What You Actually Take Home From a $200,000 Salary in Every State
If you earn a $200,000 salary, you’re in the top 10% of earners in the United States. Of course, all of that won’t show up in your bank account. Taxes will take a big bite out of your take-home pay. Since state income taxes can vary wildly depending on where you live, the amount of that $200,000 you get to actually put in your pocket changes from state to state.
GOBankingRates used data from the Tax Foundation and calculations using SmartAsset’s paycheck calculator to see which states offered the highest take-home pay rates. Some states take out bigger chunks than others, so it’s important to know exactly how much take-home pay you can expect in every state if you’re taking home $200,000.
Last updated: October 7, 2020
Alabama
Take-home pay: $138,336
Alabama’s state income tax rate is moderate, meaning you’ll keep a little over $138,000 on your salary of $200,000. The national average take-home rate is $136,700.04, so Alabama ranks just slightly above-average in the take-home-pay department. It also offers the lowest property taxes in the country.
Find Out: How To Avoid Paying Taxes Legally — and 11 Crazy Ways People Have Done It
Alaska
Take-home pay: $145,764
If you want to keep a big chunk of your $200,000 salary, consider living in Alaska. With no state income tax, Alaskans earning $200,000 can expect to bring home $145,764, among the highest take-home rates in the nation. The state also ranks as the most tax-friendly state for retirees.
Arizona
Take-home pay: $140,562
Residents in the Valley of the Sun enjoy a graduated state income tax system that helps keep overall tax rates low. The top state income tax rate of 4.54% only applies to single filers earning at least $155,159, or joint filers earning $310,317 or more. The state also offers decent standard deductions and personal exemptions to taxpayers.
Arkansas
Take-home pay: $133,280
Even though Arkansas residents overall earn less than the average American income, those who take home a high salary face a steep state income tax rate. Although the rate is graduated, it peaks at a high 6.9% on incomes as low as $35,099 for both single or joint filers.
California
Take-home pay: $127,819
True to its reputation as a high-tax state, California slaps the highest state income tax rate in the nation on its residents, at 13.3%. Although this rate only applies to single filers with at least $1,000,000 in income — or joint filers earning at least $1,074,996 — both single and joint filers earning $200,000 in the Golden State face a steep rate of 9.3%.
Colorado
Take-home pay: $136,996
Colorado residents earning $200,000 can expect to take home almost the exact average for the country as a whole. Workers in the Centennial State pay a flat 4.63% income tax on all of their taxable income, regardless of the amount.
Connecticut
Take-home pay: $134,712
Although Connecticut has a high top-end state income tax rate of 6.99%, it only applies on single incomes of $500,000-plus or joint incomes of at least $1 million. Residents earning $200,000 still face a 6.5% or 6% rate, respectively, which is enough to bring the take-home pay down to slightly below the national average. On the plus side, the state boasts the highest average family income in the country.
Delaware
Take-home pay: $134,103
Delaware’s graduated state income tax rate jumps up quickly, peaking out at 6.6% for both single and joint filers earning at least $60,000. This large tax bite is enough to drag Delaware down to the bottom-third when it comes to ranking take-home pay.
Florida
Take-home pay: $145,962
The Sunshine State takes the crown when it comes to take-home pay, with residents earning $200,000 keeping a whopping $145,962, tops in the nation. Although the state has to share this title with eight others, it’s not likely to lose its ranking as long as it remains free of state income tax.
Georgia
Take-home pay: $134,452
High earners in Georgia don’t get to keep as much of their pay as the average American due to the rapidly graduated state tax schedule. The top state income tax rate of 6% kicks in after just $7,000 in earnings for single filers, or $10,000 for joint filers.
Hawaii
Take-home pay: $130,553
Living in paradise carries a high cost. In addition to paying more for basic commodities from food to fuel, residents of the great state of Hawaii face the second-highest tax rate in the country at 11 percent. Workers earning $200,000 pay the full 11% rate if they are single filers, while the rate is a still-high 8.25% for joint filers.
