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General Category => General Discussion => Topic started by: theking on June 14, 2023, 08:08:48 PM
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People making $250K a year in Portland pay more than $100K in taxes — here are the top 5 US cities where Uncle Sam hits high earners the hardest
An annual income of $250,000 will put you firmly in the top 10% of earners in the U.S., but in some cities your purchasing power would be less than half of that figure due to taxes and the cost of living.
High-income earners in Portland, Oregon, are penalized the most in taxes when jumping from $100,000 in salary to $250,000, according to a new study by SmartAsset, a consumer-focused financial information provider.
People making $250,000 a year in Portland effectively pay about 41.1%, or at least $102,750, back in taxes, the study reveals. When adjusted for the local cost of living in the City of Roses, their purchasing power drops to $120,542.
Portland, however, is far more affordable compared to metropolitan hubs like New York City and San Francisco, where high income earners also face heavy tax hits but much steeper living costs.
Here are the top five U.S. cities where Uncle Sam hits high earners the hardest — and what you can do about it if you fall into that tax bracket.
Cities with the highest tax rates
On average, people making $250,000 per year in the 76 largest cities in the U.S. pay about 34% in taxes, according to the SmartAsset study.
Meanwhile, taxpayers who make $100,000 in the same 76 cities are subject to a tax rate that’s nearly five percentage points lower at about 29.3%.
The five cities with the highest tax rates for $250,000 earners are:
Baltimore: 41.3%
Portland: 41.1%
New York: 39.5%
San Francisco: 39.5%
Honolulu: 38.5%
Portland was rated the least favorable city for high income earners because the tax rate spikes from 33.6% for those earning a $100,000 salary to 41.1% for those earning a $250,000 salary — a 7.5% jump and the highest increase in taxes between these salary levels in the 76 cities.