Side-by-side tax comparison between Tennessee (no income tax) and Texas (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Both Tennessee and Texas have no state income tax, so the take-home pay difference at any salary level comes down to local taxes and cost of living. Federal tax and FICA are identical regardless of state.
Neither state imposes local income taxes, so the only difference is cost of living: Tennessee at 90 vs Texas at 93.
Tennessee wins at 0 out of 10 salary levels tested. The states are evenly matched.
| Salary | Tennessee | Texas | Difference | Winner |
|---|---|---|---|---|
| $40K | $34,320 | $34,320 | $0 | Tie |
| $50K | $42,355 | $42,355 | $0 | Tie |
| $60K | $50,390 | $50,390 | $0 | Tie |
| $75K | $61,538 | $61,538 | $0 | Tie |
| $100K | $79,125 | $79,125 | $0 | Tie |
| $120K | $93,195 | $93,195 | $0 | Tie |
| $150K | $113,751 | $113,751 | $0 | Tie |
| $200K | $148,887 | $148,887 | $0 | Tie |
| $250K | $183,264 | $183,264 | $0 | Tie |
| $300K | $215,329 | $215,329 | $0 | Tie |
Take-home pay only tells part of the story. Tennessee has a cost of living index of 90 while Texas is at 93 (national average = 100).
With similar costs of living (90 vs 93), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $87,917 in Tennessee vs $85,081 in Texas.
For a single earner at $100K filing jointly, take-home becomes $84,710 in Tennessee and $84,710 in Texas \u2014 a difference of $0. The gap remains similar regardless of filing status.
On paper, moving from Texas to Tennessee would save $0/year on a $100K salary, or $0 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $0/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.