I had a vague understanding that different states had different levels of taxes (wow Florida with that no-income tax woot woot!), but never went deeper. The rise of remote work in the last couple years brought this question into sharper focus:
Given a remote worker allowed to live in any state, with salary not adjusted, how does their tax burden vary?
I found a handy online calculator for the base data, ran it for a variety of salaries, then did some simple calcs on the aggregate across states & salary buckets.
Buckets I chose:
[ℹ️] If you want to dive deeper into the data for your exact salary, I highly recommend checking out that calculator, because they also provide extra information, like how much a marginal salary increase will net you. Example:
For instance, an increase of $100 in your salary will be taxed $25.15, hence, your net pay will only increase by $74.85.src .
This table goes through and compares the best & worst amounts of take-home pay for each of the salary buckets. My personal takeaways:
$75kbase salary in Hawaii and then moved to Florida, I’d have an extra
$5,659.00to spend on plastic trinkets from Amazon. Wild!
$3,335.00. A couple grand ain’t nothing, but that’s in best case scenario of highest taxes to average - which won’t be a lot of people. I haven’t done the calculations for averaging the difference between every combination of states, but it would likely be
|salary bucket||best||worst||best_pct||worst_pct||best_state||worst_state||diff $||diff_pct_of_base_pay||median $||median diff $||mean $|
I was then curious about how states vary in ranking as income increases. My personal takeaways:
28), New Jersey (
25), and California (
22) had the largest change in ranking across the 8 salary buckets. Seems like those are states that are pretty decent to be in at “common” salary bands, but if you’re crazy rich the taxes are giving you a hard time.
⚠️ It was mentioned to me that Washington has some FMLA Tax that doesn’t technically count as state tax, but which should end up demoting it on this list. I couldn’t find any specific % numbers to include, but if you have more info I’d appreciate if you reached out!
5places - which to me feels like a fairly consistent set of rankings. I have no stats background, so just nod along if that’s wildly innacurate 😅.
The simple steps I would follow if I got to re-do my college CS program.
You don’t have to be a software developer writing code to break into working at a tech company.
Leveraging multiple strengths in concert to make the whole better.