3 ms·Most recipients don't pay tax on that disability income, so the net income in comparison to working is higher.by gav 8y agoMost recipients don't pay tax on that disability income, so the net income in comparison to working is higher.ummonk 8y agoAt minimum wage, the effective tax rate would be quite low.learc83 8y agoDepending on how regressive the state taxes are and considering that the standard deduction doesn't apply to FICA, effective tax on minimum wage can be higher than you'd think.