Is 120K a Good Salary in California or Any Other US States?
To become rich in America and become the 1% people. To live like the rich in America, you need to make at least more than $100,000 or more a year.
But to be the filthy rich in America you need to make more in America. You have to make big hits in America. In this article, we will discuss if 120k is a good salary in California or not. We will also discuss the other states that can help you save taxes and save more money.
What is a Good Salary in California?
Considering the rising prices and striking inflation going on around the world. It is never enough to make much money in California. The tax bracket all over the U.S is so complicated that a normal person can’t understand.
If you earn $120,000 per year and live in the California region of the United States, you will be taxed $39,076. That means your annual net pay will be $80,924, or $6,744 per month.
The average tax rate for you is 32.6 percent, and the marginal tax rate is 42.9 percent. So, if you don’t want to buy a house, the answer is yes. And it’s even better in Northern California than it is in Los Angeles or San Diego. In California, $120,000 is a good starting salary. But you need to increase it annually if you want to apply for a home mortgage one day.
However, if you intend to live alone in the city proper, your options will be either very small or very sketchy, as rent can be astronomically high even for a broom closet, and buying is nearly impossible with that kind of income. A young professional’s starting salary is considered to be $60,000.
Is 125K a Good Salary in San Francisco as a Software Engineer?
In the San Francisco Bay Area, $125K is a good starting salary — but not by any means a starting salary.
Yes, $125,000 for a first-year software engineer is a good starting salary if you exclude bonuses, benefits, options, and other awards. The starting salary as a Software Engineer varies from state to state, depending on the demand and supply rule.
You can make a good living as a software engineer even without a degree but only if you have all the skills that it takes to become a good software engineer. Moreover, in this way there are more chances of getting success in the IT field as it is emerging and growing day by day.
Property Tax Framework in California
Property taxes are paid to the county in California, and they are a significant source of money for your local government.
It is based on an assessed value, which is a city-determined property value that rises roughly 2% every year depending on the previous purchase price.
Property taxes support more than half of school districts’ budgets. However, about 60% on average, allowing schools in high-cost locations to have additional resources and vice versa, a significant drop in academic grades and ratings of public schools can actually negatively affect the property values in that school district. The police and fire stations are in a similar situation.
Is Tax High in California?
When compared to other states, the taxes aren’t as hefty as you may think. While some states may have a lower income tax, they may have a higher property tax. There isn’t much of a distinction between the states.
The crucial point is that California taxes are high for high-income persons but relatively low for low-income people. For example, the overall tax burden on median income of 50–60k/yr is 8.8%, compared to 11.2 percent in Texas. California has a long history of delivering high-quality services to all citizens and a tax structure that is very progressive.
How much money do you need to make to live comfortably in California?
If you’re living alone or even as a couple, Almost anywhere in California, you can live comfortably on $100,000. The city of San Francisco and Silicon Valley are the only places where it might be a worry.
You may not live in one of Los Angeles County’s most desirable areas, but you may live somewhere just gorgeous. Your hourly wage would be $51.28 if you earned $100,000 per year. If you work 37.5 hours a week, multiply your base income by the number of hours, weeks, and months you work in a year to get this figure.
The fact that the number of families earning more than $100,000 per year has risen dramatically in recent decades, from 15.2% in 1980 to an expected 30.7 percent in around 2022.
As this progress has affected a huge role in growing the economy and fighting inflation due to the after affects of Covid-19. According to the IRS, you need to make just iver $500,000 to enter the 1% population in the U.S. However, you need to overcome and learn alot about the tax system if you want to get to the top.
The rich get richer by not paying taxes and keeping money by themselves. You need to beat the tax system and keep more money in your pocket. This is how you become more and more rich by not paying to the government.
In this article, we discussed the average salary and recommendations if $120K is enough for living a good life in California. Although, despite the inflation and cost rising everyday, it is important to note that you need to make more money every year to live a comfortable life.
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