We all aspire to earn more. However, we cannot take home the whole amount as expected. The credit goes to local, state, Medicare, income taxes, social security, maximum income, and FICA deductions. You may use the Paycheck Calculator or a study conducted by GOBankingRates to understand how much salary you need to take home 100k in every state. State taxes differ according to the state, not the payroll and federal income taxes. Let us know more detail about ‘Salary Needed Take Home 100K State’.
Salary Needed Take Home 100K State:
You will end up getting 62 to 63% of your pay home. To take home $100k, you must earn $8333 per month and around $278 per day. Some tax-friendly states are Wyoming, Washington, and Alaska. On the other hand, Maryland, California, and Hawaii require a higher cost of living.
Utah
You must earn $144,310 per year to take home $100k per year. The monthly payment should be $5,912 in Salt Lake City, Utah. You will end up getting 69.3% of your total salary in this state. Local taxes in Utah are 4%, and state sales tax is 4.85%. The state income tax rate is 4.95%. The taxpayers must also pay federal taxes. So, the tax system in this state is simple.
The Utah Median Household Income has increased over the years according to the US Census Bureau. It was $54,744 in 2010 and $77,827 in 2020. Whereas, the top income tax rate decreased from 5% (in 2010) to 4.95% (in 2020). To overcome the higher costs, you may ask your employer to withhold your earnings or invest more in different employee plans.
New York
To take $100k home, you must earn $147,077 per year. This city has the highest tax rates. So, your take-home salary will be 67.99% of the total salary. So, you must also earn more in New York. State income tax is 5.51% and sales tax is 4% which can go to 9%.
If you earn $100k, you can take only $66,888. So, you must pay according to the high costs of living.
You must pay $46,413 as tax and your employer must pay $11,540. So, your real estate tax rises to 4.9%. You may survive in this city by asking your employer to write your additional amount in your W-4. You may also contribute more to flexible employee savings, retirement plans, etc.
Alabama
The salary or income needed per year to take a $100k home in Alabama is $142,093. Income tax rates in this city can go down from 5% to 2%. However, the state income tax is 3.97%. You may also reduce your federal income taxes. You will end up getting 77.47% of your total income after paying all taxes.
The total tax will be $41,309 which increases to $52,560 including the employer’s tax. The income tax rate in Alabama has always been 5% (from 2012 to 2021). However, the median household income has increased from $41,415 to $53,956 (from 2011 to 2020), according to the US Census Bureau.
Indiana
To take home $100k in Indiana, you must earn $144,339 per year. As a resident of Indiana, you must pay a flat income tax of 3.23%. This city also imposes property taxes and local income taxes. You will end up getting 71.6% of your total pay. It means you will earn $8,612 per month. Sales tax is 7% throughout the city.
However, you must pay Federal, State Income Tax, Social Security, and Medicare. These consist of the remaining 28.4% of your income. You will end up paying $52,373 including the Employer Tax. If you get paid $100 more, the tax will be $33.02. It is called Marginal tax.
Texas
Your annual salary must be $134,630 to take $100k home in Texas. This state does not impose a State Income Tax but a strange sales tax of 6.25% on belt buckles. Sales tax, especially property tax, is relatively high. You must not pay income tax and inheritance tax but end up paying federal taxes, Medicare, and social security. You can take only 75.2% of your total pay home after paying taxes.
Therefore, if you earn $134,630 per year in the US, you will end up paying $33,338 for taxes. You may use supplemental wages like overtime, prizes, commissions, etc to survive here. However, the median household income has increased from $48,615 (in 2010) to $66,301 (in 2020) in Texas.
Conclusion
Earning $100K in the US is not a cakewalk. You must face deductions and heavy taxes in this country. If $100K is your salary, you will end up taking around $70,000. This amount differs according to the taxes imposed in every state. Saving and earning more are the two possible ways to deal with the higher costs of living in the US. You may get tax refunds, but you may still owe less.
Frequently Asked Questions
- In Which State Should You Earn The Least To Take $100K Home?
You may earn the least in Alaska, Florida, Nevada, South Dakota, and Tennessee to take a $100K home.
- What Are Some No Income Tax States In The US?
Some No-Income Tax States in the US are Washington, Wyoming, Nevada, and South Dakota.
