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Oh man, you grossly underestimate what we pay for taxes in CA. You forgot FICA (4.4% effective) and State tax (8.28% effective) for a total tax burden of $114,5
by Domenic_S 8y ago
Oh man, you grossly underestimate what we pay for taxes in CA. You forgot FICA (4.4% effective) and State tax (8.28% effective) for a total tax burden of $114,536. That leaves $185k of cash to spend or save, $89k after rent, $77k after a meager 4% 401k contribution.
Everything is more expensive. Insurance is more expensive. Gas is more expensive. Movies, ubers, doctors, groceries, sales tax, you name it.
While that leftover $77k isn't exactly hand-to-mouth poor by any stretch, compare it to some other state -- what is a fairly decent middle-class family wage in the Valley is a truly bonkers amount of money almost anywhere else in the US (or world, probably)
- ryandrake 8y agoIt is very expensive but still not that bad. I live in Silicon Valley too and I’ll say that $300k is a huge salary here. If I made that I could live extremely well in all but the most expensive Bay Area communities. Not private jet rich but far above a middle class lifestyle. If someone’s struggling (EDIT: just comfortable) with $300k I don’t know what to tell ya.
- vonseel 8y agoVery good point on other taxes. In Texas we don't have state income tax, so I forgot about those, but we do have property taxes and sales tax... I haven't been to a movie in at least 4 years, so I don't really add things like that into my budgeting. Everything else.. sure, it's more expensive, but some of it is only 30-50% more expensive, and $300k is easily double the salary one would receive in most other states.