Where to Live in the US on a Green Card or E-2: How the State Changes the Numbers, 2026

How does where you live change a green card holder's taxes?

Where you live changes a green card holder's state tax and nothing about the federal rule: US residents are taxed federally on worldwide income in every state, on progressive brackets from 10% to 37%, while a state may charge no income tax at all or a top rate of up to 13.3% among our ten destinations.

The IRS explains the worldwide principle for US residents plainly, and it surprises many families who are used to a different system. Moving to a state with no income tax does not remove your federal position on income from anywhere in the world. Federal bands are indexed each year, so please confirm the current ones with the IRS and a qualified US tax adviser. This article is general information, not tax advice, and it does not assess any individual's position.

So the useful question for an incoming family is rather narrower than "which state saves tax?". It is how the state you choose changes the numbers around a federal position that stays with you wherever you settle, and how those numbers sit beside housing, schools and the life you want. We have kept this article to facts and made no ranking, because the right state depends on your family, and the same state can suit one household and not another. You will find every state on our USA relocation pages.

What do green card holder state taxes look like at USD 500,000 and USD 1,000,000?

Green card holder state taxes for a family on wages of USD 500,000 run from USD 0 in Florida, Nevada, Tennessee, Texas and Washington to USD 36,740 in California, and at USD 1,000,000 from USD 0 to USD 87,401, on our 2026 computation of wages only, excluding local tax and refundable credits.

These household figures are 2026 figures computed by Mirabello from each state's official schedule, and they rest on a stated scope: state income tax on wages only, the standard deduction, no itemising, no local tax and no refundable credits, for a married couple filing jointly with one earner and two children aged 10 and 8. They are not a personal assessment. An investor family's income often includes dividends, capital gains or foreign income, which this computation does not cover, and local taxes, such as those in New York City, would come on top. Our methodology page explains how we compute them.

The table also shows why a top rate alone can mislead. New Jersey's top rate of 10.75% sits below New York's 10.9%, yet at wages of USD 1,000,000 our computed tax for this family is USD 72,209 in New Jersey and USD 67,264 in New York, because the whole schedule matters. North Carolina's top rate of 3.99% and Georgia's 4.99% produce USD 38,883 and USD 47,904 at the same income. Our article on state income tax by income level gives the computation across states and income levels.

One change is already legislated for high earners. Washington's zero stands for 2026, and Senate Bill 6346 adds a 9.9% tax on annual adjusted gross income above USD 1 million from 1 January 2028, according to the Washington Department of Revenue.

What do the states with no income tax charge a green card holder instead?

States with no income tax still charge a green card holder other taxes, including state sales tax of 6% in Florida, 6.25% in Texas, 6.5% in Washington, 6.85% in Nevada and 7% in Tennessee in 2026, along with property tax where the effective rate runs from 0.46% in Tennessee to 1.32% in Texas.

A family buying a home should look at both the rate and the likely value. Median home value in the 2025 survey runs from USD 318,100 in Texas to USD 605,600 in Washington among these states. Washington has its own points to check, including an estate tax, which our guide to state estate and inheritance taxes covers. Our article on states with no income tax goes through all of them.

Price levels matter here too. Tennessee reads 91.9 on the 2024 Regional Price Parities, where the US average is 100, and California reads 110.7, with the other eight in between. Our article on cost of living by state explains the measure and gives all the states. Rent, for those who plan to take time before buying, runs from USD 1,356 a month in Tennessee to USD 2,160 in California on the 2025 state medians.

How do schools compare for a green card family across these states?

Schools for a green card family look different depending on the measure: public spending per pupil in 2020-21 runs from USD 10,073 in Nevada to USD 26,097 in New York among these ten states, while mean grade 8 mathematics scores in 2024 run from 265 in Nevada to 282 in New Jersey.

The figures come from the National Center for Education Statistics and the National Assessment of Educational Progress. State averages say little about the school your child would attend, because districts within one state differ considerably, and many international families also consider private schools, which these figures do not cover. Please use the table to ask better questions, then look at the specific district.

Does the EB-5 green card route change which state you can live in?

The EB-5 green card route is a separate question from where you live: the published minimum investment is USD 800,000 for a targeted employment area or infrastructure investment and USD 1,050,000 otherwise, and the location of an investment and the location of your family's home need not be treated as one decision.

EB-5 is an immigrant route that leads to permanent residence, and the investment can be made directly or through a regional centre. We mention it here for education only. These amounts are due to be adjusted for inflation for petitions filed from 1 January 2027, and the new figures had not been published when we wrote this. Each case is assessed on its own merits by the US authorities, on the source of funds, the investment and the job creation requirements among other things, and only a qualified US immigration attorney working from your documents can tell you how the rules apply to you. Our EB-5 page explains the route, and the full EB-5 cost breakdown separates the investment from the fees and other costs. Waiting times vary and change, so please ask for the current position rather than rely on a general figure.

Once a green card is granted, the tax points in this article apply from the time you become a US tax resident, so the timing of your move, and of any large sale or distribution before it, is worth raising with a tax adviser well in advance.

Does an E-2 visa lead to a green card, and does the state still matter?

An E-2 visa gives no green card by itself, since it is a temporary, renewable visa for nationals of treaty countries, and the state still matters: the family figures above, such as USD 36,740 in California against USD 0 in Texas at wages of USD 500,000, depend on the state where you become resident.

Federal tax treatment on an E-2 depends on your individual facts, so please ask a tax adviser rather than assume either answer. An E-2 is also tied to a real and operating business that you develop and direct, which may well narrow the choice of state, because the business has to be where its customers and premises are. Each visa is assessed on its own merits, and our articles on the E-2 investment rules and the E-2 Treaty Investor visa page explain what the assessment looks at.

If you came to this question looking for a US programme of the type many countries offer, our article on whether the USA has one answers that directly. For residency routes in other countries, our residency by investment comparison sets them out, and the USA immigration overview places the US routes side by side.

How should a green card family choose a state?

A green card family should usually choose a state by starting with work, schools and family ties, then testing that shortlist against the numbers, including state income tax from USD 0 to USD 87,401 at wages of USD 1,000,000 on our stated scope, because a tax figure rarely outweighs the reasons you are moving.

A workable sequence looks like this. First, list what really fixes your location: a business, a job, a university, relatives or a community where your family will feel at home. Second, compare the two or three states left, on tax and on cost, using the state pages and, where they apply, our comparisons of California to Texas and New York to Florida. Third, check the less visible points: how the state decides tax residency, its estate or inheritance tax, and how your existing income from abroad will be treated. Readers from Germany, Switzerland or Austria will find the federal side set out in US taxes after moving.

If you would like a first orientation at any hour, you can ask Mira, by Mirabello, our AI guide, in your own language. When you would prefer to talk to a person, Mirabello's team is glad to go through your plans, and a free consultation carries no obligation. Mirabello is an IMC member with ACAMS-certified leadership. We coordinate a case with your US attorney and tax advisers, and we do not replace them.