Texas vs Utah: Tax Impact on Your Salary
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 Texas delivers about $3,638 more in annual take-home at $75,000 (no income tax versus 4.85%). Utah keeps competitive by providing outdoor recreation. The decision often centers on job market rather than tax rates alone.
Texas charges no income tax while Utah sits at 4.85%. For $75,000 earners, that difference translates to approximately $3,638 per year. It's a meaningful gap, though hardly the only consideration in a state-to-state comparison.
🔑 Key Differences
- **State income tax**: Texas at no income tax vs Utah at 4.85%
- **Annual savings** (on $75,000): Texas saves you ~$3,638
- **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 | Texas | Utah |
|---|---|---|
| State Income Tax | No Income Tax Winner | 4.85% |
| 💰 On $40,000 Salary |
State Tax: $0
Take Home: $40,000
+$1,940
|
State Tax: $1,940
Take Home: $38,060
|
| 💰 On $60,000 Salary |
State Tax: $0
Take Home: $60,000
+$2,910
|
State Tax: $2,910
Take Home: $57,090
|
| 💰 On $100,000 Salary |
State Tax: $0
Take Home: $100,000
+$4,850
|
State Tax: $4,850
Take Home: $95,150
|
| Cost of Living | 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. | Utah costs have increased substantially. Salt Lake City and surrounding areas command prices approaching expensive metros - median home prices often exceed $450,000-500,000. Provo-Orem follows similar trajectory. Smaller Utah cities offer better value. Property taxes stay moderate. Sales tax reaches 7-8%. The affordability advantage Utah once offered has compressed significantly as technology sector drives population growth and housing demand. |
Pros & Cons
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
Utah
✓ Advantages
- Flat 4.65% income tax is simple and predictable
- Strong growing technology sector
- Beautiful outdoor recreation and skiing
- Lower unemployment rates
- Young educated workforce
⚠ Considerations
- Rising housing costs especially in Salt Lake area
- Air quality issues in winter months
- Limited public transportation
- Sales tax can be high
- Some areas face water scarcity
Bottom Line
From a tax standpoint, Texas delivers about $3,638 more take-home at $75,000. Utah compensates through outdoor recreation, keeping it competitive for certain demographics. entrepreneurs tend to choose Texas, while skiers populations often lean toward Utah despite higher taxes.📢 Share This Comparison
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