Which States Are ‘Maxing Out’ on the Rate of Take-Home Pay?
Ever since the day you received your first paycheck you've come to know a very harsh economic reality: what you get 'paid' and what you actually get to keep are two very different numbers.
And depending on where you live and work, that discrepancy might be even bigger - close to $20,000 a year.
According to GOBankingRates, data from both the Tax Foundation and SmartAsset reveal what most of us already knew, the states with the lowest tax burdens are the ones where residents can put more of their paychecks in their pockets.
And that includes South Dakota.
Using a salary of $200,000, which is among the top 10 percent of earners in America, the nine places where residents pay no state income taxes were head and shoulders above the rest when it came to take-home pay.
This means people in the Mount Rushmore State, along with Florida, Nevada, New Hampshire, Texas, Tennessee, Washington, and Wyoming would all bring home a hefty $145,962, or just under 73 percent of their paycheck.
Residents of one other state with no state income taxes, Alaska, would bring home slightly less - $145,764.
So where are people forking over money at a much higher rate?
In three states, you'd have less than $130k to show from that original $200k. In California, that means you'd bring home $18,143 less each year.
STATES WITH LOWEST TAKE-HOME PAY (Based on $200, 000 salary)
- California - $127,819
- Oregon - $127,720
- Maryland - $129,952
- Hawaii - $130,553
- Minnesota - $131,223