When we think about taxes, it’s typically federal taxes that come to mind. And for good reasons: no matter what state you live in, federal taxes are unavoidable. But where you live still matters. In fact, your state of residence can play a meaningful role in how much of your wealth you ultimately keep over time.

Profit margins have been rising sharply, but the gains have not been evenly spread across the market. Much of the strength has come from technology, especially semiconductor companies. Strong demand tied to artificial intelligence, cloud computing, and data centers has helped these businesses maintain strong pricing power and higher margins.