Help me with a Cost of Living/Tax question

[ThunderAeroI]

Say you live in a place and make 50,000 and your considering moving to another place where the cost of living is less where your salary could be 44,000 but they will pay you 53,000. You potentially have an increase in your buying power of 9,000. Right so far?

What if this new place has state income tax as well as sales tax, but you currently only paid sales tax. If your current place has a sales tax of 6% and your new location had 7% with 4% income tax. Would you see any increase in your pay at the end of the day?

 

[Mistral]

based on a lower cost of living, your buying power would be increased-even if your $ amount was slightly lower on your check.

 

[John Picard]

Say you live in a place and make 50,000 and your considering moving to another place where the cost of living is less where your salary could be 44,000 but they will pay you 53,000. You potentially have an increase in your buying power of 9,000. Right so far?

What if this new place has state income tax as well as sales tax, but you currently only paid sales tax. If your current place has a sales tax of 6% and your new location had 7% with 4% income tax. Would you see any increase in your pay at the end of the day?

Depends on what you're paying for utilities, groceries, transportation, etc. Realtor.com has calculators that will help determine what your equivalent salary would have to be where the planned move is.

 

[Holdfast]

Say you live in a place and make 50,000 and your considering moving to another place where the cost of living is less where your salary could be 44,000 but they will pay you 53,000. You potentially have an increase in your buying power of 9,000. Right so far?

What if this new place has state income tax as well as sales tax, but you currently only paid sales tax. If your current place has a sales tax of 6% and your new location had 7% with 4% income tax. Would you see any increase in your pay at the end of the day?

As John Picard points out, you're oversimplifying.

What you need to do is figure out your new net income and your outgoings in the new location, before you can determine where your purchasing power is greater. Don't forget to also factor in dynamic changes ie how things are likely to change over the coming years, both in terms of salary and outgoings in the new place vs the old.