Been looking at some tax data and honestly, the gap between what Americans earn and what they actually take home is wild depending on where you live. Like, Benjamin Franklin wasn't kidding about death and taxes being certain - but the amount you lose to taxes? That varies drastically by state.



I pulled together some numbers from recent analysis on average take home pay in the US and the differences are pretty eye-opening. Someone making the median household income in Maryland could be taking home over $101k after all taxes, while someone with a similar bracket in Mississippi might only see around $64k. That's a difference of like 40% just based on location.

The northeastern states tend to hit harder on your paycheck. Connecticut's median household income sits around $139k, but after federal, state, and local taxes, you're looking at roughly $94k take-home. Compare that to Alaska - median around $119k but you keep closer to $94k because of their tax structure. Meanwhile, states like Texas and Florida with no state income tax obviously keep more of their average take home pay in those regions.

What's interesting is that the highest median incomes don't always mean the best take-home situations. Massachusetts has one of the highest median incomes at $147k, but the actual take-home after taxes comes to about $99k. You're losing a significant chunk to taxes even at high income levels.

The tax burden calculation includes federal income tax, state income tax, FICA, local sales tax, and property taxes - basically everything. So if you're thinking about relocating or just curious how much your state's taxes actually cost you, this stuff matters way more than people realize when comparing average take home pay across different parts of the US.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin