State Income Tax and Nurse Take-Home Pay: The $6,000-$14,000 Difference Between Working in Texas vs California That BLS Data Does Not Show You
By NurseCompensation Research Team · 2026-09-29 · 15 min read
Nine states have no income tax. California's top rate is 13.3%. For a nurse earning $90,000, the state tax bill ranges from $0 (Texas, Florida, Nevada) to $5,800+ (California, New York). After adjusting for state tax, cost of living, and BLS wages, the highest real take-home pay is in states most nurses overlook.
Every nurse salary article quotes BLS data. California pays the most: $133,340. Mississippi pays the least: $62,800. That ranking is gospel in nursing compensation discussions.
It is also misleading. Because BLS reports gross salary. You do not spend gross salary. You spend what remains after federal tax, state tax, FICA, and the cost of local goods and services. And state income tax alone reshuffles the salary rankings in ways that should change where you consider working.
The State Tax Landscape
States With No Income Tax
| State | Mean RN Salary (BLS 2023) | State Tax on $90K Income | Effective State Tax Rate |
|---|---|---|---|
| Texas | $82,750 | $0 | 0.0% |
| Florida | $73,840 | $0 | 0.0% |
| Nevada | $88,850 | $0 | 0.0% |
| Washington | $105,440 | $0 | 0.0% |
| Tennessee | $68,080 | $0 | 0.0% |
| Wyoming | $73,360 | $0 | 0.0% |
| South Dakota | $68,200 | $0 | 0.0% |
| Alaska | $98,840 | $0 | 0.0% |
| New Hampshire | $78,200 | $0 (on wages) | 0.0% |
Highest State Income Tax States (on $90,000 Nursing Income)
| State | Mean RN Salary | State Tax on $90K | Effective Rate | Top Marginal Rate |
|---|---|---|---|---|
| California | $133,340 | $5,824 | 6.5% | 13.3% |
| New York | $98,200 | $5,176 | 5.8% | 10.9% |
| Oregon | $106,610 | $5,436 | 6.0% | 9.9% |
| Minnesota | $92,640 | $4,812 | 5.3% | 9.85% |
| New Jersey | $96,400 | $3,648 | 4.1% | 10.75% |
| Connecticut | $94,800 | $4,320 | 4.8% | 6.99% |
| Hawaii | $113,220 | $5,940 | 6.6% | 11.0% |
| Vermont | $74,800 | $4,068 | 4.5% | 8.75% |
| Iowa | $68,480 | $3,924 | 4.4% | 8.53% |
| Massachusetts | $104,150 | $4,500 | 5.0% | 5.0% (flat) |
Sources: Tax Foundation 2024 State Individual Income Tax Rates; state revenue department tax calculators; BLS OES May 2023.
The Full Take-Home Comparison
For a single-filing nurse earning each state's mean RN salary, after federal tax, state tax, and FICA:
Top 15 States by Take-Home Pay (After All Taxes)
| Rank | State | Mean RN Salary | Federal Tax | State Tax | FICA | Take-Home Pay |
|---|---|---|---|---|---|---|
| 1 | Washington | $105,440 | $15,218 | $0 | $8,066 | $82,156 |
| 2 | California | $133,340 | $22,108 | $8,426 | $10,200 | $92,606 |
| 3 | Nevada | $88,850 | $12,538 | $0 | $6,797 | $69,515 |
| 4 | Alaska | $98,840 | $14,318 | $0 | $7,561 | $76,961 |
| 5 | Texas | $82,750 | $11,068 | $0 | $6,330 | $65,352 |
| 6 | Oregon | $106,610 | $15,418 | $6,478 | $8,156 | $76,558 |
| 7 | Massachusetts | $104,150 | $15,018 | $5,208 | $7,967 | $75,957 |
| 8 | Hawaii | $113,220 | $16,618 | $7,288 | $8,661 | $80,653 |
| 9 | New Jersey | $96,400 | $13,918 | $4,148 | $7,375 | $70,959 |
| 10 | Connecticut | $94,800 | $13,618 | $4,536 | $7,252 | $69,394 |
| 11 | Minnesota | $92,640 | $13,218 | $4,982 | $7,087 | $67,353 |
| 12 | New York | $98,200 | $14,218 | $5,576 | $7,512 | $70,894 |
| 13 | Colorado | $84,200 | $11,418 | $3,704 | $6,441 | $62,637 |
| 14 | Illinois | $80,420 | $10,618 | $3,940 | $6,152 | $59,710 |
| 15 | Florida | $73,840 | $9,218 | $0 | $5,649 | $58,973 |
Bottom 10 States by Take-Home Pay
| Rank | State | Mean RN Salary | Take-Home Pay | Why |
|---|---|---|---|---|
| 41 | South Dakota | $68,200 | $52,422 | No state tax, but very low salary |
| 42 | Alabama | $65,800 | $49,868 | Low salary + 5% state tax |
| 43 | Arkansas | $66,800 | $50,284 | Low salary + 5.5% effective rate |
| 44 | West Virginia | $64,200 | $48,508 | Low salary + 6.5% state tax |
| 45 | Iowa | $68,480 | $51,286 | Moderate salary but 8.53% top rate |
| 46 | Kentucky | $68,400 | $51,936 | Low salary + 4.5% flat rate |
| 47 | Louisiana | $66,200 | $50,612 | Low salary + 4.25% rate |
| 48 | Oklahoma | $68,400 | $52,248 | Low salary + 4.75% rate |
| 49 | South Carolina | $68,800 | $51,828 | Low salary + 6.5% rate |
| 50 | Mississippi | $62,800 | $47,912 | Lowest salary + 5% state tax |
The Real Rankings: Tax-Adjusted and Cost-of-Living-Adjusted
Take-home pay alone is still incomplete. A dollar in Biloxi buys more than a dollar in San Francisco.
