1. What is State To State Salary Comparison?

This calculator compares how much your salary would be worth in different US states after accounting for federal taxes, state taxes, and FICA contributions (Social Security and Medicare).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross\ Pay \) — Your annual salary before taxes
• \( Federal\ Tax \) — Calculated based on IRS tax brackets
• \( State\ Tax \) — Varies by state (some states have no income tax)
• \( FICA \) — Social Security (6.2%) + Medicare (1.45%)

3. Importance of Salary Comparison

Details: Understanding how taxes affect your take-home pay in different states is crucial for relocation decisions, job offers evaluation, and financial planning.

4. Using the Calculator

Tips: Enter your gross annual salary in USD. The calculator will show you a comparison of net pay across all US states, accounting for their different tax structures.

5. Frequently Asked Questions (FAQ)

Q1: Are local/city taxes included?
A: No, this calculator only accounts for federal and state income taxes. Some cities have additional local taxes.

Q2: How accurate are the state tax calculations?
A: This uses standard state tax rates. Actual taxes may vary based on deductions, credits, and local variations.

Q3: Does this account for tax brackets?
A: Federal taxes are calculated using progressive tax brackets. State taxes are simplified to flat rates for comparison.

Q4: What about 401(k) or other deductions?
A: This calculator only accounts for mandatory deductions. Retirement contributions would further reduce taxable income.

Q5: Why do some states have higher net pay?
A: States with no income tax (like Texas, Florida) typically show higher net pay for the same gross salary.