State Taxes vs. Cost of Living Impact
When moving states, you face two financial levers: Cost of Living (how much things cost) and State Income Tax (how much you keep). A savvy move considers both.
If you earn $150k in CA, you pay ~$9,300 in state tax. In TX, you pay $0. Combined with Texas's lower cost of living, your purchasing power drastically increases.
Don't just accept a salary match. If moving to a higher-cost state, use the "Equivalent Salary" from this calculator as your minimum baseline for negotiation.
What is a Real Wage?
Your Nominal Wage is the dollar amount on your paycheck. Your Real Wage is what that paycheck can actually buy after inflation and location-based price differences. This calculator determines your Real Wage in a new location.
Common Moving Scenarios
Leaving Silicon Valley (CA) for Austin (TX)? While salaries might be lower in Texas, the 15-20% lower cost of goods means your dollar goes much further.
Retiring on a fixed pension? Moving from high-cost NY to Florida can effectively give you a 10-15% "raise" purely through increased purchasing power.
Keeping your Seattle salary but moving to Alabama? You could see a massive surplus in disposable income due to Alabama's low RPP score.
Offered a $20k raise to move to Massachusetts? Use this tool to ensure the higher cost of living doesn't eat up your entire raise.
Stuck renting in DC (112.8)? Moving to North Carolina (93.4) might instantly unlock homeownership. Use the tool to see the housing cost gap.
Choosing between $80k in NYC vs $60k in Ohio? The calculator often reveals that the lower salary in Ohio results in higher disposable income.
How We Calculate Cost of Living Differences
This calculator uses data from the U.S. Bureau of Economic Analysis (BEA), specifically the Regional Price Parity (RPP) index.
The national average price level is set to 100.
- States with an RPP above 100 (e.g., California ~112) are more expensive than the national average.
- States with an RPP below 100 (e.g., Mississippi ~86) are cheaper than the national average.
By comparing the ratio of these two numbers, we can accurately project how much equivalent income is needed to buy the exact same basket of goods (rent, food, utilities, services) in a new state.
State Price Rankings (Relative to Average)
US Average Cost of Living = 100. Green is Cheaper, Red is More Expensive.
Scroll to see all states.
2024 State Tax Rates Reference
Understanding State Tax Systems:
- No Tax States like Texas or Florida levy 0% tax on standard wages.
- Flat Tax Applies a single fixed rate to all income. Example: In Pennsylvania (3.07%), earning $50k or $500k is taxed at the exact same percentage.
- Progressive Rates increase as you earn more. The table shows the Range (Lowest Bracket % – Highest Bracket %). Example: In California (1% - 13.3%), your first dollars are taxed cheaply, but income over ~$1M hits the highest rate in the country.
*Data Source: Simplified 2024 tax brackets adapted from the Tax Foundation and individual state revenue departments.
Data Source: This calculator uses the official Regional Price Parities (RPP) dataset provided by the U.S. Bureau of Economic Analysis.
Frequently Asked Questions
Where does the 'Top 5 Expenses' data come from?
These are calculated estimates based on two official sources. We use the 'average household budget' breakdown from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, and then adjust each category (like Housing or Groceries) using the specific state's RPP price level from the BEA. We also apply an 'elasticity factor'—for example, we make housing costs swing more drastically between states than groceries, reflecting real-world market dynamics.
Does this include state income tax?
This calculator focuses on Purchasing Power (the cost of goods and services). While high-cost states often correlate with higher taxes, this tool strictly measures price levels. You should factor in state income tax (e.g., 0% in Texas/Florida vs high in CA/NY) separately as a final step.
Is rent included in this calculation?
Yes. The BEA's RPP data includes housing rents as a significant component of the "basket of goods," along with food, transportation, and medical services.
Why is my city different from the state average?
State averages can mask city differences. For example, New York State has a lower average cost than New York City specifically. If moving to a major metro area, assume costs will be 10-20% higher than the state average shown here.