Gross vs net pay and taxes

[kevinvan6000]

This past weekend I was chatting with some friends about work. One of them is considering relocating to take a new job that will pay roughly the same as his current job, but taxes are less then where we are now. He seems to think it is going to work out well for him, but I suspect the grass isn't as green on that side of the fence as he does. The conversation got me thinking though, and I wonder is there really a significant difference based on location when it comes to taxes paid? I've never really thought about it since it will likely never apply to me, odds are I'll never leave the location where I am now.

As a percentage of your pay cheque, how much do you guys have taken off for federal/state/provincial taxes? I understand there are different levels based on income, but I'm more interested in seeing the results from a location perspective. For instance, on my last pay I had 31.5% taken off for taxes. Not really looking for the dollar amount as I don't really want to know what people make.

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[key01]

That 31.5% is probably just your Fed/FICA. State income taxes vary wildly. Look at California and then start comparing other state income taxes. If you own a home the Real Estate taxes can also vary wildly. Look at at New Jersey or Illinois and then compare them to other states. State income and real estate taxes can have a huge impact on your cost of living by relocating for a new job.

 

[Interceptor]

Too many variables.
Tell your friend to have alot of children.

 

[theruleslawyer]

It can vary a ton. We have over 10% sales tax here and my property taxes are probably 3x just about anyone I know. Things coming out of your check is just a small piece of it for local taxes.

 

[Torinate]

Lol. As a fellow Ontario person, I can tell you when I lived in Florida my income tax was roughly half of what I pay now. Sales tax was half. Housing prices were roughly 1/3. Food prices on par. Gasoline was half. BUT, wages were 2/3 from what they are here. At least in the field I’m in.
I don’t need to tell you how much of a piss off it is to look at your pay stub and realize how much you’re actually making net vs gross!

Where’s your friend moving to?
Lots of things to consider though, including benefits. They are NOT created equal.

 

[JCFoster]

In Louisiana I’m at roughly 23%. That’s claiming single and none on fed and married and none on state. 25% if you include Medicare. Our sales tax is around 10% which is +- depending where you live in the state.

 

[JimC]

I just did a quick check on mine and it is 23% for fed/state/fica/medicare taxes.

BUT I have extra withheld for both state and federal taxes because wages aren't my only source of income. Rather than kick in a quarterly estimate, I just have extra withheld from the paycheck to take care of the taxes on the other income sources.

Taxes for Michigan are less than the taxes I paid in North Carolina. A 4.25% bite compared to a 5.25% bite (plus NC had local sales taxes and sales tax on everything including food and meds). I just remembered another odd tax I saw in NC -- a DONUT tax! Stopped to buy a couple of donuts and there was a state and local sales tax plus donut tax on them.

 

[KeyLime]

Taxes for Michigan are less than the taxes I paid in North Carolina. A 4.25% bite compared to a 5.25% bite (plus NC had local sales taxes and sales tax on everything including food and meds). I just remembered another odd tax I saw in NC -- a DONUT tax! Stopped to buy a couple of donuts and there was a state and local sales tax plus donut tax on them.

I think that Donut shop put one over on you. Donuts should be except from sales tax in NC. Unless the business didn't meet parts a&b below. Taking advantage of a hungry man looking for donuts. Shameful, simply shameful.

N.C. Gen. Stat. § 105-164.13B(a)(4) provides, in part, the food items that are subject to the State
tax rate include “[p]repared food, other than bakery items sold without eating utensils by an artisan bakery. The term “bakery item” includes bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas.”

N.C. Gen. Stat. § 105-164.13B(a)(4) provides, in part that an “artisan bakery” is “a bakery that
meets all the following requirements:
a. It derives over eighty percent (80%) of its gross receipts from bakery items.
b. Its annual gross receipts, combined with the gross receipts of all related persons, do not
exceed one million eight hundred thousand dollars ($1,800,000)

 

[JCFoster]

Probably the biggest variables for me at least would be property taxes and if they take state tax on your wages. I made the mistake of complaining about my property taxes to a cousin that lives in the Woodlands in Texas.

 

[Torinate]

Probably the biggest variables for me at least would be property taxes and if they take state tax on your wages. I made the mistake of complaining about my property taxes to a cousin that lives in the Woodlands in Texas.

Ok. Now you got my interest... how much are you considering terrible as far as property taxes?

 

[Balr14]

Some states have no state taxes. But, they make up for it in other ways, like sales tax, property tax, utility and service fees. Around here, property taxes vary all over the map, depending on which municipality you in. They can range from $10 to $40 per $100k of evaluation and evaluations can be anywhere from 50% to 120% of actual value.

 

[JCFoster]

Ok. Now you got my interest... how much are you considering terrible as far as property taxes?

Mine I don’t think are too terrible at $1500 year. But more than I’d care to pay to live in a rural area with poor roads. I think they were around $7000 in that part of Texas.

 

[JimC]

I think that Donut shop put one over on you. Donuts should be except from sales tax in NC. Unless the business didn't meet parts a&b below. Taking advantage of a hungry man looking for donuts. Shameful, simply shameful.

N.C. Gen. Stat. § 105-164.13B(a)(4) provides, in part, the food items that are subject to the State
tax rate include “[p]repared food, other than bakery items sold without eating utensils by an artisan bakery. The term “bakery item” includes bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas.”

N.C. Gen. Stat. § 105-164.13B(a)(4) provides, in part that an “artisan bakery” is “a bakery that
meets all the following requirements:
a. It derives over eighty percent (80%) of its gross receipts from bakery items.
b. Its annual gross receipts, combined with the gross receipts of all related persons, do not
exceed one million eight hundred thousand dollars ($1,800,000)

There actually is a difference depending upon how many you buy (up to 5 is considered a meal) and whether the place has plates/utensils. Artisan bakery is a very tight description. I looked into the tax when I was hit with it.

 

[theruleslawyer]

Mine I don’t think are too terrible at $1500 year. But more than I’d care to pay to live in a rural area with poor roads. I think they were around $7000 in that part of Texas.

Mine are upto about 12k and its not even an especially expensive house here. Just gross. I used to pay less in rent per month.

 

[Mr. Maboomba]

This thread is a weird way to figure out how much taxes vary from state to state. For a simpler way, try these charts. In summary, Washington and Hawaii suck if you’re poor, California and New York suck if you’re rich (while Nevada and Florida are ideal), Illinois and New York suck if you’re middle class. More surprisingly, or not, the rich don’t pay enough anywhere (why should the bottom 80% pay more as a percent of their income?).

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