Total tax burden is the all-in tax picture, not a single line item.
Components
- Federal income tax
- Payroll taxes (FICA)
- State income tax
- Property tax (direct or embedded in rent)
- Sales and local taxes
Why It Beats Single-Tax Comparisons
A low-income-tax state may still impose high property or sales taxes. Net household outcome depends on the combined stack.
Relocation Model
Use expected spending patterns and housing path (rent vs buy) to estimate true annual burden. Different households experience the same city differently.
Decision Rule
Compare after-tax disposable income, not just gross salary and headline tax rates.