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Averages are skewed. Still. To meet the requirement of many landlords to earn in excess of 3x rent, one would have to earn 15k a month after tax, or 180k a yea

Averages are skewed. Still. To meet the requirement of many landlords to earn in excess of 3x rent, one would have to earn 15k a month after tax, or 180k a year after tax. To earn 180k after tax in NY, you need to earn 300k pre tax. Your Income Taxes Breakdown Tax / Marginal Tax Rate / Effective Tax Rate / 2021 Taxes* / Federal 35.00% / 25.05% / $75,152 FICA / 2.35% / 4.70% / $14,104 State / 6.85% / 6.12% / $18,356 Local./ 3.88% / 3.73% / $11,193 Total Income Taxes / 39.60% / $118,804 Income After Taxes: $181,196 Retirement Contributions: $0 Take-Home Pay: $181,196 In investment banking, only VPs, SVPs, and directors start earning salaries of that magnitude: https://mergersandinquisitions.com/investment-banker-salary/ https://mergersandinquisitions.com/investment-banker-salary/ The average annual household income in Manhattan is $143,680, while the median household income sits at $117,926 per year. Residents aged 25 to 44 earn $144,670, while those between 45 and 64 years old have a median wage of $126,981. In contrast, people younger than 25 and those older than 65 earn less, at $57,813 and $47,547, respectively: https://www.point2homes.com/US/Neighborhood/NY/Manhattan-Demographics.html https://www.point2homes.com/US/Neighborhood/NY/Manhattan-Dem...

sokoloff 4y ago
These ratios are generally applied against gross (pre-tax) income.
- Victerius 4y ago
  That's the point? That's what I did using a calculator: https://smartasset.com/taxes/new-york-tax-calculator https://smartasset.com/taxes/new-york-tax-calculator
  - sokoloff 4y ago
    No. The ratio is pre-tax, not post-tax. > To meet the requirement of many landlords to earn in excess of 3x rent, one would have to earn 15k a month after tax, or 180k a year after tax. To earn 180k after tax in NY, you need to earn 300k pre tax. The ratio is on pre-tax income. To pay $60K/yr in rent, you need 3x that in pre-tax income, or $180K/yr pre-tax. To earn $180K/yr pre-tax, you have to earn $180K/yr pre-tax, no calculator needed.
    - Victerius 4y ago
      Ah yes. My mistake.
deleted 4y ago
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moonchrome 4y ago
>To meet the requirement of many landlords to earn in excess of 3x rent, one would have to earn 15k a month after tax, or 180k a year after tax. To earn 180k after tax in NY, you need to earn 300k pre tax. But that's household income not individual ?
jraby3 4y ago
Those are mostly corporate landlords in large buildings. Many smaller landlords don’t have such stringent requirements. Source: rented and invested in NYC apartments for more than 20 years.
- deleted 4y ago
  [deleted]
ctvo 4y ago
NYC uses much lax requirements: Your yearly gross income (before any taxes, in aggregate, including other sources) must be greater than 40x the rent price. The example of 5k would require a gross income of 200k or higher, making it much easier to qualify for than what you're assuming. Is it a good idea to spend 5k on rent when you earn 200k is a different question.
throwawayiionqz 4y ago
Landlords in NYC require pre-tax income of 40 times the monthly rent. For $5k monthly rent you need $200,000 pre-tax income.
rpadovani 4y ago
> Income After Taxes: $181,196 What? I thought that in U.S. taxes would be so much lower than in EU! In Bavaria, Germany, the income after taxes on €300,000 euros is €168.131,35 in the highest contribution bracket, and €178.251,07 in the lowest!
- runako 4y ago
  This is a common misconception also held by many Americans! The total tax burden paid by many Americans is very comparable to other industrialized nations. (Yes, NYC has a higher burden than most places, but the cities where many Americans live tend to have higher tax burdens in general, regardless of the politics of the leadership.) The major difference is that instead of comprehensive social services, our taxes buy us the world's most expensive military.
- Nimitz14 4y ago
  In Germany you hit the higher tax brackets much quicker. I just input the numbers into a calculator and at 150k in NYC you pay 34.5 and in Bayern 43.4% taxes.
sempron64 4y ago
This is a little excessive, you are not taking into account the standard deduction, and taxing the entire income at the highest bracket. Edit: I take that back, I see you used an effective tax rate including the standard deduction for a single filer instead of the marginal rate. This would be slightly better if you’re married filing jointly or have other deductions.

sokoloff 4y ago

These ratios are generally applied against gross (pre-tax) income.

Victerius 4y ago
That's the point? That's what I did using a calculator: https://smartasset.com/taxes/new-york-tax-calculator https://smartasset.com/taxes/new-york-tax-calculator
- sokoloff 4y ago
  No. The ratio is pre-tax, not post-tax. > To meet the requirement of many landlords to earn in excess of 3x rent, one would have to earn 15k a month after tax, or 180k a year after tax. To earn 180k after tax in NY, you need to earn 300k pre tax. The ratio is on pre-tax income. To pay $60K/yr in rent, you need 3x that in pre-tax income, or $180K/yr pre-tax. To earn $180K/yr pre-tax, you have to earn $180K/yr pre-tax, no calculator needed.
  - Victerius 4y ago
    Ah yes. My mistake.

deleted 4y ago

[deleted]

moonchrome 4y ago

>To meet the requirement of many landlords to earn in excess of 3x rent, one would have to earn 15k a month after tax, or 180k a year after tax. To earn 180k after tax in NY, you need to earn 300k pre tax. But that's household income not individual ?

jraby3 4y ago

Those are mostly corporate landlords in large buildings. Many smaller landlords don’t have such stringent requirements. Source: rented and invested in NYC apartments for more than 20 years.

deleted 4y ago
[deleted]

ctvo 4y ago

NYC uses much lax requirements: Your yearly gross income (before any taxes, in aggregate, including other sources) must be greater than 40x the rent price. The example of 5k would require a gross income of 200k or higher, making it much easier to qualify for than what you're assuming. Is it a good idea to spend 5k on rent when you earn 200k is a different question.

throwawayiionqz 4y ago

Landlords in NYC require pre-tax income of 40 times the monthly rent. For $5k monthly rent you need $200,000 pre-tax income.

rpadovani 4y ago

> Income After Taxes: $181,196 What? I thought that in U.S. taxes would be so much lower than in EU! In Bavaria, Germany, the income after taxes on €300,000 euros is €168.131,35 in the highest contribution bracket, and €178.251,07 in the lowest!

runako 4y ago
This is a common misconception also held by many Americans! The total tax burden paid by many Americans is very comparable to other industrialized nations. (Yes, NYC has a higher burden than most places, but the cities where many Americans live tend to have higher tax burdens in general, regardless of the politics of the leadership.) The major difference is that instead of comprehensive social services, our taxes buy us the world's most expensive military.
Nimitz14 4y ago
In Germany you hit the higher tax brackets much quicker. I just input the numbers into a calculator and at 150k in NYC you pay 34.5 and in Bayern 43.4% taxes.

sempron64 4y ago

This is a little excessive, you are not taking into account the standard deduction, and taxing the entire income at the highest bracket. Edit: I take that back, I see you used an effective tax rate including the standard deduction for a single filer instead of the marginal rate. This would be slightly better if you’re married filing jointly or have other deductions.