CA vs TX Take Home Pay (Net of State Taxes, Prop Taxes)
For mid senior level roles, where firms have offices in both locations, have you seen a delta in comp for say Houston / Austin vs. SF / LA? CA has higher state taxes, but lower property taxes (similar home would cost more though). TX has no state tax but 2x the property tax rate. Unless home value in CA is 2-3x, I think you still come out ahead in TX. There are other factors to consider but curious if you see larger buyside firms have a TX discount or Bay Area premium, or if there is real arb here. Numbers add up as comp progresses…
Yes there is a discount between offices but overall you'll probably still come out ahead in TX. Only issue is if you look at life 30 years down the line when you retire you'll still be paying high property tax even if your mortgage is paid off, but I guess that's what carried interest is for.
I personally think TX is a terrible place to live, regardless of how cheap homes are and no state income tax.
Depends on the firm for sure - large cap funds like Vista (Austin), TPG (Dallas), and BDTMSD (Dallas) certainly have no pay discount (across the same groups, at least) - so the TX people are certainly coming out on top.
However, the property taxes could mess you over in TX, but even then, I think the total pay is best in TX/FL with no state income tax chewing away at another 10-13% of your paycheck. Not to mention the cost of living in SF/NY/Boston on top of all that.
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