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Honolulu: Where High Earners Lose 2nd Most To Taxes and Cost of Living
By Selected News Articles @ 12:00 PM :: 2112 Views :: Honolulu County, Hawaii Statistics, Cost of Living

Where High Earners Lose The Most To Taxes and Cost of Living — 2023 Study

by Patrick Villanova, CEPF®, Smart Asset, JUN 01, 2023

An annual income of $250,000 won’t put you in the top 1% of earners, but it will get you close to it. That’s because only 7% of households in the United States earn $250,000 per year1. How far that income truly goes in a given city largely depends on the tax environment and cost of living of the area. For example, a $250,000 salary in uber-expensive cities like New York and San Francisco is worth less than $83,000 after accounting for taxes and the cost of living.

To gauge how much $250,000 is actually worth in different parts of the country, SmartAsset compared the after-tax income in 76 of the largest U.S. cities and then adjusted those figures for the cost of living in each place.

Key Findings

In New York City and San Francisco, $250K is worth just short of $83,000 after factoring in taxes and cost of living. NYC, Honolulu and San Francisco offer the lowest real value of a high income salary. Residents are taxed roughly 6 percentage points more in taxes at this income level as compared to a $100,000 salary.

On average, people making $250K per year pay 34% in taxes. Meanwhile, taxpayers who make $100,000 in these 76 cities are subject to a rate that’s nearly 5 percentage points lower (29.33%).

Portland, Oregon is least favorable to high income earners. Portland has the highest increase of taxes from a $100,000 salary to a $250,000 salary. Between these salary levels, the effective tax rate jumps 7.47% to 41%.

High earners may be able to take advantage of lower tax rates by moving. In some cases, a $250K earner can be taxed less than a $100K earner. There are 21 cities where those earning $250K per year in one city have a lower tax rate than those who earn $100,000 in 35 other cities. Most of the lowest effective tax rates on $250K are in places with no state income tax, including Seattle and Spokane, WA; Plano, Austin and Dallas, TX; Miami and Orlando, FL; Reno and Las Vegas, NV; and Nashville, TN.

The Purchasing Power of $250,000 by City

The purchasing power of $250,000 is determined by adjusting for taxes and cost of living premiums.

Where the Real Value of a $250k Salary is Lowest

  1. New York, NY: $82,421.28
  2. Honolulu, HI: $82,672.04
  3. San Francisco, CA: $82,776.26
  4. Los Angeles, CA: $101,634.75
  5. Long Beach, CA: $101,634.75
  6. Washington, DC: $101,865.06
  7. San Diego, CA: $105,151.29
  8. Oakland, CA: $105,222.67
  9. Boston, MA: $108,991.33
  10. Seattle, WA: $115,346.91

Where the Real Value of a $250k Salary is Highest

  1. Memphis, TN $203,664
  2. El Paso, TX  $200,180
  3. Oklahoma City, OK  $197,381
  4. Corpus Christi, TX  $196,594
  5. Lubbock, TX  $196,374
  6. Houston, TX  $191,240
  7. San Antonio, TX (Tie)  $188,772
  8. Fort Worth, TX (Tie)  $188,772
  9. Arlington, TX (Tie) $188,772
  10. Jacksonville, FL $186,170

read … Full Report

 

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