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by adventured 3007 days ago
Your premise is correct in regards to the salary. However, you're going to pay a fair bit on that $160k in the US. The US has one of the most progressive income tax policies in the developed world. The median full-time income in the US is about $50,000; at that level, you'll pay a 8.7% (2018) effective federal income tax rate (2018), however FICA (Social Security etc) and state taxes will typically get you for another 12-14% or so. At $160,000 your effective federal income rate jumps to 18.6% (for 2018).

This is Federal + State + FICA, on $160,000:

Boston: $48,000; Los Angeles & San Francisco: $52,000; Boise, Idaho: $51,000; Seattle: $40,000 (Washington has no state income tax); Miami FL: $40,000; New York: $55,000

Basically you're looking at 25% to 34% total. Your healthcare will also likely be covered by your employer, external to the salary, and obviously we're not counting any stock compensation.

1 comments

With all the taxes in Germany together you're also paying around 42.5% of your 80K salary on taxes. Income tax is not the only tax we have.
I have no doubt about that. I'm merely pointing out in response to the parent, that you're going to pay a fair bit on a $160,000 style income in the US, not 10% style rates.