can anyone kindly let me know what net income I can get each month after withholding tax in New York City assuming 5%go to 401K contribution.
is this salary allow me to save a bit if I spend $2400 on rent.
What NET income CAN u get? Or what GROSS income do u NEED?
what is monthly paid I can get after 5% 401k and withholding tax, is this pay allow one person to live in NY with bit saving left.
We have no idea what your salary is, so no idea after withholding what you would have left…
Hey @ratmomvsdog Can I afford to buy a new car if my house payment is $2500 per month? What if I’m also putting money into an IRA?
Can I afford the new car?
Also, my sister got a new cell phone. Can you tell me what the new number is?
No one can tell you what your net salary will be unless they first know what your gross salary is, and whether you are single or married, and how many kids you have. Here are taxes rates for single people. The amount of your tax will also depend on your citizenship/residency status.
**Tax Treaties **
Residents of certain countries may be eligible to claim a tax treaty to exempt all, or part, of their wages from U.S. federal income tax withholding. NY State also honors federal tax treaties. Tax treaties for F-1 and J-1 students generally exempt a limited amount of wages, from $2000-$5000, from federal income tax.
FICA Taxes
Non-resident aliens on F-1 and J-1 visas are exempt from paying FICA (Social Security and Medicare) taxes until they become residents for tax purposes. F-1 and J-1 students generally maintain non-resident status for their first 5 calendar years in the U.S. Students also fall under the student FICA exemption.
US cititizen/residents, otherwise, have to pay FICA (Social Security and Medicare) taxes. Here are the tax rates for Social Security & Medicare:
Social Security withholding, 2015
6.2% Social Security tax on the first $118,500 of employee wages (maximum tax is $7,347)
Medicare withholding, 2015
1.45% Medicare tax on the first $200,000 of employee wages
2.35% Medicare tax on all employee wages in excess of $200,000
Income taxes: Federal, state, local
U.S. Federal income tax, Single filers, 2015
10%: $0 to $9,225
15%: $9,225 to $37,450
25%: $37,450 to $90,750
28%: $90,750 to $189,300
33%: $189,300 to $411,500
35%: $411,500 to $413,200
39.6%: $413,200+
New York State Tax and NYC Resident Tax
http://www.tax.ny.gov/pdf/current_forms/it/it201i_nys_tax_table.pdf
New York City is one of the few cities in the U.S. that have a personal income tax. New York City income tax is paid on your New York State income tax return.
For a new job fresh out of college, assume ~70% net for a quick-n-dirty rough calculation of take-home pay.
So, for ($2400/mo rent + $1000/mo expenses) x 12 months = $40,800/year net. If you divide that by 70%, then that equals $58,285/year gross.
I think I understand the confusion over your initial post.
I see from your previous posts that you are located in Asia. In Asia, income/salary is often stated in NET terms. In the US, income/salary is typically stated in GROSS terms.
When someone in the US says they earn 100k a year, that means they are actually taking home anywhere from $65k - $85k, depending on what state/city they live in, whether they are married/single, and how many kids they have, and whether that 100k is earned via salary or via capital gains.
Just to be clear, using your numbers in post #6, as an example,
GROSS = $100K
NET INCOME = $65K - $85K.
In addition, the number on the last line of the first page of 1040 Tax Return Form is AGI, Adjusted Gross Income. In many years, the major “down adjustment” we had was due to the amount of pretax deductible tIRA contribution for my wife in that year. The “up adjustment” are mainly the investment/interest income on the bank saving/CD, non-retirement accounts, the pension income, I think.
sorry, sorry, part of my text has been cut out. I mean with 110k salary, what is monthly income I can get after 5% 401k and withholding tax , is this pay allow one person to live in NY with bit saving left
See the calculation at the bottom of post #5. A ~60k gross income should cover $2400/mo + $1000/mo expenses ($1000/month means eating a lot of ramen rather than Kobe beef, and doing a lot of walking rather than taking taxis). Therefore, I would expect a 110k salary to leave you some discretionary net income for savings and some Kobe beef.
401k is not mandatory. You choose whether or not to set aside some of your income pretax for the future when you retire, but you do not have to contribute. And yes I think one could live on that salary in NYC.
If you earn $100,000 a year, and are single, you should be able to live in NYC. However, you won’t be living in a luxury apartment, driving a swanky car, and eating at 5 star restaurants every night. There are tons of taxes for residents in NY. Take that into consideration as well.
Here is a handy calculator at paycheckcity.com
Health insurance is also an expensive item in a person’s budget.
What will your immigration status be? Certain retirement vehicles are only available to US citizens and legal permanent residents. When you are working out your budget, you need to know if you will even be eligible to put money into a 401k.
Thanks Happymomof1, I am on working visa.
I read a lot comments online, it look like 110k is below average salary in NYC and it is very hard to have money left.
110k is MORE THAN DOUBLE the median income ($52k in 2014) in NYC.
Where do you plan to live? What sort of lifestyle do you plan to have? What kind of job will you be doing? All of these will play into your lifestyle with a certain income. If you want to buy a $2 Million co-op, no, you probably won’t be able to do that. Will you be able to rent a decent apartment on that income…probably. Will you be able to eat at five star restaurants and go to a Broadway show twice a week…probably not. Will there be ample entertainment for those who wish to economize…yes.
And you know…there are plenty of people who work in Manhattan who don’t live in Manhattan…sometimes for economic reasons.
My son is in a nice (small) studio in Manhattan for $1875 rent. He has no car, takes the subway, doesn’t eat out a lot but buys a lot of frozen, prepared meals at the grocery store, takes his laundry somewhere to be done for him, and has money left over each month. His salary is under $100,000. You should be fine at $110,000.
^ Will a house hold of two young adults be fine with a combined annual income (before tax) at $100,000 in NYC?
On the other coast, in the Bay Area, as long as you do not live in a super expensive area, two people with a $100,000 income should be fine. But I always thought the cost of living in NYC is higher. (Dare I to say: older and not as clean.)