How Much You Take Home from the Average Salary in Each State
It’s no secret that taxes can take a big bite out of your paycheck. Since income tax rates vary from state to state, however, the size of that bite will fluctuate depending on where you live. In Tennessee, for example, only 18.06% of your paycheck would go towards taxes. In Hawaii, on the other hand, taxes take a whopping 27.42% of your total paycheck.
See: What You Actually Net From a $200K Salary in Every State
To find out just how much money you’ll take home on average in your state, GOBankingRates looked at each state’s mean annual income and tax rate. The results? 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. States are ranked in order from lowest to highest total take-home pay.
Last updated: Jan. 11, 2021
1. Mississippi
Median income: $45,792
Tax burden: 19.22%
Total income taxes paid: $8,803
Annual salary taken home: $36,989
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2. Arkansas
Median income: $48,952
Tax burden: 20.14%
Total income taxes paid: $9,859
Annual salary taken home: $39,093
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3. West Virginia
Median income: $48,850
Tax burden: 19.10%
Total income taxes paid: $9,329
Annual salary taken home: $39,521
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4. Alabama
Median income: $51,734
Tax burden: 20.12%
Total income taxes paid: $10,408
Annual salary taken home: $41,326
5. Louisiana
Median income: $51,073
Tax burden: 18.89%
Total income taxes paid: $9,647
Annual salary taken home: $41,426
6. Kentucky
Median income: $52,295
Tax burden: 20.24%
Total income taxes paid: $10,586
Annual salary taken home: $41,709
7. New Mexico
Median income: $51,945
Tax burden: 19.60%
Total income taxes paid: $10,180
Annual salary taken home: $41,765
8. Oklahoma
Median income: $54,449
Tax burden: 20.42%
Total income taxes paid: $11,120
Annual salary taken home: $43,329
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9. South Carolina
Median income: $56,227
Tax burden: 21.84%
Total income taxes paid: $12,278
Annual salary taken home: $43,949
10. Montana
Median income: $57,153
Tax burden: 21.89%
Total income taxes paid: $12,509
Annual salary taken home: $44,644
11. North Carolina
Median income: $57,341
Tax burden: 21.66%
Total income taxes paid: $12,423
Annual salary taken home: $44,918
12. Missouri
Median income: $57,409
Tax burden: 21.48%
Total income taxes paid: $12,332
Annual salary taken home: $45,077
13. Maine
Median income: $58,924
Tax burden: 22.85%
Total income taxes paid: $13,462
Annual salary taken home: $45,462
14. Tennessee
Median income: $56,071
Tax burden: 18.06%
Total income taxes paid: $10,124
Annual salary taken home: $45,947
15. Indiana
Median income: $57,603
Tax burden: 20.14%
Total income taxes paid: $11,602
Annual salary taken home: $46,001
16. Idaho
Median income: $60,999
Tax burden: 23.36%
Total income taxes paid: $14,250
Annual salary taken home: $46,749
17. Michigan
Median income: $59,584
Tax burden: 21.37%
Total income taxes paid: $12,733
Annual salary taken home: $46,851
18. Ohio
Median income: $58,642
Tax burden: 19.03%
Total income taxes paid: $11,160
Annual salary taken home: $47,482
19. Iowa
Median income: $61,691
Tax burden: 22.47%
Total income taxes paid: $13,859
Annual salary taken home: $47,832
20. Georgia
Median income: $61,980
Tax burden: 22.78%
Total income taxes paid: $14,117
Annual salary taken home: $47,863
21. Kansas
Median income: $62,087
Tax burden: 22.30%
Total income taxes paid: $13,846
Annual salary taken home: $48,241
22. Florida
Median income: $59,227
Tax burden: 17.94%
Total income taxes paid: $10,623
Annual salary taken home: $48,604
23. South Dakota
Median income: $59,533
Tax burden: 18.00%
Total income taxes paid: $10,713
Annual salary taken home: $48,820
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24. Nebraska
Median income: $63,229
Tax burden: 22.73%
Total income taxes paid: $14,375
Annual salary taken home: $48,854
25. Arizona
Median income: $62,055
Tax burden: 20.82%
Total income taxes paid: $12,921
Annual salary taken home: $49,134
26. Vermont
Median income: $63,001
Tax burden: 21.90%
