Tennessee vs Texas Salary Comparison (2026)
Tennessee has no wage income tax (the Hall income tax on interest/dividends was repealed in 2021). Texas has no income tax of any kind. Take-home is the same; the decision turns on property tax, sales tax, and economy.
Where this salary lands you
TN property tax (~0.6%) is far lower than TX (~1.9%). TN sales tax (9.55% combined statewide) is higher than TX (8.25% capped). Nashville and Austin compete for tech relocators; Memphis and Houston for logistics and energy.
Federal & FICA breakdown
State-comparison pages don’t lock in a single salary — use the live tool below to compare any income.
$0 state income tax in both — comparison is on cost of living and economy.
Compare Texas to other states
| Line item | Texas | California |
|---|---|---|
| Gross | $150,000 | $150,000 |
| Federal income tax | $24,953 | $24,953 |
| State income tax | $0 | $9,032 |
| FICA | $11,475 | $11,475 |
| Take-home | $113,572 | $104,540 |
| Effective rate | 24.3% | 30.3% |
Texas keeps you $9,032 more per year on this salary versus California at the income-tax line. Cost of living, housing, and property taxes still need to be factored in separately.
Frequently asked questions
Does Texas truly save more than Tennessee?
On the income-tax line: yes, at every income level. On total cost of living, the answer depends on housing, insurance, and personal lifestyle factors. Run our calculator and compare against your specific budget.
Are there any catches?
Yes — Texas property tax is higher than most states, and home/auto insurance can be more expensive in coastal Texas. For renters, Texas almost always wins. For homeowners, the calculus depends on the home's price.
How do I actually change residency?
Establish a Texas address, get a Texas driver's license within 90 days, register to vote here, update HR and brokerage addresses, and file a part-year return for your old state covering the period you lived there. See our Moving to Texas Tax Guide.