An1 Budget in NYC

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Here’s a detailed breakdown for an Investment Banking Analyst 1 (An1) in NYC with a $110,000 base salary, including how much you can expect to take home after taxes and withholdings, how bonuses are taxed, and how to budget for rent, 401(k), and other expenses.

1. Take-Home Pay: Base Salary

Federal, State, and NYC Taxes

• Federal income tax: Progressive, but for $110K, effective rate is about 17–19% after deductions.
• NY State tax: ~6.3% effective for this income bracket.
• NYC tax: ~3.8% effective.
• Social Security & Medicare: 7.65% combined.

Estimated Total Tax Rate:

• All-in, you’ll lose about 32–35% of your gross salary to taxes and mandatory withholdings if you max your 401(k) (which lowers taxable income)123.
• 401(k) max for 2025: $23,500 (pre-tax, lowers taxable income)45.

Monthly Net Pay Calculation

• Gross monthly: $110,000 / 12 = $9,167
• 401(k) contribution: $23,500 / 12 ≈ $1,958/month (optional, but recommended)
• Taxable income after 401(k): $110,000 – $23,500 = $86,500

Estimated monthly take-home (after taxes & 401(k)):

• Federal tax: ≈ $1,400
• NY State tax: ≈ $450
• NYC tax: ≈ $270
• Social Security/Medicare: ≈ $700
• Total deductions: ≈ $2,820
• Net pay after taxes & 401(k):
  $9,167 – $1,958 (401k) – $2,820 (taxes) ≈ $4,389/month
• If you don’t max 401(k), net is closer to $5,900–$6,200/month613.

2. Rent and Expenses

• Rent: $2,400/month is typical for a studio or 1BR in Manhattan/Brooklyn.
• Utilities, food, gym: Estimate $700–$1,000/month.
• Leftover for savings, dates, fun, etc.:
  With 401(k): $4,389 – $2,400 (rent) – $900 (other) ≈ $1,089/month
  Without 401(k): $6,100 – $2,400 – $900 ≈ $2,800/month

3. Bonus Taxation

• Bonuses are taxed as ordinary income but are usually withheld at a higher rate (often 22–40% federal, plus state/local)728910.
• You are not actually taxed at a higher rate—just withheld at a higher rate. When you file your tax return, everything is reconciled and you may get a refund if too much was withheld789.
• Relocation bonuses: Usually subject to the same withholding as regular bonuses (often 22% federal flat rate). Some firms “gross up” relocation bonuses so you get the full amount after tax, but not all11.
• First-year bonus: Paid about 12 months after start date (summer 2026 if you start summer 2025)121314.

4. 401(k) Contributions

• Maxing your 401(k) ($23,500 for 2025) lowers your taxable income and is highly recommended if you can afford it1516174518.
• Employer match is “free money”—don’t leave it on the table.

5. Budgeting Tips

• Use net pay after 401(k) and taxes for monthly budgeting.
• Bonuses: Don’t count on the full amount for spending—expect 60–65% of the gross bonus to hit your account, with the rest withheld for taxes. Adjust your budget after your tax return if you get a refund78910.
• Relocation bonus: Add post-tax amount to your cash position, but keep enough liquidity for moving and initial NYC expenses.

Seems about right. I spent $1600 on rent as an analyst but that was on $85k base. The biggest thing will be how your costs scale relative to your income as you get raises. If you can avoid $:$ increases in spending relative to income, you will be in good shape. I’m a big believer in saving a decent chunk in base plus all bonus. Compounds quick

I'm getting ~4950 a month after 401k max and taxes in nyc (including city tax)

Uou forgot about the 7k/mo bottle service

I could definitely be wrong but I think there is a $15,000 deduction that everyone gets. Meaning subtract 15,000 from the 110,000, like you would a 401k contribution, and it should lower taxes a little

One thing not commonly mentioned is that although yes in theory you should get some of your bonus withholdings back in a tax refund, at the same time your base salary is actually under withheld throughout the year (withheld with the assumption of 110k base but not ~180k total comp) so you should get some bonus withholdings back but not as much as you think.

I would suggest modeling your salary and monthly savings given the tax bracket for your salary of $110k. Then think about what your total comp including bonus is, say $220k. Figure out the total effective tax rate on the $220k. Then just back into the implied tax rate on your bonus that would bring you to your overall effective tax rate on the $220k. I believe this is the best way to think of it: it should accurately show you what your paycheck will look like and then should effectively tax your bonus at your marginal rate. I’m making up numbers but something like:

Base $110 @ 30% tax
Total $220 @ 35% tax

Bonus $110 implies 40% tax

Your budget looks basically the exact same as mine, except I’m coming in at a little less in rent & the below. 

One difference is I included budget for dry cleaning each month. Another difference, I decided to not max 401k to have room to build an emergency fund. This is probably the last year you can invest in your Roth as well as from July-December you’ll make less than the income threshold. With the last two points in mind, my savings plan for AN1 is $7000 Roth + 6% 401k + 18000 emergency fund (expect to save 6k from base, and will top up with bonus). For AN2, my plan reverts to yours where the money I’m putting into Roth & emergency fund instead go towards maxing 401k

Lastly in terms of taxes, I first asked ChatGPT, and then I put my base salary into the ADP online calculator. GPT said the number ADP gave was more accurate so I’m going with that until I get my first paycheck

Thx for posting this when I made my budget it also seemed very very tight to me, good to see this as a sanity check

Buddy if you think you’re going to have the time or motivation or energy to go on $400 of dates every month in this job you have another thing coming.