How Much You Really Take Home From the Average Salary in Each State
Your net take-home percentage can vary significantly by state.
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It’s no secret that taxes can take a big bite out of your paycheck. However, because income tax rates vary from state to state, the size of that bite will fluctuate depending on where you live.
In a recent study, GOBankingRates looked at each state’s mean annual income and crunched the numbers to determine the approximate biweekly, monthly and annual take-home pay. This allows you to see the typical income in every state after taxes. For research purposes, the capital city in each state was used as a reference.
Not surprisingly, all seven states with no income tax — Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming — ranked among the states with the highest percentage of take-home income, but only one of the states cracked the top five in terms of total annual salary taken home.
The study results point out exactly how dramatically taxes can impact your paycheck based on where you live. In Tennessee, for example, only 17.53% of your paycheck would go towards taxes. In Hawaii, on the other hand, taxes take a whopping 29.27% of your total paycheck. For context, the U.S. average is 23.35%.
Your state’s tax bite can effectively act as a pay raise — or cut. In Wyoming, for example, the median household income ranks only No. 20 in the nation. However, in terms of take-home pay, Wyoming jumps up to No. 13, thanks to its low 19.97% tax bite. Maryland, on the other hand, ranks No. 1 in terms of median household income, but only No. 4 in terms of total take-home pay.
The bottom line is that if you live in a high-income state, your take-home pay will still usually be higher than what you’d bring home in a low-tax state, even after factoring in taxes. However, on a percentage basis, you might end up with less in your bank account than you might expect. Here’s a look at just how much the average taxpayer brings home on a state-by-state basis, ranked in order of total take-home pay.
Last updated: Nov. 28, 2019
1. Alaska
- Median household income: $76,114
- Total annual cost of living: $41,615.90
- Percentage of annual salary taken home: 77.84%
Annual salary taken home: $59,250
2. New Jersey
- Median household income: $76,475
- Total annual cost of living: $39,032.86
- Percentage of annual salary taken home: 73.79%
Annual salary taken home: $56,431
3. New Hampshire
- Median household income: $71,305
- Total annual cost of living: $32,635.98
- Percentage of annual salary taken home: 78.63%
Annual salary taken home: $56,065
4. Maryland
- Median household income: $78,916
- Total annual cost of living: $40,916.40
- Percentage of annual salary taken home: 70.76%
Annual salary taken home: $55,842
5. District of Columbia
- Median household income: $77,649
- Total annual cost of living: $51,902.06
- Percentage of annual salary taken home: 71.51%
Annual salary taken home: $55,527
6. Massachusetts
- Median household income: $74,167
- Total annual cost of living: $41,713.84
- Percentage of annual salary taken home: 73.34%
Annual salary taken home: $54,397
7. Connecticut
- Median household income: $73,781
- Total annual cost of living: $39,146.61
- Percentage of annual salary taken home: 73.36%
Annual salary taken home: $54,129
8. Hawaii
- Median household income: $74,923
- Total annual cost of living: $64,695.32
- Percentage of annual salary taken home: 70.73%
Annual salary taken home: $52,992
9. Washington
- Median household income: $66,174
- Total annual cost of living: $33,882.38
- Percentage of annual salary taken home: 79.27%
Annual salary taken home: $52,455
10. Virginia
- Median household income: $68,766
- Total annual cost of living: $30,565.16
- Percentage of annual salary taken home: 73.81%
Annual salary taken home: $50,754
11. Colorado
- Median household income: $65,458
- Total annual cost of living: $32,506.81
- Percentage of annual salary taken home: 74.86%
Annual salary taken home: $49,003
12. California
- Median household income: $67,169
- Total annual cost of living: $45,003.09
- Percentage of annual salary taken home: 72.88%
Annual salary taken home: $48,953
13. Wyoming
- Median household income: $60,938
- Total annual cost of living: $27,811.20
- Percentage of annual salary taken home: 80.03%
Annual salary taken home: $48,771
14. Utah
- Median household income: $65,325
- Total annual cost of living: $29,233.65
- Percentage of annual salary taken home: 74.43%
Annual salary taken home: $48,624
15. North Dakota
- Median household income: $61,285
- Total annual cost of living: $30,039.12
- Percentage of annual salary taken home: 78.66%
Annual salary taken home: $48,208
16. Minnesota
- Median household income: $65,699
- Total annual cost of living: $29,878.29
- Percentage of annual salary taken home: 73.21%
Annual salary taken home: $48,095
17. Delaware
- Median household income: $63,036
- Total annual cost of living: $30,823.82
- Percentage of annual salary taken home: 75.06%
Annual salary taken home: $47,316
18. New York
- Median household income: $62,765
- Total annual cost of living: $42,828.30
- Percentage of annual salary taken home: 74.49%
Annual salary taken home: $46,754
19. Texas
- Median household income: $57,051
- Total annual cost of living: $27,543.80
- Percentage of annual salary taken home: 80.69%
Annual salary taken home: $46,037
20. Illinois
- Median household income: $61,229
- Total annual cost of living: $28,584.78
- Percentage of annual salary taken home: 75.04%
Annual salary taken home: $45,945
21. Rhode Island
- Median household income: $61,043
- Total annual cost of living: $36,750.27
- Percentage of annual salary taken home: 75.17%
Annual salary taken home: $45,885
22. Nevada
- Median household income: $55,434
- Total annual cost of living: $33,994.26
- Percentage of annual salary taken home: 81%
Annual salary taken home: $44,899
23. Vermont
- Median household income: $57,808
