California vs No-Income-Tax States
Compare your real take-home pay: California with state income tax and SDI vs Texas, Florida, Nevada, and the other 6 no-income-tax states. Enter your salary for a live side-by-side breakdown.
In Texas, you keep $332 more per paycheck ($8,628 more per year)
The difference is primarily California state income tax ($7,068 annual) and SDI ($1,560 annual)
California vs Texas: Biweekly Take-Home at Common Salaries
Single filer, standard deductions, no pre-tax contributions. 2026 tax rates.
| Annual Salary | CA Biweekly Take-Home | TX Biweekly Take-Home | TX Advantage (per paycheck) |
|---|---|---|---|
| $80,000 | $2,335 | $2,504 | +$169/paycheck |
| $120,000 | $3,255 | $3,587 | +$332/paycheck |
| $160,000 | $4,145 | $4,639 | +$495/paycheck |
Texas has no state income tax and no SDI equivalent. Federal taxes, Social Security, and Medicare are identical in both states.
The 9 No-Income-Tax States (2026)
*New Hampshire taxes interest and dividend income but not wages. All no-income-tax states still collect federal income tax, Social Security, and Medicare from wages.
Before Deciding to Relocate, the Full Picture
The tax difference is real and significant. But California's taxes come with offsetting benefits that are worth factoring in:
Funded by SDI, California workers get up to 8 weeks of paid family leave at 70% of wages (up to 90% for lower-wage earners under SB 951, from 2025) for bonding with a new child or caring for a seriously ill family member. Texas has no equivalent state program.
If you can't work due to illness, injury, or pregnancy, California SDI pays 70% of your wages (up to 90% for lower-wage earners under SB 951) for up to 52 weeks. Texas has no equivalent.
California's $16.90/hour minimum wage vs Texas's $7.25/hour (federal minimum). For lower-wage workers, California's pre-tax wages are substantially higher.
California has robust employment law protections including paid sick leave, strict overtime rules, and significant anti-discrimination protections.
San Francisco and Los Angeles are expensive, but many California cities have lower cost of living than their reputation suggests. Compare your specific city, not just the state.
For cost of living comparisons, see costoflivingbystate.com ↗