Side-by-side tax comparison between Kentucky (4% top rate) and Texas (no income tax).
| Salary | Kentucky | Texas | Difference | Winner |
|---|---|---|---|---|
| $50K | $40,048 | $42,298 | +$2,250 | Texas |
| $75K | $57,928 | $61,303 | +$3,375 | Texas |
| $100K | $74,390 | $78,890 | +$4,500 | Texas |
| $150K | $106,696 | $113,446 | +$6,750 | Texas |
| $200K | $140,103 | $149,103 | +$9,000 | Texas |
Texas offers higher take-home pay at every salary level. With no state income tax, Texas gives you a significant advantage over Kentucky's 4% top rate. At $100K, the difference is $4,500/year — that’s $375/month.
However, cost of living matters. Kentucky has a cost index of 90 while Texas is at 93. With similar costs of living, the tax difference is the main factor.