Tax Rates For Major US Financial Cities?

New York City 2.907%-3.648%
New York 4%-8.82%
(more tax rates at the bottom of the post)

Do you all consider income taxes of different cities when considering living there? I've read before that when city, state, and federal taxes are calculated for a wealthy New Yorker, their tax burden is about on par with London.

Another thing that's important are the taxes that the above list doesn't consider: sales tax, property tax, etc. For example, Texas is known for its considerable property taxes. However, I doubt many people on here (I could be wrong) would want to BUY a house/apartment before 30.

Another thought I had is with Chicago. In 2015 the Illinois state tax went from 5.25% to 3.75% even though it has a massive pension problem and Chicago's GO debt just got downgraded to junk status. Can anyone think of a reason why Chicago can't marginally raise taxes, and perhaps to mimic a NYC city tax to help raise revenue? The only thing I can think of is that the wealthy in New York can afford the taxes, and will pay them because it's New York City. Chicago isn't as wealthy or desirable, maybe causing people to leave.

Chicago 0%
Illinois 3.75%

San Francisco 1.5%
California 2-13.3%

Houston 0%
Texas 0%

These figures could be outdated or just wrong - I only spent a few minutes gathering them.

Comments (15)

Jul 2, 2015

Philadelphia Wage Tax:
3.9102% (Resident - live in the city)
3.4828% (Non-Resident - live outside but work in the city)

The reason why many "Philly" companies set up right outside city limits. It sucks.

Jul 2, 2015

Wow. I didn't realize it was that much. I always thought all of the office buildings on City Line in Bala were amusing and a giant FU to the city wage tax. Then how Conshy went from nothing 15 years ago to a decent office market. And how Cira went up next to 30th St to attract NYC/DC companies and the Market St investment and law firms went in. And how they have to give giant tax concessions to Comcast and Blue Cross to stay. You'd think the city would eventually get the hint...

To the OP's point, CA is really the worst. I forget the exact numbers but over $200/250k and the state tax is massive. I was exploring moving back there a couple of years ago and it's a big hit on monthly ordinary income. As in once you get to mid 6 figures the state tax becomes a decent mortgage payment and then tag 1.5% SF city tax. I'd have to consider taking that into account if I were negotiating a comp package there. http://www.adp.com/tools-and-resources/calculators...

Jul 7, 2015

It really does suck that California has become a Communist state. San Diego is truly my favorite city in the world, but I can't live there until I have enough money stock piled to live in Puerto Rico 183 days per year and not pay taxes.

Jul 15, 2015
Dingdong08:

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p>Wow. I didn't realize it was that much. I always thought all of the office buildings on City Line in Bala were amusing and a giant FU to the city wage tax. Then how Conshy went from nothing 15 years ago to a decent office market. And how Cira went up next to 30th St to attract NYC/DC companies and the Market St investment and law firms went in. And how they have to give giant tax concessions to Comcast and Blue Cross to stay. You'd think the city would eventually get the hint...

Just to update you, Dow Chemical just announced today they are moving the last of their employees out of the city and into Collegeville. Liberal policy at work.

Jul 4, 2015

I think all the young guys should all take note of these tax numbers next time they clamor to be placed in TMT. #TradeEnergyMinimizeTaxes

Jul 5, 2015

Philly taxes are a joke. Zero reason why anyone should pay 4 percent for that city.

Texas is awesome, but you dont really have a city experience. I'd say chicago is the best of both worlds. All in pretty cheap and you get all yhe convieniences of a city.

Best Response
Jul 5, 2015

Houston, the 4th largest city in the US, most racially and ethnically diverse city in the US, most parks of any major metropolitan area,19 museums, and multiple professional sports teams, isn't a city experience?

And people TALK a lot about property taxes in Texas, but when I looked into it I didn't see much of a difference. On a mobile traveling now so I can't provide much color on this at the moment.

But yes, people consider taxes when deciding on where to go. Its importance may pale in comparison to being close to family, career prospects, and maybe even weather, but people consider it when they consider cost of living.

And no, I don't live in Houston.

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Jul 6, 2015

Plenty of big city things to do in Houston, but the sprawl prevents a really urban living environment. It's like living in a giant suburb.

Jul 6, 2015

That's fair

Jul 7, 2015
the_stig:

Plenty of big city things to do in Houston, but the sprawl prevents a really urban living environment. It's like living in a giant suburb.

I was going to say the same thing.....was actually talking to a buddy who just went to visit his gf there and he said it's like there are 4 different downtowns because it's so spread out.

Jul 5, 2015

I went and found this:
http://wallethub.com/edu/states-with-the-highest-a...
Texas is at near the worst at 3327 per year. Illinois is the highest at 3939. Average is 2089.

Id pay an extra grand or so a year to save 6-15% of income.

Jul 5, 2015

Not exactly a major finance hub, but can't complain about Miami's rates:

City: 0%
State: 0%

Jul 8, 2015

Boston:
0% for the city
5.15% for state income tax.
Sales tax is 6.25

Overall, I don't think MA is too bad when you look at Philly and CA.

Jul 8, 2015
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