Washington vs Texas Salary Comparison (2026)
Washington and Texas both charge $0 on wage income. The difference: Washington's 7% capital gains tax above ~$262k of net long-term gains, plus higher sales tax (~10.1% in Seattle), and very high property tax in some metros.
Where this salary lands you
Tech workers with significant RSU vests sometimes save real money by being in Texas — RSU vests are wage income (not capital gains), so neither state taxes them, but if you sell large concentrated positions, Texas keeps the gains untouched while WA can take 7%.
Federal & FICA breakdown
State-comparison pages don’t lock in a single salary — use the live tool below to compare any income.
WA wages = $0 state tax (matches TX). WA capital gains over $262k = 7%. TX charges $0 on both.
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 Washington?
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.