I Asked ChatGPT How Much You Would Save If You Moved to a Zero-Tax State — Here’s the Math
Written by
Jacob Wade
Edited by
Levi Leidy
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Moving to a zero-income-tax sounds great, but the savings might not be as great as you think. So I asked ChatGPT to break down three scenarios of moving from a state with state income taxes to one without state income taxes.
Here’s the math behind what you could save if you move to a zero-tax state (according to ChatGPT).
‘ChatGPT, How Much Can I Save Moving to a Zero-Tax State?’
Moving to a zero-income-tax state sounds like an automatic raise. And in one narrow sense, it is: If your new home state does not levy a tax on wage income, the state income tax line on your return can drop to $0.
But the real savings depend on where you’re moving from, how much you earn and what you give up or pick up in other taxes (sales tax, property tax, fees). Below, I’ll run three straightforward examples at three income levels, using state income tax only to keep the comparison clean.
Quick note on terms: “Zero tax” is shorthand. States like Texas, Florida and Tennessee do not tax wages at the state level, but you will still pay federal taxes and plenty of other state and local taxes. Also, there are nine total states with no state income tax on earned income.
The Ground Rules for the Math
To avoid turning this into a tax textbook, I’m using a simple set of assumptions:
- Single filer
- W-2 wage income only
- No itemized deductions or special credits
- State income tax only (no local city income taxes; no property or sales tax)
This won’t match every real tax return. It will give you a realistic ballpark for “how much state income tax goes away” when you move.
Example 1: $60,000 Income
Illinois to Tennessee
Illinois is easy to estimate because it uses a flat individual income tax rate of 4.95%.
- Income: $60,000
- Estimated Illinois state income tax: $60,000 x 4.95% = $2,970
- Estimated Tennessee state income tax on wages: $0 (no state wage income tax)
Estimated annual savings: $2,970
That’s about $248 per month.
What this means in real life: At a $60,000 income, moving to a no-income-tax state can cover a car payment, a chunk of day care or meaningfully increase your emergency fund contributions.
Example 2: $150,000 Income
New York (State) to Florida
New York uses a graduated system with multiple brackets. New York also has an official tax year 2025 standard deduction of $8,000 for single filers.
Step 1: Estimate taxable income (simplified)
- Income: $150,000
- Less New York standard deduction (single): $8,000
- Estimated New York taxable income: $142,000
Step 2: Apply New York’s brackets (state only)
Using the published bracket structure for single filers, the estimated New York state income tax on $142,000 of taxable income comes out to about $7,952.
Florida has no state income tax on wages, so the comparable figure is $0.
Estimated annual savings: $7,952
That’s about $663 per month.
Important nuance: This is New York State only. If you live in New York City or Yonkers, local income tax can add another layer. In other words, the New York-to-Florida savings could be meaningfully higher for New York City residents than what’s shown here.
Example 3: $400,000 income
California to Texas
California is the classic high-income-tax comparison because it has multiple brackets, topping out in the double digits. For this estimate, I’m using the published California brackets for single filers and California’s standard deduction for the referenced year.
Step 1: Estimate taxable income (simplified)
- Income: $400,000
- Less California standard deduction (single): $5,540
- Estimated California taxable income: $394,460
Step 2: Apply California’s brackets
On $394,460 of taxable income, the estimated California state income tax is about $33,565.
Texas has no state income tax on wages, so the comparable figure is $0.
Estimated annual savings: $33,565
That’s about $2,797 per month.
Result? At this income level, state income tax is not just “a little less withholding.” It can be the difference between maxing out retirement accounts and not, paying down a mortgage years earlier or building a taxable investment portfolio much faster.
Side-by-Side sSummary
| Income | Move | Estimated state income tax before | After (zero income tax state) | Estimated annual savings |
| $60,000 | Illinois to Tennessee | $2,970 | $0 | $2,970 |
| $150,000 | New York (state only) to Florida | ~ $7,952 | $0 | ~$7,952 |
| $400,000 | California to Texas | ~ $33,565 | $0 | ~$33,565 |
The Part People Forget: No Income Tax Does Not Mean No Tax
States that skip wage income tax still need revenue. Often, the trade-off shows up in sales taxes, property taxes, fees or a higher overall cost in specific areas. Unfortunately, states without income tax frequently rely more on other taxes.
So before you pack boxes, sanity-check these three buckets:
- Housing math: If home prices jump (or property taxes are higher), that can eat your income tax “raise” quickly.
- Spending habits: Higher sales tax hurts more if you spend a large percentage of your income.
- Local taxes: Some places tack on local sales taxes and fees; and in certain states, cities add their own income tax (like New York City).
Editor’s note: The figures and examples provided are estimates and should not be considered financial, tax or legal advice. Tax outcomes vary based on individual circumstances, filing status, deductions, credits and changes in tax law. Readers should consult a qualified tax professional or financial advisor before making decisions based on this information.
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