The States That Withhold the Most — and Least — From Your Paycheck

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

7 Dumb and Costly Moves Homebuyers MakeBorrow

This Free Software Brings Old Laptops Back to LifeMore

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Beware These 12 Common Money MistakesCredit & Debt

21 Restaurants Offering Free Food Right NowSaving Money

17 Ways to Have More Fun for Less MoneySave

House Hunters: Beware of These 6 Mortgage MistakesBorrow

30 Household Uses for Baby OilSave

25 Ways to Spend Less on FoodMore

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

5 Surprising Benefits of Exercising Outdoors in WinterFamily

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

The True Cost of Bad CreditCredit & Debt

10 Companies With the Best 401(k) PlansGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

6 Stores With Awesome Reward ProgramsFamily

6 Ways to Save More at Lowe’s and The Home DepotSave

6 Healthful Treats for Your DogFamily

New Study Ranks the Best States in the U.S.Family

Thousands of Millionaires Moving to 1 Country — and Leaving AnotherGrow

Strapped for College Costs? How to Get the Most From FAFSABorrow

6 Overlooked Ways to Save at Chick-fil-AFamily

Ask Stacy: What’s the Fastest Way to Pay Off My Mortgage?Borrow

Where to Sell Your Stuff for Top DollarAround The House

8 Ways to Get a Good Price on a Shiny New AutoCars

Ask Stacy: How Do I Start Over?Credit & Debt

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

30 Awesome Things to Do in RetirementCollege

14 Super Smart Ways to Save on TravelSave

The Rich Prefer Modest Cars — Should You Join Them?Cars

You’ll Soon Pay More to Shop at CostcoSave

10 Ways to Save When Your Teen Starts DrivingFamily

Thanks to withholding rules, your take-home pay might be almost $150 less in one state than in other states.

When I moved from Indiana to Florida two years ago, I was excited not for the climate change but for the tax change.

Indiana taxes residents’ income, but Florida does not. For me in 2015, that meant I’d keep at least an extra 3.3 percent of my paychecks after the move.

Crossing state lines can make a big difference in your take-home pay. In fact, one state — Hawaii — withholds more than $542 from every median-salary worker’s paycheck, a recent GOBankingRates analysis found. By contrast, several other states withhold just under $403.

For the analysis, the financial data site calculated how much money is withheld per paycheck in every state and Washington, D.C., for a worker making $50,000 a year.

Depending on the state, these withholding amounts can include:

  • Federal income taxes
  • Federal Insurance Contributions Act (FICA) taxes — better known as Social Security and Medicare taxes
  • State income taxes
  • Family leave insurance
  • Unemployment insurance

GOBankingRates found that the worst state for withholding for someone who makes $50,000 a year — or $1,923.08 biweekly — is Hawaii. From every paycheck, $542.24 would be withheld.

For someone making a median-range salary of $50,000, the five worst states for withholding are:

  1. Hawaii
  2. Oregon
  3. Idaho
  4. South Carolina
  5. Minnesota

The study also looked at the impact on higher-salary workers. For someone who makes $100,000 a year, the worst states are:

  1. Oregon
  2. California
  3. Hawaii
  4. Idaho
  5. Washington, D.C.

The states that take the least money out of residents’ paychecks have a key characteristic in common: no state income tax. These states are:

  • Alaska
  • Florida
  • Nevada
  • New Hampshire
  • South Dakota
  • Tennessee
  • Texas
  • Washington
  • Wyoming

In all of these states except Alaska, $402.93 would be withheld from the biweekly paycheck of someone who earns $50,000 a year.

In Alaska, which withholds money for a state unemployment tax, $412.55 would be withheld from the biweekly paycheck of someone with a $50,000 salary.

To see exactly how much is withheld in every state, check out the full analysis by GOBankingRates.

While withholding amounts might comprise a big chunk of a paycheck in any state, they aren’t the only financial factor to consider when crossing state lines. To learn about other factors, check out:

How would you rate your state based on financial factors? Let us know below or on Facebook.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: The 17 Best States for Retirees in 2017

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,961 more deals!