Feb 17, 2020

Chart of the Week: How does monthly take-home pay vary in major U.S. cities?

Hat tip to Jessica for finding this chart at Howmuch.net

Methodology: Take-home pay calculated after deductions for federal and state income taxes and Social Security/Medicare taxes. 

Questions:

  • Since federal taxes are consistent across all of these cities, the difference in take-home pay is driven by differences in state income tax rates. What is the difference between the cities with the highest take-home pay and the cities with the lowest take-home pay (in dollars)? 
  • A $100,000 salary means that an individual's gross pay will be about $8,333 per month. How much will be deducted from the gross pay in your state to get the take-home pay you see in the map? 
  • Would you ever make a decision to live in a certain state because of their income tax rates? If not now, would there be a time in your life where this might matter more? 

------------------------

Thanks to NGPF super intern Ansh for compiling the last 20+ Charts of the Week in this document. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

author image More by Tim right solid arrow
Mail Icon

Subscribe to the blog

Join the more than 12,000 teachers who get the NGPF daily blog delivered to their inbox: