State Income Tax
Does the state you’re moving to have state income tax? Currently, nine states do not have a state income tax on individuals in place:
- Alaska
- Florida
- Nevada
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington (only taxes capital gains income)
- Wyoming
Fourteen states have single-rate tax structures, meaning the same tax rate is applied to all income ranges. The remaining 27 states have graduated tax rates, spanning from 2.5% to 13.3% as of 2025.
Find your new state’s tax income rate here.
Property Tax
Property taxes not only vary widely by state, but also by local jurisdictions within the state. States set the legal framework for property taxes, while the tax itself is collected at the local level. You’ll find the lowest effective property tax rate of 0.29% in Hawaii, while New Jersey currently sports the highest rate of 2.47%.
Sales Tax
Sales tax rates also vary widely by both states and local jurisdictions. Generally speaking, states that have no income tax tend to have higher sales tax rates to make up for the gap in tax revenue. For example, though Tennessee has no income tax, the state does have a flat sales tax rate of 7%. Combine this with additional sales tax charged at the local level like Nashville’s 2.75% local sales tax rate, and you could be looking at nearly a 10% sales tax on your purchased goods.
Find your new state’s sales tax rate here.
State Estate Tax
An estate tax levied at the federal level is common knowledge, but some states also impose their own state and inheritance taxes, as well.
Twelve states, in addition to the District of Columbia, have estate taxes in place, ranging from 0.8% to 20% depending on the state and estate value:
- Connecticut
- District of Columbia
- Hawaii
- Illinois
- Maine
- Maryland
- Massachusetts
- Minnesota
- New York
- Oregon
- Rhode Island
- Vermont
- Washington
Exemption amounts vary by state, as well.
Additionally, five states have an inheritance tax:
- Kentucky
- Maryland (also has an estate tax)
- Nebraska
- New Jersey
- Pennsylvania
An inheritance tax is a tax on the assets the heir receives from an estate. The beneficiary is responsible for paying this tax, not the estate.
Find your state’s 2025 estate and inheritance tax rate here.
State and Local Tax (SALT) Deduction
Moving to a state with high tax rates?
If itemizing your deductions (rather than taking the standard deduction), you may be able to take advantage of the State and Local Tax (SALT) deduction. With this deduction, you can subtract from your federal taxable income certain state and local taxes you have paid. This prevents you from being taxed twice on the same portion of your income—once by the state and again by the federal government.
There’s more good news for the SALT deduction. For tax years 2025 to 2029, the cap on the state and local tax (SALT) deduction increases from $10,000 to $40,000, with annual 1% increases. A phase-out back down to the original $10,000 cap takes place for Single and Married Filing Jointly filers with modified adjusted gross income (MAGI) over $500,000. (Those using the Married Filing Separately status are phased out when MAGI is over $250,000.) In 2030, unless further legislation is passed, the SALT cap will revert back to $10,000.
Your CPA can help you determine if taking the SALT deduction is the right tax strategy for you.
Capital Gains on Your Home Sale
Selling your current home in order to move to a new state? You may be able to claim the federal home sales gain exclusion. This exclusion allows you to exclude up to $250,000 of capital gain from your income on the sale of your home. Joint filers can exclude up to $500,000 on their federal income tax return. To qualify for the exclusion, you must have owned and used the home as your principal residence for at least two of the five years prior to the sale. State treatments related to the capital gains from selling your home vary, so you will need to check the tax rules for the state you are moving from.
Develop the right tax strategy with Landmark CPAs
Whether moving to a new state or staying put where you are, your tax strategy should fit your unique financial situation. Work with a Landmark CPA to ensure you take advantage of all applicable tax deductions and credits.
