Effective tax rate?

Just wondering what you guys all pay total in taxes as a percentage of your income, and what your all in income is as well (IB analysts). Especially interested in Houston and Chicago, as I have offers (or am anticipating offers) in those cities as well as NYC. Money isn't a deciding factor but it would be nice to have some cash in the bank after a couple years. No state income tax in TX would be nice...

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Aug 29, 2014
jackson1:

Just wondering what you guys all pay total in taxes as a percentage of your income (salary + bonus), and what your all in income is as well (IB analysts). Especially interested in Houston and Chicago, as I have offers (or am anticipating offers) in those cities as well as NYC. Money isn't a deciding factor but it would be nice to have some cash in the bank after a couple years. No state income tax in TX would be nice...

Aug 29, 2014

I'd say 35% is about right... you're looking at about 25% in federal taxes. Payroll taxes are around 6%, and I don't know what state taxes are in NY.

Aug 29, 2014

70k base, paid every 2 weeks, get around 1870 ish.

Aug 29, 2014

1870ish, is that before you take out 401k, insurance etc? If you do that, wont it skew the number?

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Aug 29, 2014

1) Although your salary is $70,000, the first year you only work HALF a year, so your effective federal tax rate will be a lot lower than if you had made $70,000 during that calendar year. You are still in the 25% tax bracket, true. However, If you didn't work while in school, get a $10,000 signing bonus and make $35,000 (half of your yearly $70,000 salary), your EFFECTIVE FEDERAL TAX RATE IS ABOUT 10.5% (http://www.dinkytown.net/java/TaxMargin.html)
2) NYC taxes should be around 3% (http://www.nyc.gov/html/dof/html/pdf/interest_rate...)
3) Taxes during your second "caledar" year (that is, the January during your first year or the second half of your first year) will be a lot higher. If you make $70,000 (assuming no bonus), you'll be in the 25% tax bracket and your effective federal tax rate will be about 15%. But if you take home a 50k bonus, you'll be in the 28% tax bracket and your effective federal tax rate will be about 20.5%.

Aug 29, 2014
Aug 29, 2014

my friend's in nyc at a bb and his experience is similar to 1styearbanker's.

Aug 29, 2014

You also have to consider that the first year you'll get a few thousand dollars of taxes back (reason: you work half a year, make 35+10k, but your taxes are withheld based on your 70k salary). After the first year you won't probably get anything back.

Aug 29, 2014
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