Georgia vs Texas Take-Home Pay Showdown
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 5.75% in Georgia versus no income tax in Texas translates to about $3,450 per year at $60,000. Texas balances this through no income tax. Recent data shows young professionals migrating to Texas, corporate relocators to Georgia based on broader considerations.
The spread between Georgia (5.75%) and Texas (no income tax) creates noticeable paycheck differences. At $60,000, you're facing roughly $3,450 in annual tax variance. How much that matters depends on your broader financial picture.
🔑 Key Differences
- **State income tax**: Georgia at 5.75% vs Texas at no income tax
- **Annual savings** (on $60,000): Texas saves you ~$3,450
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | Georgia | Texas |
|---|---|---|
| State Income Tax | 1% - 5.75% | No Income Tax Winner |
| 💰 On $40,000 Salary |
State Tax: $1,350
Take Home: $38,650
|
State Tax: $0
Take Home: $40,000
+$1,350
|
| 💰 On $60,000 Salary |
State Tax: $2,025
Take Home: $57,975
|
State Tax: $0
Take Home: $60,000
+$2,025
|
| 💰 On $100,000 Salary |
State Tax: $3,375
Take Home: $96,625
|
State Tax: $0
Take Home: $100,000
+$3,375
|
| Cost of Living | Georgia offers solid value in most areas. Atlanta's housing costs have increased with economic growth but remain well below major coastal cities. Quality homes in good Atlanta suburbs often sell for $300,000-400,000 - prices that would require $600,000+ in expensive metros. Savannah, Augusta, and Macon provide even better affordability. Property taxes stay moderate, though increasing in desirable areas. Groceries and services cost less than national averages. Atlanta traffic can be severe, but lower housing costs often allow living closer to work than in sprawling, expensive metros. Overall, your income stretches considerably further than in northeastern or western high-cost states. | Texas costs vary dramatically by region. Austin housing has exploded - median prices often exceed $500,000 in desirable areas. Parts of Dallas expensive. Houston offers better value given size. San Antonio, Fort Worth, and smaller cities maintain genuine affordability. Property taxes run high - often $4,000-8,000 annually even for modest homes. Sales tax reaches 8.25%. The no-income-tax advantage creates meaningful benefit, though property taxes substantial. |
Pros & Cons
Georgia
✓ Advantages
- Moderate state income tax topping at 5.75%
- Atlanta offers major city amenities at reasonable costs
- Strong job market in logistics, tech, and entertainment
- Mild climate with lower heating/cooling costs than extremes
- Growing economy attracting companies and workers
⚠ Considerations
- Atlanta traffic congestion can be severe
- Sales tax reaches 8-9% in metro Atlanta
- Property taxes increasing in desirable areas
- Hot humid summers
- Public transportation limited outside MARTA coverage
Texas
✓ Advantages
- Zero state income tax keeps more money in your paycheck
- Diverse economy with opportunities in energy, tech, healthcare, and manufacturing
- Housing costs substantially lower than California or Northeast states
- No state estate or inheritance tax
- Business-friendly environment attracts employers
⚠ Considerations
- Property taxes average 1.6% of home value
- Sales tax ranges from 6.25% to 8.25%
- Summer heat can be intense
- Public transportation limited outside major cities
- Health insurance costs often higher
Bottom Line
The numbers favor Texas by approximately $3,450 yearly for $60,000 earners. That said, Georgia continues attracting residents who value no income tax. Whether that tax difference outweighs Georgia's edge in {factor} comes down to your personal situation and priorities.📢 Share This Comparison
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