Which city has highest take home pay?

At face value cities like NYC and London appear to have the highest compensation package but you also seem to be losing c.50% of it to taxes etc.

Would somewhere like Singapore (or any other cities), which which lower compensation but lower taxes have overall a higher take home salary?

Anyone have any insights?

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Comments (18)

  • Analyst 1 in ER
Oct 13, 2021 - 4:07am

Probably HK - top marginal tax rate of 17% and no capital gain tax. Only thing is housing and owning a car is super expensive, but that's offset with cheaper (and better) food / ubers 

Oct 13, 2021 - 11:29am

Keeping to US, there is very little way to win - a vast majority of the high income jobs are in high income states. Extremely hard to arbitrage unless working remotely permanently and 100% of the time.Maybe like a top tier doctor or law firm partner in seattle? Idk - and again stupid to optimize for.A 6% difference in state taxes is not worth a 50% cut in pay - the bulk of your taxes are federal income taxes and payroll taxes which don't vary by city/state.What you CAN do: Save and invest as much as you can, so that a higher and higher % of your income y/y is from capital gains which is taxed at 15%.

Oct 13, 2021 - 12:48pm

Doctor for sure, pay is inversely related to supply of doctors in that area.  Highly specialized surgeons in rural areas typically get paid 1.5-2X what an NYC surgeon makes.

The other occupation is sales.  Typically they are on the road anyway, so they can choose to work in a low cost/tax town while making HCOL salary 

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  • Prospect in IB-M&A
Oct 13, 2021 - 11:38am

In North America - I know people in Calgary rake in cash with the COL and tax rates there

  • Intern in IB - Restr
Oct 13, 2021 - 11:50am

Can only speak for analysts at my bank but the base+bonus are exactly the same across all US offices, maybe slight discounts outside of ny/la/chi, so basically the cheapest relevant city is the answer to your question.

  • Incoming Analyst in IB-M&A
Oct 13, 2021 - 1:32pm

In US I would say anywhere in Texas but probably Houston/Austin. Large amount of front office tech/finance jobs and very low COL (this is probably more for Houston than Austin). The money goes SO MUCH further.

Oct 15, 2021 - 8:01am

Houston - I pay no state income tax, have a small COL adjustment on base salary vs ny office but with bonus that isn't adjusted it's peanuts, and just bought a fairly large house 10 mins from downtown for 1/3 of what a serviceable apt in Manhattan might cost.

Of course the weather is shit 1/3 of the year, city is prone to flooding, retarded politics… you get what you pay for I guess but overall quite nice 

  • Analyst 2 in IB - Cov
Oct 15, 2021 - 12:19pm

What was the price tag on the house? I really want to buy once but seems like anything inside the loop has absolutely skyrocketed in the past 1-2 years and I really missed out on some easy equity build by starting FT a year too late lol. 

Oct 15, 2021 - 9:10am

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