
- Texas Comptroller: Sales and Use Tax
- Rev. Proc. 2025-32 (2026 inflation adjustments incl. OBBBA)
- IRS: Tax inflation adjustments for tax year 2026, including OBBBA amendments
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- NYS Tax Department – Nonresidents and part-year residents FAQs (telecommuting rule)
- NYS Tax Department – Tax benefits for retired persons
- NYS Tax Department – STAR property tax relief
- Texas Comptroller – Property tax exemptions (residence homestead)
- Texas Comptroller – Property tax
- NYS DTF, New York City resident tax rate schedule (IT-201 instructions)