Should I Move for a Higher Salary, or Will Taxes Eat It?
Compare the real monthly change after state taxes.
Start here
If you ever wondered whether a higher salary actually changes your monthly life, you are not alone.
The belief vs the reality
The common belief is a higher salary always means more take-home. The reality is state taxes and deductions can shrink the monthly gain.
Translate it into monthly numbers
- Convert both salaries to net monthly pay.
- Apply the state tax impact to each option.
- Compare the net monthly change side by side.
Mental model
New take-home minus current take-home equals real monthly change.
Moment of clarity
Here is what actually matters: the net monthly change after taxes.
What to do next
Compare net monthly change after taxes before deciding.
Related calculators
This is where guessing stops and numbers start.
Key sections in this guide
Convert both salaries to net monthly pay
- Net pay is what funds your month, not the headline salary.
Apply the state tax impact
- State taxes can shrink the monthly gain more than expected.
Compare the net monthly change
- The difference tells you if the move improves your month.
Replace guesses with real numbers
- Use the calculators to see the net change before deciding.
FAQ
Does this include cost of living?
No. This guide focuses on tax impact and take-home. Cost of living is a separate step.
What about local or city taxes?
Local taxes can matter. Include them if they apply to your move.
How do benefits change take-home?
Different health or retirement plans can change your net monthly pay.
Should I compare monthly or annual numbers?
Monthly numbers make it easier to compare to your real expenses.
More from Life Changes and Tradeoffs
More guides in this category are coming soon.