Idaho
Take-home pay: $133,488
Idaho residents earning top salaries get to keep less of it than the average American due to the high state tax rates. At 7.4%, Idaho has one of the highest state tax rates in the country, and it kicks in at a low income of just $11,043 for a single filer, or $22,086 for a joint filer.
Illinois
Take-home pay: $136,169
If you’re a high earner in Illinois, your take-home pay will be right about at the national average. The state income tax rate in Illinois is a flat 4.95%, regardless of income, which isn’t particularly onerous overall.
Indiana
Take-home pay: $136,052
Indiana has a moderate flat tax of just 3.23% on all residents, regardless of income. High earners pulling down $200,000 per year can expect to take home $136,052, almost identical to the national average take-home pay of $136,700.04.
Iowa
Take-home pay: $133,624
Iowa residents on the short end of the income scale enjoy an extremely low state income tax rate of just 0.36%. Unfortunately, high earners bear the brunt of one of the higher state tax rates in the country; both single and joint filers earning $71,910 or more must fork over 8.98% of their income.
Kansas
Take-home pay: $135,318
If you’re driving cross-country, Kansas is just about in the middle of the road — and the same is true when it comes to its total tax rate for high earners. The state’s top 5.7% kicks in at $30,000 for single filers, and $60,000 for joint filers.
Kentucky
Take-home pay: $134,121
The land of bluegrass, thoroughbreds and bourbon carries some above-average tax rates. Graduated state tax income rates hit 5.8% on just $8,000 of income, regardless of filing status, while the top rate of 6% applies on both single and joint incomes of $75,000 or more.
Louisiana
Take-home pay: $136,006
High-income workers in the Bayou State take home about the national average. A moderate top state income tax rate of 6% kicks in at the $50,000 and $100,000 income level for single and joint filers, respectively. Take-home pay gets knocked down a bit because there is no standard deduction available for state filers.
Maine
Take-home pay: $132,365
A relatively high state income tax deduction isn’t enough to offset Maine’s high tax rates when it comes to take-home pay. The rate starts at a high 5.8% on the first dollar of income, and it peaks quickly at 7.15% on incomes of just $50,750 for single filers, or $101,550 for joint filers.
Maryland
Take-home pay: $129,952
Taxpayers might burst out the state song of “Maryland, My Maryland” when they first see their tax bill from the state. Residents earning $200,000 take home the third-lowest net pay in the country, well below the national average of $136,700.04, thanks in part to low state deductions and exemptions and an income tax rate of 5.25% to 5.5%, depending on filing status.
Read: What Can I Write Off on My Taxes? A Guide to Tax Deductions
Massachusetts
Take-home pay: $136,088
Massachusetts has a reputation as being a high-tax state, but the take-home pay for a $200,000 earner is only slightly below the national average of $136,700.04. A flat state income tax rate of 5.1% applies to all incomes, meaning every dollar of a $200,000 earner’s income is fair game.
Michigan
Take-home pay: $137,634
High-income Michigan residents take home more of their pay than the average American thanks to a flat 4.25% state income tax rate. Unlike in many other states, this rate, while applying to the first dollar of income, doesn’t increase along with a resident’s income, keeping the overall tax bill fairly low for high earners.
Minnesota
Take-home pay: $131,223
Minnesotans are among the fittest Americans according to numerous studies, and their take-home checks are a bit lean as well. Residents earning $200,000 take home the fifth-lowest net pay in the country, more than $5,000 below the national average. A high rate of 5.35% hits all income, with the top rate of 9.85% applying to single incomes of $160,020 and joint incomes of $266,700.
Mississippi
Take-home pay: $136,557
Mississippi take-home pay rates are right about average on a national basis. Although the top state income tax rate kicks in on incomes of just $10,000 for both single and joint filers, the rate tops out at just 5%. A decent personal exemption of $6,000 for singles and $12,000 for joint filers helps lower the net tax rate as well.
Missouri
Take-home pay: $135,387
Residents of the Show-Me State might want to shout, “Show me the money” when looking at their take-home pay rates. For $200,000 earners, the net take-home pay of $135,387 is below the national average. The state’s top income tax rate of 5.9% kicks in after just $9,072 of income for both single and joint filers.
