We’ve all been there.
You get a new job or a big promotion. Then, when the first paycheck arrives, you’re disappointed by what’s deposited.
Statista data show that just over 10% of U.S. households earned $200,000 or more in 2019.
If you’re one of them, GoBankingRates recently determined how much you’ll actually take home, using data from the Tax Foundation to create a state-by-state breakdown of take-home pay.
“Some states take out bigger chunks than others, so it’s important to know exactly how much take-home pay you can expect in every state if you’re grossing $200,000,” the site said.
Georgians earning $200,000 annually will take home approximately $134,452. That’s just over 67% of their salary.
“High earners in Georgia don’t get to keep as much of their pay as the average American due to the rapidly graduated state tax schedule,” GoBankingRates noted. “The top state income tax rate of 6% kicks in after just $7,000 in earnings for single filers, or $10,000 for joint filers.”
Still, it’s better than in some states.
Oregon is the state where residents take home the least. Residents of the Beaver State take home just $127,720, which is nearly $9,000 below the national average. California also has a low take-home pay rate, due in part to having the nation’s highest income tax rate. Californians take home $127,819. That’s just under 64% of their salary.
States with the highest take-home pay in the country include Nevada, New Hampshire, South Dakota and Tennessee. Nevada and Tennessee don’t have a state income tax. New Hampshire charges a 5% tax rate on interest and dividend income, but nothing on earned income. South Dakota, meanwhile, doesn’t have separate taxes on dividends or interest.
About the Author
