Sales tax in the US varies by state and by the product. Some states don't tax things like food and clothing (IE: life necessities), but then other states tax everything. Even state taxes on income can vary widely. Like here in Texas there is no state income tax, but in Maryland there is state income tax, county income tax (44% of state tax), and in some cases city/local taxes. In TX the property taxes are higher to help offset the income tax. Places with income tax typically have lower property taxes, but I can guarantee I don't pay anywhere near income tax rates on my property in TX even though it is high. So a lower wage goes further in Texas due to the lower taxes and lower cost of living. Well except in the cites, the cost of living is pretty high in the cites comparatively.