[EdJiang]

I believe you can deduct state from federal tax, which would save ~2.5% in marginal tax. In addition, social security phases out at ~120k so that's another 7.5% savings. So the difference is almost a wash if I understand correctly?

[seattlefreeze]

Don't forget about AMT. That usually throws a wrench in things.

https://en.wikipedia.org/wiki/Alternative_minimum_tax

[valleyer]

Correct. Specifically, it disallows deduction of state/local taxes from your federal taxable income.