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Richard Rider

How much is left after total income taxes are paid at $50K and $200K of income?

Here’s a helpful yet limited survey — comparing the states’ income tax paid on earned income — combined with the federal income tax.  The comparison uses $50K and $200K salaries.


CA has a highly progressive state income tax, so we don’t rank TOO badly at $50K. At $200K, CA is a close second to Oregon — the worst state.

Indeed, at $200K, less than $100 tax separates these worst two states — they are essentially tied.  CA moves to #1 above $200K (not included in the article), and the difference between the two states  becomes more pronounced, the higher one’s income is above that $200K benchmark.

This comparison counts only earned income — capital gains and dividends are treated differently by many states (NOT California).  And it understandably doesn’t include other taxes — notably property taxes and sales taxes.  That would constitute a MAJOR project with lots of logistical difficulties.

BTW, Oregon has no sales tax.  CA has the nation’s 9th highest average sales tax as of January 2019 — with a TON of CA local sales tax increases set to take effect this spring, and a bunch more such local increases going to the ballot across the state shortly.

In this article there are two excellent maps of the tax rates of each state — one map at $50,000 income, and one map at $200,000. Look ’em over.  If you make a six-figure income in California, the Golden State starts to look less and less attractive.

https://www.dailymail.co.uk/news/article-6696735/What-REALLY-earn-taxes-state-salary-50-000-vs-200-000-Oregon-worst.html

EXCERPT:

People making $200,000 a year are in the top 10 percent of U.S. earners, while those earning $50,000 are more on par with the average American, given the median U.S. salary of $56,516.

This map illustrates the post-tax take home salary for people earning $50,000 in each state. The darker shade of green illustrates a lower income tax, while lighter colors represent states with higher income tax rates 

Wherever you fall on the spectrum, the reality of take home pay will vary depending on the state in which you live.

California has a progressive tax rate ranging from 1 – 13.3 percent depending on how much you earn – making it one of the highest taxed states in the nation.Similarly, Hawaii has a tax rate ranging from 1.4-11 percent, while Oregon’s falls between 5-9.9 percent and Maryland’s ranges from 2-5.75 percent.

Ultimately, Oregon has the lowest take home salary in the nation for earners in both categories: a $50,000 salary adds up to $37,345 after taxes, while a $200,000 salary amounts to $127,720 in take home pay.

The state offsets its high income taxes by being one of just five states that don’t have a sales tax.

This map illustrates the post-tax take home salary for people earning $200,000 in each state. The darker shade of green illustrates a lower income tax, while lighter colors represent states with higher income tax rates

Meanwhile, Californians take home less as their salaries grow; a $50,000 earner get $38,778 after taxes, only slightly less than the national average. But people making $200,000 would have a take home of $127,819 – second-lowest in the nation for that level of earnings.