Montana
Take-home pay: $134,029
Montana income tax rates rise rapidly, peaking at a high 6.9% on just $17,900 of income, whether you’re a single or joint filer. Those fortunate enough to earn $200,000 will have to fork over a significant chunk of that income to the state government, resulting in a well below-average net take-home pay.
Nebraska
Take-home pay: $133,300
There’s nothing middle-America about Nebraska’s tax rates, which hit 6.84% for single filers earning $30,420 and joint filers earning double that amount, or $60,840. Taxes are enough to drag down the take-home pay for a $200,000 earner to the bottom quarter of the country.
Nevada
Take-home pay: $145,962
As one of the few states without an income tax, Nevada residents earning $200,000 take home the highest net pay in the country, tied with eight other states.
New Hampshire
Take-home pay: $145,962
New Hampshire charges a 5% tax rate on interest and dividend income, but all other income is tax-free. As a result, New Hampshire is one of the nine states that has the highest take-home pay on an income of $200,000, at $145,962. This is more than $9,000 above the national average.
New Jersey
Take-home pay: $134,114
New Jersey has lower overall tax rates than its famous neighbor, New York, but not by much. In fact, New Jersey’s top state income tax rate of 8.97% is actually higher than New York’s. However, tax rates in the lower brackets are not as high, bringing the state’s overall tax liability down a notch. Things are not as rosy for property owners, as the state is saddled with the highest property taxes in the nation.
New Mexico
Take-home pay: $136,818
New Mexico has a fairly low state income tax rate, which peaks at 4.9%. However, that rate applies to single incomes of $16,000 and joint incomes of $24,000, meaning those earning $200,000 can have a decent overall state income tax bill. Take-home pay for high earners in New Mexico is about average.
New York
Take-home pay: $132,729
New York is notorious for having high state and local income taxes, and the rumor isn’t that far from reality. New York ranks in the bottom 10 when it comes to take-home pay for those earning at least $200,000. Although the state’s top rate of 8.82% only applies to single incomes of at least $1,077,550 and joint incomes of $2,155,350 or more, a $200,000 earner of either filing status will still be in the high 6.57% bracket.
North Carolina
Take-home pay: $135,394
State taxes are straightforward in North Carolina. A flat rate of 5.499% applies to all incomes. This means that someone earning $200,000 in North Carolina must pay tax at that rate on all of their income, resulting in a higher-than-average overall tax bill.
North Dakota
Take-home pay: $142,157
Of the 41 states that have a state income tax, North Dakota ranks No. 1 on the list when it comes to net take-home pay for $200,000 earners. With a slowly graduated, low-rate tax system that only tops out at 2.9% for those making at least $424,950, state tax obligations remain low even for the highest earners.
Ohio
Take-home pay: $136,986
Take-home pay is in the top-third in Ohio for top earners, where a $200,000 earner can expect to take home about $286 more than the average American peer at that income level. Ohioans earning $200,000 will be in the 4.597% state income tax bracket, slightly below the top rate of 4.997%.
Oklahoma
Take-home pay: $136,518
Oklahoma’s graduated state income tax schedule reaches its top rate of 5% relatively quickly, at income levels of just $7,200 for singles and $12,200 for joint filers. Standard deductions and personal exemptions help take some of the bite out of that rate, resulting in an about-average net take-home pay for $200,000 earners.
Oregon
Take-home pay: $127,720
Perhaps surprisingly, Oregon residents earning $200,000 have the lowest take-home pay amount in the nation, nearly $9,000 below the national average. A combination of low deductions and personal exemptions, along with a high tax rate, are enough to do the trick. A very high rate of 9% kicks in at just $8,700 in earnings for a single filer, and $17,400 for a joint filer, with the top rate of 9.9% hitting single filers at just $125,000 in income.
Pennsylvania
Take-home pay: $136,702
Residents of the Keystone State are right on the nose when it comes to take-home pay for $200,000 earners. Take-home pay in the state is within $2 of the national average. A flat tax rate of 3.07% helps keep net take-home pay very close to average.