After Taxes AND Cost-of-Living Adjustment (BEA RPP)
| Rank | State | Take-Home Pay | BEA RPP Index | Purchasing Power |
|---|---|---|---|---|
| 1 | Washington | $82,156 | 106.8 | $76,925 |
| 2 | Texas | $65,352 | 96.4 | $67,794 |
| 3 | Nevada | $69,515 | 98.2 | $70,789 |
| 4 | Alaska | $76,961 | 105.4 | $73,019 |
| 5 | Tennessee | $53,422 | 90.1 | $59,292 |
| 6 | Florida | $58,973 | 100.4 | $58,738 |
| 7 | Minnesota | $67,353 | 97.8 | $68,868 |
| 8 | Oregon | $76,558 | 101.2 | $75,650 |
| 9 | Idaho | $56,284 | 94.6 | $59,497 |
| 10 | Colorado | $62,637 | 104.2 | $60,113 |
| ... | ... | ... | ... | ... |
| 42 | California | $92,606 | 115.4 | $80,247 |
| 48 | Hawaii | $80,653 | 118.2 | $68,234 |
| 50 | Mississippi | $47,912 | 86.4 | $55,454 |
Sources: BEA Regional Price Parities (RPP) 2022; Tax Foundation; BLS OES.
California drops from #2 in take-home to the bottom third in purchasing power. Washington holds the #1 spot on both measures — high salary, no state tax, and moderate cost of living outside Seattle. Texas rises from #5 in take-home to #2 in purchasing power.
The Overtime Tax Trap
State income tax compounds when nurses work overtime, because OT pushes income into higher marginal brackets.
State Tax on $20,000 of Overtime (Nurse at $90K Base)
| State | Marginal State Tax Rate on OT | State Tax on $20K OT | After-Tax Value of OT |
|---|---|---|---|
| Texas | 0% | $0 | $12,400 (after fed + FICA) |
| Florida | 0% | $0 | $12,400 |
| California | 9.3% | $1,860 | $10,540 |
| New York | 6.85% | $1,370 | $11,030 |
| Oregon | 9.0% | $1,800 | $10,600 |
| Minnesota | 7.85% | $1,570 | $10,830 |
| New Jersey | 6.37% | $1,274 | $11,126 |
| Hawaii | 8.25% | $1,650 | $10,750 |
A nurse in California keeps $10,540 of $20,000 in overtime. A nurse in Texas keeps $12,400 — $1,860 more. Over a year of moderate OT, the state tax difference on overtime alone is $1,200-$1,900.
Travel Nurse Tax Implications
| Tax Home State | Impact on Travel Nurse Stipends |
|---|---|
| No income tax state (TX, FL, NV, WA, TN) | Full stipend advantage — no state tax on taxable portion |
| High income tax state (CA, NY, OR) | May owe state tax on all travel income if maintaining state residency |
| "Tax home" in no-tax state | Maximum tax efficiency — but must maintain true tax home |
| Working in a state with reciprocal agreement | Only pay home state tax |
| Working in a state without reciprocity | May owe taxes to BOTH states (with credit) |
States With No Reciprocity (You Pay Both States)
If you live in a no-tax state and travel to California, you owe California tax on income earned there. Major non-reciprocal states that tax travel nurses:
| State | Tax Rate on Non-Resident Income | Impact on 13-Week Contract ($45K) |
|---|---|---|
| California | 9.3% on income over $68K | $2,200-$4,200 |
| New York | 6.85% | $1,800-$3,100 |
| Oregon | 9.0% | $2,100-$4,050 |
| Minnesota | 7.85% | $1,900-$3,530 |
| Connecticut | 6.99% | $1,800-$3,150 |
The Decision Framework
| Priority | Best States |
|---|---|
| Maximum take-home pay | Washington, Alaska, Nevada |
| Maximum purchasing power | Washington, Texas, Nevada, Minnesota |
| No state tax + strong nursing market | Texas, Florida, Washington, Tennessee |
| High salary even after state tax | Washington, California, Oregon |
| Travel nurse tax home | Texas, Florida, Nevada, Tennessee, South Dakota |
| Best state tax + pension combination | Texas (no tax) + federal employment (FERS pension) |
Sources: BLS Occupational Employment and Wage Statistics (May 2023, SOC 29-1141, all states); Tax Foundation 2024 State Individual Income Tax Rates and Brackets; IRS 2024 Federal Income Tax Brackets; BEA (Bureau of Economic Analysis) Regional Price Parities 2022; state revenue department tax calculators (CA FTB, NY DTF, OR DOR, MN DOR, NJ Division of Taxation, HI DoTax); IRS Publication 463 (travel, gift, and car expense rules); state non-resident income tax requirements (individual state statutes); FICA rate schedule 2024 (Social Security 6.2% + Medicare 1.45%).