Texas vs. Arizona
On a $75,000 salary, you keep about $1,473 more a year in Texas. Prices are 4% higher in Arizona, so after adjusting for cost of living Texas comes out ahead.
Last verified November 2, 2026.
| Texas | Arizona | |
|---|---|---|
| State income tax | Does not tax wages, so there is no state income tax withheld from paychecks. | Has a flat income tax of 2.5% on taxable income. |
| Minimum wage | $7.25 | $15.15 |
| Price level (U.S. = 100) | 97.1 | 100.7 |
| Employer cost on a $50,000 hire | $4,500 | $4,377 |
| SUTA wage base | $9,000 | $8,000 |
Take-home pay at the same salary
| Salary | Texas take-home | Arizona take-home | Difference |
|---|---|---|---|
| $50,000 | $42,355 | $41,508 | $848 more in Texas |
| $75,000 | $61,593 | $60,120 | $1,473 more in Texas |
| $100,000 | $79,180 | $77,083 | $2,098 more in Texas |
| $150,000 | $113,791 | $110,444 | $3,348 more in Texas |
Single filer, standard deduction, tax year 2026. Excludes local income taxes.
Adjusted for cost of living
Using BEA regional price parities, $61,593 in Texas buys what $63,460 buys in an average-priced state, and $60,120 in Arizona buys what $59,716 does. To keep the same buying power moving from Texas to Arizona, a $75,000 salary would need to be about $77,797 before the tax difference.
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Frequently asked questions
- Is Texas or Arizona better for take-home pay?
- On $75,000, you keep about $1,473 more a year in Texas. Adjusted for prices, Texas comes out ahead by $3,744.
- Which state is cheaper for employers, Texas or Arizona?
- Employer taxes and insurance on a $50,000 hire are about $4,500 in Texas and $4,377 in Arizona.