When you think about places to live and work as a nurse, Chicago and Austin often come up in conversation. One has a high state income tax, the other has none. But what does the math actually look like?
Texas famously has no state income tax. Because of this, recruiters love to pitch cities like Austin as a goldmine where you get to keep everything you make. On the flip side, Illinois has a state income tax, making Chicago look less appealing on paper to a lot of travelers and staff nurses alike.
But if you move to Austin expecting to suddenly be swimming in extra cash, you’re going to be in for a surprise. If you think you’ll make more money purely because of the tax laws, you won’t. Let’s break down the real numbers.
The Breakdown: Taxes & Housing
In Chicago, the base pay for nurses is typically higher. Plus, their strong union presence means benefits and retirement packages tend to be generous, especially pension contributions at the bigger hospital systems. Yes, you are paying state income taxes, and yes, rent in the city isn’t exactly cheap.
Then you look at Austin. No state income tax sounds amazing. But the base pay for nurses in Central Texas is noticeably lower than the national average for a city of its size. Add to that the fact that Austin’s housing market has absolutely exploded in recent years. What you save by not paying state taxes, you are immediately handing over to your landlord or paying out in exorbitant property taxes.
Why It’s Only an $8/Month Difference
When you run the numbers for a standard registered nurse, factoring in the average base pay, state taxes, and the median cost of rent for a one-bedroom apartment in both cities, the difference in true take-home pay is shocking.
After adjusting for the cost of living and the realities of the local nursing market, the gap between the two cities comes out to a difference of just $8 a month.
This is exactly why you have to look past the “no state income tax” pitch. What you save in taxes in one state, you might easily lose to higher rent, lower base pay, or a higher overall cost of living.
Always run the numbers on your complete take-home pay minus your biggest expenses before signing a contract or making a move.
What This Means For Your Next Move
Inside Map My Pay, we’ve created a “nurse-only” community where transparency is the priority. We believe nurses deserve to see exactly what they are going to take home after all the bills are paid, without having to rely on guesswork or recruiter promises.
Got thoughts? Leave a comment below. And if you know a nurse who needs to see this, share it with them.
— Jason
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