1. What is the Salary Comparison Calculator?

This calculator compares net salaries in California vs. Texas, accounting for California's state income tax that Texas doesn't have. It helps evaluate the financial impact of living in these states.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

• Gross Pay — Annual salary before deductions
• Federal Tax — Estimated federal income tax
• California State Tax — Estimated CA state income tax
• FICA — Social Security and Medicare taxes (7.65%)

3. Importance of Net Pay Comparison

Details: Comparing net pay helps understand the actual take-home difference between states with different tax structures, crucial for relocation decisions.

4. Using the Calculator

Tips: Enter all amounts in USD/year. For accurate results, use actual tax amounts or reliable estimates from paycheck calculators.

5. Frequently Asked Questions (FAQ)

Q1: Why no state tax for Texas?
A: Texas is one of several U.S. states with no state income tax, though it has higher property and sales taxes.

Q2: Are other deductions considered?
A: This calculates basic tax differences. Health insurance, retirement contributions etc. would affect both states similarly.

Q3: How accurate is this comparison?
A: It shows the tax difference but doesn't account for cost of living variations between states.

Q4: Should I use gross or net pay for comparison?
A: Net pay is more meaningful as it reflects actual take-home amount after mandatory deductions.

Q5: What about local taxes?
A: Some California cities have local taxes which would further reduce net pay there.