Rhode Island
Take-home pay: $135,667
Although Rhode Island offers fairly generous standard deductions and personal exemptions, those protections start phasing out at $193,600 in income. The state’s high tax rates bring down net take-home pay below average. Residents earning $200,000 face a tax rate of 5.99% on amounts over $149,150, whether filing singly or jointly.
South Carolina
Take-home pay: $132,672
South Carolina has a fairly high standard deduction, but its graduated tax system rises quickly to a 7% rate on incomes of just $14,860 for both single and joint filers. The end result is a net take-home pay for $200,000 earners that falls more than $4,000 below the national average.
Did You Know? Here’s What the Average American Makes in Every State
South Dakota
Take-home pay: $145,962
South Dakota is one of the nine lucky states that doesn’t have a state income tax. As a result, it’s tied for the top spot in terms of take-home pay for a $200,000 earner. Unlike some other states, there’s no separate tax on dividends or interest in South Dakota, making it a true panacea when it comes to state taxation.
Tennessee
Take-home pay: $145,962
Tennessee does have a 3% flat tax on interest and dividend income, but for those earning $200,000 in salary or wages, the state is a tax haven. With no state income tax, high earners keep more of what they earn, taking home more than $9,000 above the national average.
Texas
Take-home pay: $145,962
The Lone Star State reigns supreme when it comes to state income tax, since it has none. Just like its eight compatriots on this list, no state income taxes equates to higher take-home pay. Texas residents earning $200,000 can expect the highest net take-home pay in the country, losing just $54,038 to federal income tax, FICA tax and other withholdings.
Utah
Take-home pay: $136,062
Utah makes it simple when it comes to state income tax. Under the state’s flat tax system, 5% of every dollar is handed over to the state treasurer, with no regard for income level or filing status. The net result is that a $200,000 earner in Utah can expect to take home just slightly less than the national average.
Vermont
Take-home pay: $133,002
Vermont is one of the most highly taxed states in the nation, with $200,000 earners expected to take home about $3,700 less than the national average. The state’s graduated income tax climbs to one of the highest rates in the country, at 8.95% for incomes of $416,650 or more. Those earning $200,000 pay high rates of 8.8% for single filers, or 7.8% for joint filers.
Virginia
Take-home pay: $134,945
Virginia’s state income tax rate starts out low at 2%, but it rapidly jumps to 5.75% for incomes of just $17,000, regardless of filing status. The net result for $200,000 earners is a well below-average take-home pay rate.
Washington
Take-home pay: $145,962
Washington is one of the nine states in the country without a state income tax. The end result is predictable — Washington is in a nine-way tie for the highest net take-home pay for a $200,000 earner.
West Virginia
Take-home pay: $134,192
West Virginia has one of the lowest per-capita incomes in the country, but that doesn’t stop the state from having one aggressive tax structure. Incomes of just $60,000 for both singles and joint filers are taxed at the top rate of 6.5%, and there is no standard deduction to reduce the taxable amount. The result is a net take-home pay about $2,600 below the national average for those earning $200,000.
Wisconsin
Take-home pay: $133,738
Wisconsin’s top tax rate of 7.65% only kicks in for very high incomes: $247,350 for singles and $329,810 for joint filers. However, those earning $200,000 still face a high rate of 6.27%, which is enough to drag down the state’s net take-home pay figure. The state’s relatively high standard deduction is of no help to high earners, as it phases out to zero long before the $200,000 income level.
Wyoming
Take-home pay: $145,962
Wyoming is famous for its wide-open plains, its sense of individuality and the freedom it gives to its resident taxpayers. With no state income tax, those earning $200,000 are free to keep a whopping $145,962, the best take-home rate in the nation. Wyoming is also one of the best states in the nation for retirees.
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Methodology: GOBankingRates identified the amount that an individual making a salary of $200,000 will take home by looking at the biweekly, monthly and annual amount after accounting for taxes. Tax data was sourced from Tax Foundation for the 2018 tax season, and calculations utilized SmartAsset’s paycheck calculator, sourced January 2019. Data is accurate as of Feb. 4, 2019, and is subject to change.
This article originally appeared on GOBankingRates.com: What You Actually Take Home From a $200,000 Salary in Every State
