The amount of money you have left at the end of the month are impacted by two pretty large factors: cost of living and taxes. Dollar value of salaries can mean very different things depending on where in the US you are in. If international, it could mean difference between minimum wage in the US and living like a king at a low-cost-of-living country.
So, what does $75,000 salary mean in New York City? Some of you may be interested, especially if you’re considering moving here. So I’m here to bring you the tea… 🍵
Let’s break down my situation:
- Salary: $75,000 a year for Full-Time employment as exempt employee
- Full benefits: health, dental, life, vision, HSA, 401k
- Fully funding my 401k and HSA
- Living and working in New York City, New York (subjects to all ze taxes)
- 2 paychecks a month (15th and last day of the month) for 24 total paychecks a year
- Get $50/mo of cellphone stipend (that is also taxed)
Okie dokie. Now let’s get into the numbers!
Bi-Weekly Gross Pay: $3,150.00
- Taxes: $637.49
- Benefits: $194.86
- Retirement (401k): $787.50
- Take Home: $1,530.15
This means that in a month, my Gross Pay is $6,300, and my Take Home is $3,060. As you can see from the pie chart above, my take home is 48.58% of my gross.
Let’s break them down further…
Bi-Weekly Taxes: $637.49
Here’s a breakdown of my bi-weekly taxes on $3,1500 after taking out my benefits and retirement pre-tax.
- Federal Income Tax: $231.01
- Social Security Tax: $183.28
- Medicare Tax: $42.86
- NY State Income Tax: $103.51
- New York City Income Tax: $70.71
- NY SUI/SDI Tax: $1.30
- NY Paid Family Leave Insurance: $4.82
These taxes make up 20.24% of my Gross Pay. It’s a lot lower than it would otherwise be because I am maxing out my 401k and my HSA.
Bi-Weekly Benefits: $194.86
- Dental Insurance: $3.02
- HSA: $125.00
- Medical Insurance: $40.22
- Transit Card: $25.00
- Vision Insurance: $1.62
I have a High Deductible medical plan, which has $1,500 deductible, and something like $3,500 Out of Pocket Max. I hit my deductible in January, so I’ve been paying 20% of my medical fees since then.
In all, my insurance is about $90 a month, which has gone down substantially in the past few years as my company kept on changing plans and insurance companies (I think a year or two ago, it was something like $140 or $150/mo for the high deductible plan).
Bi-Weekly Retirement: $787.50
My monthly 401k contribution is $1,575. (Soon to go up because I changed my contribution from 25% of my salary to 30% few days ago.) I confirmed with my benefits person that the contribution automatically shuts down at the limit, so I shouldn’t have any over-contribution issues.
I decided to max out my 401k for the first time in 2019 after slowly upping my contribution in 2018 realizing that it’s possible. I also got a $15,000 raise at the end of the year last year, which helped in making this possible. So far, it’s been going well!
Bi-Weekly Take Home: $1,530.15
So when all said and done, my take home every paycheck is $1,530.15. I get 2 paychecks a month. My first paycheck goes into savings ($1,500 a month), and I live on the second paycheck.
With my “challenge” of living on $1,500 a month, that leaves me with about $60 a month to pad my checking account (lol).
Take Home per Year: $36,723.60
Of it, I am saving around $18,000, leaving me with around $18,700 to live off. My $1,500/mo challenge allows me to break just about even!
I hope this was interesting or informational! If you make a post like this yourself, please feel free to tag me on Twitter and I’d love to come by and take a look! 😊