Via Tax Foundation
A $100 in New York State has a real value of just $86.51, according to a report released this week by the Tax Foundation, an independent tax policy research group. And while New Yorkers know the cost of housing here ranks among the highest in the country and drives up the cost of living, everyday goods, including groceries, are also more expensive than most other states.
Somewhat surprisingly, the Empire State does not rank first for least valuable $100 but does fall in the top five. A Benjamin is worth the least in Hawaii ($84.46), D.C. ($86.28), New York ($86.51), California ($87.41) and New Jersey ($88.34).
On the other hand, $100 is worth the most in Mississippi ($115.74), Alabama ($115.47), Arkansas ($115.07), West Virginia ($114.16) and Kentucky ($113.90).
The group found that “real purchasing power” (the number of goods one unit of money can buy) is 34 percent greater in Mississippi than in New York. This means, if you have $50,000 after-tax income in MS, to afford the same standard of living in New York, you would need $67,000 in earnings after taxes.
But this makes sense, as states with higher incomes typically have higher price levels. Unless you look at North Dakota, where residents enjoy higher than normal incomes without the high prices. Is the bigger bang for a buck worth the move?
More from the Tax Foundation here.
- New York buildings claim the country’s highest property taxes
- Infographic Shows How Much Income Tax People Pay in the World’s Major Cities
- FiDi Residents Get the Largest Tax Returns in the City, According to the IRS