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My math says $100,000 - $41,000 = $59,000. Not $70,000. > not accounting for taxes That would be a large mistake. California has huge income taxes, Texas none
by skookumchuck 8y ago
My math says $100,000 - $41,000 = $59,000. Not $70,000.
> not accounting for taxes
That would be a large mistake. California has huge income taxes, Texas none. It's not just state taxes, a doubling of your income puts all that additional income in a much higher federal tax bracket.
I would expect renting a parking spot in SF to cost a pretty penny, too.
- akhilcacharya 8y agoWhereas, Seattle has zero income taxes, cheaper housing, and equivalent salary
- User23 8y agoYeah, but you have to live someplace that's so depressing that 90% of the population is overweight and self-medicates with some combination of coffee, alcohol, marijuana, and adderall.
- toasterlovin 8y agoI know it's hard to believe, but some people actually find the weather great in the Pacific Northwest.
- User23 8y agoYeah Vancouver island is beautiful! Oh wait I misread that as some people find great weather in the pacific northwest.
- akhilcacharya 8y agoI agree. I lived there during the “worst” season - Sept to Dec - and I loved it!
- skookumchuck 8y ago> Seattle has zero income taxes I wouldn't count on it. Seattle just passed a city income tax, despite it being against the state Constitution, trying to gerrymander it around the wording of the Constitution. At the state level, the Democrats in the last election got control of both houses of the legislature, as well as the governorship. High on their agenda is finding a way to tax income.
- User23 8y agoThose California income taxes also apply to capital gains.
- charmides 8y agoYour math is worth little unless you plug the right values into the equation. He said his salary would be twice as high in SF, so for a 100k salary in Houston, we're talking about 200k - 41k vs 100k - 17k, which is roughly a 70k difference (actually closer to 80k, but I wanted to make a conservative guess).
- skookumchuck 8y agoyou're right
- chrismcb 8y agoMy may says $100,000 - $41,000 + $17,000 = $76,000 The claim was an SD apartment is 41k while an equivalent Texan apartment was 17k. Presumably you are already paying the 17k.
- ppseafield 8y agoThat's not how tax brackets work. > Because the U.S. tax system is a progressive one, as income rises, increasingly higher taxes are imposed. But those in the highest bracket don’t pay the highest rate on all their income. For example, for 2017 taxes, single individuals pay 39.6% only on income above $418,401 (above $470,001 for married filing jointly); the lower tax rates are levied at the income brackets below that amount, as shown in the table below. https://www.bankrate.com/finance/taxes/tax-brackets.aspx https://www.bankrate.com/finance/taxes/tax-brackets.aspx
- refurb 8y agoThe OP is correct. The addition income you’d earn in SF is taxed at the higher marginal rate. What he is saying is that if you make $100k in Houston and $250k in SF, the extra $150k is tax entirely at the higher rate.
- dragonwriter 8y ago> What he is saying is that if you make $100k in Houston and $250k in SF, the extra $150k is tax entirely at the higher rate. The part above $128K is actually taxed at a lower rate; crossing the Social Security maximum taxed earnings level (and thus losing 6.2% in marginal tax on income) more than makes up for the 5% higher marginal income tax rate.
- skookumchuck 8y agoFrom the linked table, 2018 marginal tax rates are for single: 24% $82,501 to $157,500 32% $157,501 to $200,000 35% $200,001 to $500,000 I.e. 8% to 13%, not 5%.
- ppseafield 8y agoYou're right. I missed the word additional when I read it.