Why state planning matters
State taxes can materially affect high-income households, business owners, real estate investors, equity-compensation earners, and families considering residency changes.
State tax rules vary widely by location. High-income earners often need planning around SALT limitations, pass-through entity tax elections, residency, equity compensation, business income, real estate, capital gains, and income timing.
These guides are educational starting points for taxpayers who want to understand where state-level planning may fit alongside federal tax strategy, investment planning, business planning, and residency decisions.
Choose a state
Select a state to explore its tax strategy guides.
California
13.3% top rateCalifornia planning centers on the 13.3% top rate, PTE elections, cost segregation, real estate strategies, QOZ investments, and aggressive residency audit risk.
New York
10.9% top rateNew York planning combines a 9.65% state rate, NYC city tax up to 3.876%, PTET elections, real estate strategies, and aggressive statutory residency audits.
New Jersey
10.75% top rateNew Jersey planning combines a 10.75% top rate, very high property taxes, BAIT elections, cost segregation, property tax audits, and S-corp structuring.
Massachusetts
9% top rateMassachusetts planning centers on the 4% millionaire surtax above $1,107,750, managed with installment sales, charitable bunching, PTE elections, and real estate strategies.
Illinois
4.95% top rateIllinois planning leverages the 4.95% flat tax with cost segregation, QOZ investments, QSBS Section 1202 exclusions, retirement plans, and property tax management.
Texas
No income taxTexas has no income tax — ideal for liquidity events. Planning centers on residency establishment, property tax appeals, franchise tax, and federal real estate strategy.
Florida
No income taxFlorida has no income or estate tax plus strong asset protection. Planning centers on clean residency relocation, timing liquidity events, and estate strategy.
Washington
No income taxWashington has no income tax but a 7% capital gains tax above ~$270K. Planning centers on asset location, the real estate exemption, threshold timing, and charitable giving.
Colorado
4.4% top rateColorado’s 4.40% flat tax starts from federal taxable income, so federal deductions flow through automatically. Planning uses PTE elections, real estate, and QOZ strategies.
Georgia
5.39% top rateGeorgia’s 5.39% flat tax (declining) pairs with the PTE election, transferable film credits, real estate strategies, and a generous retirement income exclusion.
Connecticut
6.99% top rateConnecticut’s 6.99% top rate plus benefit recapture requires PET elections, New York commuter sourcing management, property tax appeals, and real estate strategies.
