The short version
New York's typical two-bedroom rent is $2,402 a month on the HUD state average, and a married couple on the U.S. median household income would pay 14.6% of it in state and local taxes. Every state on the list below has lower rent, a lower total tax share and a lower top income-tax rate.
The rent drop is largest in South Carolina and North Carolina, at $12,132 and $11,532 a year for a two-bedroom. It is smallest in New Jersey, at $1,608 a year. Pay moves too: median household income is lower in every one of these states except New Jersey.
New York against six destinations
| State | Typical two-bedroom rent | Yearly rent difference vs New York | Top income-tax rate | All state and local taxes, share of income | Median household income |
|---|---|---|---|---|---|
| New York | $2,402 | Baseline | 10.9% | 14.6% | $85,820 |
| South Carolina | $1,391 | $12,132 lower | 5.21% | 5% | $72,350 |
| North Carolina | $1,441 | $11,532 lower | 3.99% | 6.5% | $73,958 |
| Texas | $1,488 | $10,968 lower | None | 6.2% | $79,721 |
| Pennsylvania | $1,528 | $10,488 lower | 3.07% | 9% | $77,545 |
| Florida | $1,962 | $5,280 lower | None | 4.7% | $77,735 |
| New Jersey | $2,268 | $1,608 lower | 10.75% | 14.3% | $104,294 |
Rent: HUD Fair Market Rents, population-weighted state averages. Tax share: what a married couple on the U.S. median household income would pay in state and local income, property and sales tax (Locustep estimate). Top rate: highest state income-tax bracket. Income: Census median household income. Sorted by the size of the yearly rent drop.
Florida: no income tax, but rent is still tight
Florida is the move most New Yorkers picture first, and on tax it delivers: no tax on wages and a total tax share of 4.7%, against 14.6% in New York. Rent is the catch. A two-bedroom averages $1,962, well above the Carolinas, Pennsylvania and Texas.
Set against what households earn there, rent in Florida is the 3rd highest share of income in the country. New York is the highest. So a renter moving south on a Florida salary may find the monthly squeeze feels familiar, even with the tax saving. See the full list in the rent versus income ranking.
The Carolinas: the biggest rent drop
South Carolina and North Carolina have the lowest two-bedroom rents on this list, $1,391 and $1,441. Both tax wages, at top rates of 5.21% and 3.99%, but their total tax shares, 5% and 6.5%, are far below New York's. Property tax is low too: 0.45% in South Carolina and 0.61% in North Carolina, against 1.45% in New York.
The trade is pay. Median household income is $72,350 in South Carolina and $73,958 in North Carolina, against $85,820 in New York. If your job moves with you, that gap matters less. Compare the two directly on North Carolina vs South Carolina.
Pennsylvania, Texas and New Jersey
- Pennsylvania borders New York and has the lowest top income-tax rate here among states that tax wages, 3.07%. Rent is $1,528 for a two-bedroom. Its property-tax rate, 1.16%, is lower than New York's 1.45% but higher than every other destination here except Texas and New Jersey.
- Texas has no wage tax and a total tax share of 6.2%, but its property-tax rate, 1.31%, is not far below New York's 1.45% and is higher than every other destination here except New Jersey. That line matters if you plan to buy.
- New Jersey is the only state here with higher median household income than New York, $104,294. Rent is only a little lower, and its property-tax rate, 1.89%, is the highest on this list.
How to use this when you are choosing
- If you rent and your pay stays the same, rent is usually the biggest change. Start with the yearly rent difference column.
- If you will look for work locally, put the median income column next to rent. A lower rent bill on a lower salary can leave you about where you started.
- If you plan to buy, weigh the property-tax rate against the home prices you expect to pay.
- These are state averages. City and county figures can be very different, and your own pay and household decide the real answer. The personal Net-Impact Report in Premium, a one-time $39 purchase, runs your own numbers.
This guide gives information to help you decide. It is not tax, financial or legal advice. Tax law changes, and your own situation can differ from a state average.