Reaching a six-figure salary is a significant achievement for many people, but how much you actually take home can vary quite a bit depending on your state of residence.
A recent analysis by Gobankingrates revealed that a single filer earning $100,000 annually, after applying the standard deductions common in the U.S., would see considerable differences in after-tax income across states. For example, Oregon imposes the steepest tax burden, leaving a take-home pay of approximately $70,500.
To arrive at these figures, Gobankingrates relied on federal and state tax bracket information from the Tax Foundation, as well as payroll tax data from the Social Security Administration.
For those filing as single, federal Payroll taxes including Social Security and Medicare kick in before state taxes. Specifically, Gobankingrates utilized a payroll tax rate of 7.65% for their calculations, which reflects the standard contribution from W-2 employees. Those self-employed typically have to contribute a bit more, which is something to keep in mind.
Here are five states where individuals earning $100,000 a year see markedly lower post-tax incomes:
- Oregon: $70,540 after tax
- Hawaii: $72,579 after tax
- California: $73,409 after tax
- Delaware: $73,367 after tax
- Minnesota: $73,425 after tax
On the flip side, residents in Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Alaska, and New Hampshire—states devoid of income tax—are getting closer to $78,700 in take-home pay.
Even with the same salary, the cost of living can drastically alter how far your $100,000 goes. For instance, earning that amount in California, where living expenses are notably high, feels quite different than it would in more affordable states like Alabama or Mississippi.
Nevertheless, that six-figure mark is a big deal; about 45% of adults express that they need that amount to feel financially secure, according to Bankrate’s Financial Freedom Survey.
Interestingly, over half of Americans believe they’d need to make at least $200,000 to consider themselves rich. A survey showed that aiming for a $100,000 salary doesn’t automatically translate to wealth, which is, I think, a little disheartening.
As of 2023, the median household income stands at $80,610, per the U.S. Census Bureau. For many people, hitting that six-figure salary feels both ambitious and attainable, which perhaps explains why it’s such a popular goal.
Below, you’ll find the after-tax salary figures for each state listed alphabetically, along with their respective effective state tax rates. In many cases, the rates represent an average across tax brackets, acknowledging that different income levels are taxed at varying rates.
Alabama
- Post-tax income: $73,926
- Effective State Income Tax Rates: 4.81%
Alaska
- Post-tax income: $78,736
- Effective State Income Tax Rates: 0%
Arizona
- Post-tax income: $76,611
- Effective State Income Tax Rates: 2.13%
Arkansas
- Post-tax income: $75,506
- Effective State Income Tax Rates: 3.23%
California
- Post-tax income: $73,409
- Effective State Income Tax Rates: 5.33%
Colorado
- Post-tax income: $74,996
- Effective State Income Tax Rates: 3.74%
Connecticut
- Post-tax income: $73,986
- Effective State Income Tax Rates: 4.75%
Delaware
- Post-tax income: $73,367
- Effective State Income Tax Rates: 5.37%
Florida
- Post-tax income: $78,736
- Effective State Income Tax Rates: 0%
Georgia
- Post-tax income: $73,993
- Effective State Income Tax Rates: 4.74%
Hawaii
- Post-tax income: $72,579
- Effective State Income Tax Rates: 6.16%
Idaho
- Post-tax income: $74,157
- Effective State Income Tax Rates: 4.58%
Illinois
- Post-tax income: $73,786
- Effective State Income Tax Rates: 4.95%
Indiana
- Post-tax income: $75,736
- Effective State Income Tax Rates: 3%
Iowa
- Post-tax income: $74,936
- Effective State Income Tax Rates: 3.8%
Kansas
- Post-tax income: $73,445
- Effective State Income Tax Rates: 5.29%
Kentucky
- Post-tax income: $74,867
- Effective State Income Tax Rates: 3.87%
Louisiana
- Post-tax income: $76,111
- Effective State Income Tax Rates: 2.63%
Maine
- Post-tax income: $73,167
- Effective State Income Tax Rates: 5.57%
Maryland
- Post-tax income: $74,167
- Effective State Income Tax Rates: 4.57%
Massachusetts
- Post-tax income: $73,736
- Effective State Income Tax Rates: 5%
Michigan
- Post-tax income: $74,486
- Effective State Income Tax Rates: 4.25%
Minnesota
- Post-tax income: $73,425
- Effective State Income Tax Rates: 5.31%
Mississippi
- Post-tax income: $74,877
- Effective State Income Tax Rates: 3.86%
Missouri
- Post-tax income: $74,917
- Effective State Income Tax Rates: 3.82%
Montana
- Post-tax income: $73,974
- Effective State Income Tax Rates: 4.76%
Nebraska
- Post-tax income: $74,461
- Effective State Income Tax Rates: 4.27%
Nevada
- Post-tax income: $78,736
- Effective State Income Tax Rates: 0%
New Hampshire
- Post-tax income: $78,736
- Effective State Income Tax Rates: 0%
New Jersey
- Post-tax income: $74,490
- Effective State Income Tax Rates: 4.25%
New Mexico
- Post-tax income: $75,113
- Effective State Income Tax Rates: 3.62%
New York
- Post-tax income: $73,784
- Effective State Income Tax Rates: 4.95%
North Carolina
- Post-tax income: $75,028
- Effective State Income Tax Rates: 3.71%
North Dakota
- Post-tax income: $78,024
- Effective State Income Tax Rates: 0.71%
Ohio
- Post-tax income: $76,702
- Effective State Income Tax Rates: 2.03%
Oklahoma
- Post-tax income: $74,476
- Effective State Income Tax Rates: 4.26%
Oregon
- Post-tax income: $70,540
- Effective State Income Tax Rates: 8.2%
Pennsylvania
- Post-tax income: $75,666
- Effective State Income Tax Rates: 3.07%
Rhode Island
- Post-tax income: $75,303
- Effective State Income Tax Rates: 3.43%
South Carolina
- Post-tax income: $74,143
- Effective State Income Tax Rates: 4.59%
South Dakota
- Post-tax income: $78,736
- Effective State Income Tax Rates: 0%
Tennessee
- Post-tax income: $78,736
- Effective State Income Tax Rates: 0%
Texas
- Post-tax income: $78,736
- Effective State Income Tax Rates: 0%
Utah
- Post-tax income: $74,227
- Effective State Income Tax Rates: 4.51%
Vermont
- Post-tax income: $74,181
- Effective State Income Tax Rates: 4.55%
Virginia
- Post-tax income: $73,732
- Effective State Income Tax Rates: 5%
Washington
- Post-tax income: $78,736
- Effective State Income Tax Rates: 0%
West Virginia
- Post-tax income: $74,754
- Effective State Income Tax Rates: 3.98%
Wisconsin
- Post-tax income: $74,551
- Effective State Income Tax Rates: 4.18%
Wyoming
- Post-tax income: $78,736
- Effective State Income Tax Rates: 0%
