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

Photo by pathdoc /

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.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
7 Effortless Ways to Make Extra Money

In the digital age, new ways of earning cash crop up all the time — and some require next to no effort on your part.

4 Streaming TV Services That Cost $20 a Month — or Less

Here’s how to ditch cable — and save a bundle — without giving up your favorite shows.

The Best and Worst States for Raising a Family in 2021

These states have big advantages or disadvantages when it comes to choosing a home for your family.

The 5 Worst Home Upgrades for the Money

These home improvement projects basically never pay off.

5 Renovations That Can Impact Your Home Insurance

Home improvements can affect your home insurance policy for the better, the worse or both.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
10 Things Frugal People Never Buy

If you’re a true tightwad, the mere thought of spending money on these items gives you the willies.

10 Useless Purchases You Need to Stop Making

You might as well flush your money down the loo if you spend it on these things.

7 Social Security Rules Everyone Should Know by Now

Confusion over Social Security is a shame, considering how many of us will need this money badly.

If You Find This Thrift Shopping, Buy It

They don’t make coffee makers like this anymore.

7 Social Security Benefits You May Be Overlooking

There’s more to Social Security than retirement benefits.

3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

14 Things You Should Stop Buying in 2021

These convenient household products come with hidden costs that you might not have considered.

The 6 Best Investing Apps for Beginners

If you’re looking to ease into investing in the coronavirus economy with just a little money, check out these easy-to-use tools.

Is Writing a Check Still Safe?

Every time you pay by check, you hand your bank account numbers to a stranger.

8 Things You Should Replace to Improve Your Life Today

Being frugal isn’t smart if you put off replacing these items.

6 Ways to Protect Your Retirement Accounts From Hackers

Imagine having $245,000 stolen from your retirement account — and not being reimbursed.

9 Mistakes People Make When Cleaning With Vinegar

Cleaning with vinegar can save you a lot of money, but using it like this can cost you.

13 Amazon Purchases We Are Loving Right Now

These practical products make everyday life a little easier.

7 Income Tax Breaks That Retirees Often Overlook

Did you realize all these tax credits and deductions exist — or that they apply to retirees?

7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

7 Hidden Sections of Amazon Every Shopper Should Know

These little-known departments of Amazon are gold mines for deal-seekers and impulse shoppers alike.

7 Costly Health Problems That Strike After Age 50

As we age, our bodies wear down. Here is how to cut costs associated with some common ailments.

7 Things I Never Buy at Costco

A bulk buy isn’t always the best buy.

Homeowners Say These 2 Kitchen Appliance Brands Are Best

One brand takes five of the top honors, while another ranks highest in three categories.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.