Moving from Texas to Minnesota

[wamer27]

Originally Posted by 2x3x29x41

Bear in mind that take-home income is a function of gross income minus tax.

Minnesota does have a state income tax. But Minnesota also has a higher average income than Texas, by a margin of more than $10,000 (MN: $74,600 - TX: $64,000).
https://www.census.gov/library/visua...ld-income.html

A married couple filing jointly would pay about $4,500 income tax on $74,600 in taxable income.
https://www.revenue.state.mn.us/minn...s-and-brackets

That after-tax income would still be more than $6,000 higher than the average Texas income. Actually, it would be more because I didn't take deductions into account; not all of that income would be taxable. Minnesota does have a somewhat higher COL (Minnesota's COL runs at about the national average, while Texas is a bit below) but the difference is not enough to eat up all that $6,000+ difference.

Of course, incomes will vary based on profession and location. But in general, even balanced with COL, you'll be earning more in Minnesota. Don't just look at the income tax %s. Those are but one component in the equation.

My step daughter is moving to Dallas next week from Mpls, she works remotely. The not having to pay state income tax here of 7.85% will net her $400 extra per month. The cost of the house they are renting is saving her hundreds per month also, compared to a worse house she has in south Mpls of similar area, size. Dallas house is actually way nicer. She doesn’t have kids, so schools mean zero. She doesn’t use any social services, so in the big reality, moving there is like getting a second job, but without actually having to work. She won’t last long there, but that’s other things. Just the cost to cost, she’s coming out way ahead there then here in her situation.