Re:VMware Cuts Pay for Remote Workers Fleeing Silicon Valley
by gnicholas on Saturday September 12, 2020 @01:19AM
(#24450035)
The nuance is this: the data looks at total state taxes paid as a percent of personal income. So if you're earning an average OH salary of say $90k, and your total taxes are around $8k, that comes to 9% or whatever.
But now imagine your an SV engineer who relocates to OH and is making $200k (after COLA reduction). Your personal state income tax rate tops out at 4.7%, which is perhaps 6% lower than what you were paying in CA.
Also, you have a mansion that's 3x the size of anything you could afford in SV, and it only costs $300k. So your property tax is under $6k (versus $20k in SV).
So while the tax burden on average might be higher in OH, the tax burden for high earners would be much less of a percentage of income.
But now imagine your an SV engineer who relocates to OH and is making $200k (after COLA reduction). Your personal state income tax rate tops out at 4.7%, which is perhaps 6% lower than what you were paying in CA.
Also, you have a mansion that's 3x the size of anything you could afford in SV, and it only costs $300k. So your property tax is under $6k (versus $20k in SV).
So while the tax burden on average might be higher in OH, the tax burden for high earners would be much less of a percentage of income.