Quote:
Originally Posted by CivicBlues
I don't know why you keep using NYC/LA/Bay references? You realize we're all mostly Canadians living in Vancouver and Toronto right?  |
That's a good point. Here's an another point about living in New York state and California that many Canadians may not know.
If you are a millennial or Gen Z with a well paying job, they may not not want to live in New York city or in California because of the state income tax.
In fact, California has the highest top marginal state income tax in the U.S.
California State Income Tax Rates (2025)
California has the highest top marginal state income tax rate in the country. The rates range from 1% to 13.3%, with the 13.3% top rate including a 1% mental health services tax on income over $1 million.
The tax brackets for a single filer or married person filing separately for 2025 are (approximate income brackets):
1% on income up to approximately $10,756
2% on income over $10,756 to $25,499
4% on income over $25,499 to $40,245
6% on income over $40,245 to $55,866
8% on income over $55,866 to $70,606
9.3% on income over $70,606 to $360,659
10.3% on income over $360,660 to $432,787
11.3% on income over $432,788 to $721,314
12.3% on income over $721,315 (plus the additional 1% for income over $1 million, effectively 13.3% at the top bracket)
New York State Income Tax Rates (2025)
New York has a top marginal state income tax rate of 10.9%. New York City and Yonkers residents also pay an additional local income tax.
The tax brackets for a single filer for 2025 range from 4% to 10.9% (approximate income brackets):
4% on income up to $8,500
4.5% on income over $8,500 to $11,700
5.25% on income over $11,700 to $13,900
5.5% on income over $13,900 to $80,650
6% on income over $80,650 to $215,400
6.85% on income over $215,400 to $1,077,550
9.65% on income over $1,077,550 to $5,000,000
10.3% on income over $5,000,000 to $25,000,000
10.9% on income over $25,000,000
One of my American cousins and her husband have high paying jobs as engineers living in Huntington Beach, California.
Surf city. My cousin and her husband have an annual salary of over 250,000 US each.
Huntington Beach is a pretty baller town. AMG S Class and 7 Series sedans, Mercedes/Beemer SUVs and Tesla Model Xs are quite common in that town.
My cousin and her husband make a good salary such that they can afford to pay their house property tax bill of $20,000 US each year.
They have the income to pay American federal and California state income taxes. They are in the Gen X demographic like me.
Millennials and Gen Z may not have the same employment income level as my cousin and her hubby though.
If people in those two demographics are single, they are highly mobile in terms of moving to another state for work. Why not live another state like Texas instead of California and New York.
Texas has no state income tax. There are pockets of highly paid professionals in the millennial and perhaps the Gen Z demographic who live in Dallas.
https://fortune.com/2024/09/13/top-s...florida-texas/
Interesting article. California and New York are NOT the top states where millennials and Gen Z's move to for work.
1. Florida 2. Texas 3. Colorado 4. North Carolina.
Mike, can you confirm if Dallas has pockets of well off millennials and Gen Z's living there? I hear that Dallas is a great place for the young bloods to go shopping at their malls there.
I would also think that the renting or buying an apartment is cheaper in Texas compared to New York or California.