Renowned thinker Benjamin Franklin once famously stated, “In this world, nothing is certain except death and taxes.” This sentiment still holds true today. Regardless of the earnings from your job, paying taxes is an unavoidable reality. The amount owed to the government is not only determined by your income bracket but also by the state in which you reside, as each state has its tax regulations.
A prevalent question is: How much does the average American household bring home after taxes? This is a complex inquiry due to regional variations and differing median incomes in each state. Through recent exclusive research, GOBankingRates has dissected this question, providing insights on a state-by-state basis. Additionally, discover the post-tax income from a $100,000 salary in your state.
Alabama
Median Household Income: $94,555
After-Tax Take-Home Pay: $68,354
Alaska
Median Household Income: $119,037
After-Tax Take-Home Pay: $93,791
Arizona
Median Household Income: $102,016
After-Tax Take-Home Pay: $74,913
Arkansas
Median Household Income: $85,584
After-Tax Take-Home Pay: $61,103
California
Median Household Income: $126,075
After-Tax Take-Home Pay: $85,331
Colorado
Median Household Income: $123,719
After-Tax Take-Home Pay: $89,544
Connecticut
Median Household Income: $138,943
After-Tax Take-Home Pay: $94,333
Delaware
Median Household Income: $113,501
After-Tax Take-Home Pay: $87,242
Florida
Median Household Income: $96,830
After-Tax Take-Home Pay: $73,589
Georgia
Median Household Income: $106,678
After-Tax Take-Home Pay: $76,626
Hawaii
Median Household Income: $124,682
After-Tax Take-Home Pay: $86,376
Illinois
Median Household Income: $118,569
After-Tax Take-Home Pay: $81,542
Indiana
Median Household Income: $99,109
After-Tax Take-Home Pay: $73,822
Iowa
Median Household Income: $103,944
After-Tax Take-Home Pay: $74,276
Kansas
Median Household Income: $102,812
After-Tax Take-Home Pay: $73,381
Kentucky
Median Household Income: $91,578
After-Tax Take-Home Pay: $67,691
Louisiana
Median Household Income: $97,640
After-Tax Take-Home Pay: $71,251
Maine
Median Household Income: $100,435
After-Tax Take-Home Pay
Maryland:
– Median Household Income: $145,017
– Take-Home Pay After Taxes: $101,484
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Massachusetts:
– Median Household Income: $147,219
– Take-Home Pay After Taxes: $98,860
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Michigan:
– Median Household Income: $103,399
– Take-Home Pay After Taxes: $75,442
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Minnesota:
– Median Household Income: $121,595
– Take-Home Pay After Taxes: $86,695
Check out: Grant Cardone — 4 Ways To Reduce Your Tax Bill To Build Wealth
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Mississippi:
– Median Household Income: $87,568
– Take-Home Pay After Taxes: $64,505
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Missouri:
– Median Household Income: $99,276
– Take-Home Pay After Taxes: $72,515
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Montana:
– Median Household Income: $95,586
– Take-Home Pay After Taxes: $73,100
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Nebraska:
– Median Household Income: $105,989
– Take-Home Pay After Taxes: $76,681
Consider this: 5 Key Tax Strategies for Entrepreneurs — What You Need To Know
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Nevada:
– Median Household Income: $100,780
– Take-Home Pay After Taxes: $76,281
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New Hampshire:
– Median Household Income: $125,966
– Take-Home Pay After Taxes: $97,724
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New Jersey:
– Median Household Income: $142,693
– Take-Home Pay After Taxes: $95,463
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New Mexico:
– Median Household Income: $90,432
– Take-Home Pay After Taxes: $66,432
Trending Now: Here’s the Income Tax in Every State
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New York:
– Median Household Income: $122,968
– Take-Home Pay After Taxes: $81,651
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North Carolina:
– Median Household Income: $100,085
– Take-Home Pay After Taxes: $73,646
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North Dakota:
– Median Household Income: $112
Household Income: $84,598
Take-Home Pay After Taxes: $62,012
Wisconsin
Median Household Income: $106,788
Take-Home Pay After Taxes: $77,849
Wyoming
Median Household Income: $104,277
Take-Home Pay After Taxes: $82,026
Methodology:
In this study, GOBankingRates examined the median income of each state and computed the take-home pay for a married couple with a family after accounting for federal, state, and local taxes. The analysis began by determining the median household income of a married couple with a family in each state from the U.S. Census American Community Survey. Additionally, the overall cost of living index for each state was sourced from the Missouri Economic and Research Information Center, and the national average overall expenditure cost for a married couple with a family was considered to calculate the overall average expenditure cost in each state.
Subsequently, GOBankingRates identified the 2023 federal income tax brackets and rates, 2023 state income tax brackets and rates, and the 2023 state and local tax rates from TaxFoundation. In-house calculations were then used to determine the marginal tax rate, effective tax rate, and total tax paid for federal income taxes, state income taxes, FICA tax, and local sales tax. The average home value was obtained from the Zillow Home Value Index, and the average property tax rate was calculated using the median property taxes paid from the U.S. Census American Community Survey.
Moreover, the local sales tax was computed based on the average expenditure cost and local sales tax rates. To find the take-home pay after taxes, the federal income tax paid, state income tax paid, FICA tax paid, local sales tax paid, and property tax paid were deducted from the median household income. All data was collected and is current as of Feb. 20, 2024.
