Even though the following is true you still have to weigh, your job, your business, your family, your friends etc. in whatever state you are in right now. So, in the end quality of life might be the most important of all these things to consider first.
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Wed, Aug 20, 2014, 1:47AM EDT - US Markets open in 7 hrs and 43 mins
Begin quote:
Wed, Aug 20, 2014, 1:47AM EDT - US Markets open in 7 hrs and 43 mins
Here's how much $100 is worth in your state
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Using recently released data from the Bureau of Economic Analysis, the Tax Foundation was able to show exactly how the varying prices of goods, housing and income taxes in each state can impact consumers’ purchasing power.
Southerners and Midwesterners have a serious edge over those along the East and West Coasts. A hundred bucks goes the furthest in Mississippi, where $100 will buy you what would cost $115.74 in another state that's closer to the national average. As the Tax Foundation puts it, Missippians are about 15% richer than their nominal incomes suggest. The next low-price states are Arkansas ($114.16), Missouri ($113.51), and Alabama ($113.51). Meanwhile, $100 would only be worth $84.60 in the District of Columbia, the priciest state, $85.32 in Hawaii, $86.66 in New York and $87.64 in nearby New Jersey.
It’s no surprise that the states where people earn
more tend to have higher prices for goods, services, and housing. High
income-tax rates can also limit the the purchasing power of workers,
depending on the state they live in. The state income tax rate in
Kentucky is among the lowest in the nation at 6%. Comparatively, in
Washington, D.C., the income tax rate is 8.95%. In part due to lower
income taxes, a hundred-dollar bill in Kentucky is worth 33% more than it is in D.C. Someone
earning $40,000 in Kentucky would need to earn at least $53,000 in
Washington, D.C. just to maintain the same standard of living.
Now you can see why retirees so often choose their
retirement destination based on tax rates. When you're on a fixed
income, the cost of living in your state can make or break your nest
egg.
Check out this map to see how income tax rates vary by state:
There are plenty of tools
available online if you're interested in seeing how your state's cost of
living compares to others. NerdWallet's cost of living calculator
lets you the compare cost of living in major U.S. cities, even
tailoring results depending on your stage in life (fresh out of college,
in retirement, raising a family).
If you're solely looking to compare salaries in different cities, Payscale's cost of living calculator might suit your needs.
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Yahoo Finance (blog)
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new map released by the Tax Foundation shows exactly how far $100 would
go in all 50 states. Using recently released data from the Bureau of
Economic Analysis, the Tax Foundation was able to show exactly how the
varying prices of goods, housing and ...
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