Total income taxes paid: $13,795
Annual salary taken home: $49,206
27. Wisconsin
Median income: $64,168
Tax burden: 23.27%
Total income taxes paid: $14,935
Annual salary taken home: $49,233
28. Oregon
Median income: $67,058
Tax burden: 26.27%
Total income taxes paid: $17,615
Annual salary taken home: $49,443
29. Pennsylvania
Median income: $63,463
Tax burden: 21.19%
Total income taxes paid: $13,447
Annual salary taken home: $50,016
30. Nevada
Median income: $63,276
Tax burden: 18.69%
Total income taxes paid: $11,824
Annual salary taken home: $51,452
31. North Dakota
Median income: $64,577
Tax burden: 19.98%
Total income taxes paid: $12,903
Annual salary taken home: $51,674
32. Texas
Median income: $64,034
Tax burden: 18.81%
Total income taxes paid: $12,048
Annual salary taken home: $51,986
33. Wyoming
Median income: $65,003
Tax burden: 18.98%
Total income taxes paid: $12,336
Annual salary taken home: $52,667
34. Illinois
Median income: $69,187
Tax burden: 23.68%
Total income taxes paid: $16,387
Annual salary taken home: $52,800
35. Delaware
Median income: $70,176
Tax burden: 23.78%
Total income taxes paid: $16,689
Annual salary taken home: $53,487
36. New York
Median income: $72,108
Tax burden: 24.77%
Total income taxes paid: $17,863
Annual salary taken home: $54,245
37. Rhode Island
Median income: $71,169
Tax burden: 23.00%
Total income taxes paid: $16,367
Annual salary taken home: $54,802
38. Minnesota
Median income: $74,593
Tax burden: 25.49%
Total income taxes paid: $19,016
Annual salary taken home: $55,577
39. Utah
Median income: $75,780
Tax burden: 24.63%
Total income taxes paid: $18,668
Annual salary taken home: $57,112
40. Virginia
Median income: $76,456
Tax burden: 25.06%
Total income taxes paid: $19,157
Annual salary taken home: $57,299
41. Colorado
Median income: $77,127
Tax burden: 24.54%
Total income taxes paid: $18,927
Annual salary taken home: $58,200
42. New Hampshire
Median income: $77,933
Tax burden: 24.95%
Total income taxes paid: $19,446
Annual salary taken home: $58,487
43. Connecticut
Median income: $78,833
Tax burden: 24.91%
Total income taxes paid: $19,640
Annual salary taken home: $59,193
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44. Alaska
Median income: $75,463
Tax burden: 20.46%
Total income taxes paid: $15,437
Annual salary taken home: $60,026
45. California
Median income: $80,440
Tax burden: 25.37%
Total income taxes paid: $20,409
Annual salary taken home: $60,031
46. Hawaii
Median income: $83,102
Tax burden: 27.42%
Total income taxes paid: $22,788
Annual salary taken home: $60,314
47. Washington
Median income: $78,687
Tax burden: 20.83%
Total income taxes paid: $16,393
Annual salary taken home: $62,294
48. Massachusetts
Median income: $85,843
Tax burden: 25.84%
Total income taxes paid: $22,186
Annual salary taken home: $63,657
49. Maryland
Median income: $86,738
Tax burden: 25.66%
Total income taxes paid: $22,258
Annual salary taken home: $64,480
50. New Jersey
Median income: $85,751
Tax burden: 24.55%
Total income taxes paid: $21,049
Annual salary taken home: $64,702
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Methodology: GOBankingRates, in order to find how much you take home from the average salary in each state, sourced both the federal and state tax brackets from the Tax Foundation’s 2020 data. GOBankingRates used an in-house income tax calculator to find both the effective and marginal tax rate on income of $100,000 in every state. GOBankingRates also found the Federal Insurance Contributions Act tax with its rate sourced from ADP. These calculations were done for a person filing their taxes as a single person and for a married couple filing jointly. GOBankingRates found the total income taxes paid, total tax burden, total take home pay, total gross bi-weekly paycheck, the after income tax bi-weekly paycheck for each state, and the total amount taken out of each bi-weekly paycheck due to taxes. Income data was collected from the 2019 American Community Survey. All data was collected on and up top date as of Oct. 2, 2020.
This article originally appeared on GOBankingRates.com: How Much You Take Home from the Average Salary in Each State
