Oklahoma vs Texas: Paycheck Calculator Comparison
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 Comparing 5.00% to no income tax yields roughly $5,000 difference per year on $100,000. Texas offsets taxes through no income tax. While families favor Texas's lower burden, corporate relocators frequently value Oklahoma's offerings in housing costs more highly.
Oklahoma charges 5.00% while Texas sits at no income tax. For $100,000 earners, that difference translates to approximately $5,000 per year. It's a meaningful gap, though hardly the only consideration in a state-to-state comparison.
🔑 Key Differences
- **State income tax**: Oklahoma at 5.00% vs Texas at no income tax
- **Annual savings** (on $100,000): Texas saves you ~$5,000
- **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 | Oklahoma | Texas |
|---|---|---|
| State Income Tax | 0.5% - 5% | No Income Tax Winner |
| 💰 On $40,000 Salary |
State Tax: $1,100
Take Home: $38,900
|
State Tax: $0
Take Home: $40,000
+$1,100
|
| 💰 On $60,000 Salary |
State Tax: $1,650
Take Home: $58,350
|
State Tax: $0
Take Home: $60,000
+$1,650
|
| 💰 On $100,000 Salary |
State Tax: $2,750
Take Home: $97,250
|
State Tax: $0
Take Home: $100,000
+$2,750
|
| Cost of Living | Oklahoma consistently ranks among America's most affordable states. Oklahoma City and Tulsa offer genuine metropolitan amenities with housing costs 50-60% below expensive markets. Quality homes in good neighborhoods typically sell for $150,000-250,000. Smaller Oklahoma cities provide even better value. Property taxes stay low statewide. No sales tax on groceries. Utilities, services, and general expenses all cost substantially less than national averages. The extreme affordability means moderate incomes support comfortable middle-class lifestyles. | 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
Oklahoma
✓ Advantages
- Moderate state income tax (max 4.75%)
- Very low cost of living statewide
- Extremely affordable housing
- Strong energy and aerospace sectors
- No state tax on Social Security benefits
⚠ Considerations
- Lower average salaries than national average
- Tornado risk in certain areas
- Hot summers
- Limited public transportation
- Some rural areas lack economic opportunities
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
Texas saves you roughly $5,000 annually at $100,000, which adds up over time. Oklahoma keeps drawing people despite the tax premium, largely due to no income tax. You'll find families gravitating toward Texas, while corporate relocators often decide Oklahoma's advantages justify the cost.📢 Share This Comparison
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