New York vs Washington: Which State Keeps More Money in Your Pocket?
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 Annual variance runs about $7,497 at $85,000 when comparing 8.82% versus no income tax. Washington maintains appeal through no income tax. finance pros demographics lean Washington for financial reasons; outdoor lovers sectors prefer New York despite tax differential.
The tax picture between New York and Washington breaks down like this: 8.82% versus no income tax. For someone making $85,000, we're talking about $7,497 in annual difference. That's significant, but it's worth looking at what else each state brings to the table.
🔑 Key Differences
- **State income tax**: New York at 8.82% vs Washington at no income tax
- **Annual savings** (on $85,000): Washington saves you ~$7,497
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | New York | Washington |
|---|---|---|
| State Income Tax | 4% - 8.82% | No Income Tax Winner |
| 💰 On $40,000 Salary |
State Tax: $2,564
Take Home: $37,436
|
State Tax: $0
Take Home: $40,000
+$2,564
|
| 💰 On $60,000 Salary |
State Tax: $3,846
Take Home: $56,154
|
State Tax: $0
Take Home: $60,000
+$3,846
|
| 💰 On $100,000 Salary |
State Tax: $6,410
Take Home: $93,590
|
State Tax: $0
Take Home: $100,000
+$6,410
|
| Cost of Living | New York City ranks among the world's most expensive cities. Manhattan rent for one-bedroom apartments often exceeds $3,000 monthly, with outer boroughs requiring $2,000-2,500. Home purchases in desirable areas frequently surpass $1 million. Property taxes substantial. Sales tax reaches 8.875% in NYC. Dining, services, and general expenses all elevated. Upstate New York offers dramatically better value - Buffalo, Rochester, and Syracuse maintain housing costs 60-70% below NYC levels. | Washington costs split dramatically. Seattle metro ranks among America's most expensive - median home prices often exceed $700,000-800,000 in desirable areas. Monthly rent for decent apartments runs $2,000-3,000. Sales tax reaches 10% in Seattle. Spokane and Eastern Washington offer substantially better value. Property taxes significant. The no-income-tax advantage creates benefit, though Seattle housing costs require six-figure incomes for comfortable family living. |
Pros & Cons
New York
✓ Advantages
- Unmatched career opportunities in finance, media, and technology
- World-class public transportation in NYC reduces car costs
- Cultural amenities and entertainment unavailable elsewhere
- Strong worker protections and employment rights
- Healthcare and education systems among nation's best
⚠ Considerations
- Combined state and city income taxes can reach 14% or higher
- Extremely high housing costs especially in NYC
- Property taxes among highest in America
- Sales tax reaches 8.875% in New York City
- High costs extend beyond rent to groceries and services
Washington
✓ Advantages
- No state income tax provides major advantage
- Strong technology and aerospace sectors
- Beautiful natural scenery and outdoor recreation
- No state estate or inheritance tax
- High minimum wage in many cities
⚠ Considerations
- Very high cost of living in Seattle area
- High sales tax (often 10%+ in Seattle)
- Rainy weather for much of the year
- Traffic congestion severe in metro areas
- Property taxes offset lack of income tax
Bottom Line
Washington saves you roughly $7,497 annually at $85,000, which adds up over time. New York keeps drawing people despite the tax premium, largely due to no income tax. You'll find finance pros gravitating toward Washington, while outdoor lovers often decide New York's advantages justify the cost.📢 Share This Comparison
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