- Total annual cost of living: $36,487.10
- Percentage of annual salary taken home: 76.18%
Annual salary taken home: $44,041
24. South Dakota
- Median household income: $54,126
- Total annual cost of living: $29,818.34
- Percentage of annual salary taken home: 81.25%
Annual salary taken home: $43,979
25. Pennsylvania
- Median household income: $56,951
- Total annual cost of living: $29,737.64
- Percentage of annual salary taken home: 75.58%
Annual salary taken home: $43,045
26. Nebraska
- Median household income: $56,675
- Total annual cost of living: $27,590.30
- Percentage of annual salary taken home: 75.73%
Annual salary taken home: $42,918
27. Iowa
- Median household income: $56,570
- Total annual cost of living: $27,550.53
- Percentage of annual salary taken home: 75.67%
Annual salary taken home: $42,804
28. Wisconsin
- Median household income: $56,759
- Total annual cost of living: $29,497.12
- Percentage of annual salary taken home: 75.08%
Annual salary taken home: $42,614
29. Kansas
- Median household income: $55,477
- Total annual cost of living: $26,737.90
- Percentage of annual salary taken home: 76.42%
Annual salary taken home: $42,396
30. Arizona
- Median household income: $53,510
- Total annual cost of living: $31,143.91
- Percentage of annual salary taken home: 78.68%
Annual salary taken home: $42,101
31. Florida
- Median household income: $50,883
- Total annual cost of living: $29,902.22
- Percentage of annual salary taken home: 81.95%
Annual salary taken home: $41,698
32. Oregon
- Median household income: $56,119
- Total annual cost of living: $42,011.24
- Percentage of annual salary taken home: 73.64%
Annual salary taken home: $41,324
33. Maine
- Median household income: $53,024
- Total annual cost of living: $35,386.83
- Percentage of annual salary taken home: 76.25%
Annual salary taken home: $40,433
34. Missouri
- Median household income: $51,542
- Total annual cost of living: $26,300.99
- Percentage of annual salary taken home: 78.28%
Annual salary taken home: $40,345
35. Georgia
- Median household income: $52,977
- Total annual cost of living: $26,652.61
- Percentage of annual salary taken home: 76.11%
Annual salary taken home: $40,320
36. Michigan
- Median household income: $52,668
- Total annual cost of living: $26,534
- Percentage of annual salary taken home: 76.30%
Annual salary taken home: $40,188
37. Tennessee
- Median household income: $48,708
- Total annual cost of living: $26,226.36
- Percentage of annual salary taken home: 82.47%
Annual salary taken home: $40,168
38. Ohio
- Median household income: $52,407
- Total annual cost of living: $26,956.44
- Percentage of annual salary taken home: 76.28%
Annual salary taken home: $39,975
39. Indiana
- Median household income: $52,182
- Total annual cost of living: $26,742.87
- Percentage of annual salary taken home: 76.41%
Annual salary taken home: $39,872
40. Idaho
- Median household income: $50,985
- Total annual cost of living: $28,101.15
- Percentage of annual salary taken home: 77.15%
Annual salary taken home: $39,334
41. Montana
- Median household income: $50,801
- Total annual cost of living: $31,468.98
- Percentage of annual salary taken home: 76.80%
Annual salary taken home: $39,014
42. North Carolina
- Median household income: $50,320
- Total annual cost of living: $27,927.58
- Percentage of annual salary taken home: 77.45%
Annual salary taken home: $38,974
43. Oklahoma
- Median household income: $49,767
- Total annual cost of living: $25,919.13
- Percentage of annual salary taken home: 78.22%
Annual salary taken home: $38,930
44. South Carolina
- Median household income: $48,781
- Total annual cost of living: $27,938.22
- Percentage of annual salary taken home: 76.18%
Annual salary taken home: $37,162
45. Louisiana
- Median household income: $46,710
- Total annual cost of living: $27,950.30
- Percentage of annual salary taken home: 79.40%
Annual salary taken home: $37,089
46. New Mexico
- Median household income: $46,718
- Total annual cost of living: $27,649.10
- Percentage of annual salary taken home: 78.89%
Annual salary taken home: $36,856
47. Alabama
- Median household income: $46,472
- Total annual cost of living: $25,893.40
- Percentage of annual salary taken home: 78.77%
Annual salary taken home: $36,607
48. Kentucky
- Median household income: $46,535
- Total annual cost of living: $26,591.91
- Percentage of annual salary taken home: 78.48%
Annual salary taken home: $36,521
49. West Virginia
- Median household income: $44,061
- Total annual cost of living: $26,341.21
- Percentage of annual salary taken home: 78.78%
Annual salary taken home: $34,713
50. Arkansas
- Median household income: $43,813
- Total annual cost of living: $25,273.77
- Percentage of annual salary taken home: 78.57%
Annual salary taken home: $34,424
51. Mississippi
- Median household income: $42,009
- Total annual cost of living: $25,410.42
- Percentage of annual salary taken home: 79.51%
Annual salary taken home: $33,403
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Methodology: GOBankingRates found each state’s median household income using the 2017 American Community Survey conducted by the United States Census Bureau. GOBankingRates then used SmartAsset’s paycheck calculator to determine each state’s average bi-weekly, monthly and annual take-home pay. Each state’s capital city was used to make calculations, and there was one federal tax allowance used for each state. The total annual take-home pay was the only scoring factor. Each state’s annual cost of living was also found for supplemental data, using the 2018 Bureau of Labor Statistics Consumer Expenditure Survey and state-level cost of living indices from the Missouri Economic Research and Information Center’s 2019 second quarter data. All data was compiled and up to date as of Nov. 5, 2019.
About the Author
John Csiszar
After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.
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