CHICAGO (KTVI/WGN) – Earning a six-figure salary is a major milestone for many workers and often considered a benchmark of comfortable living in the Midwest, but it doesn’t always reflect what ends up in your bank account.
Depending on where you live, taxes can chip away tens of thousands of dollars from your gross income. To actually bring home six figures in a year, you’ll need to earn significantly more than $100,000.
That’s the focus of a new study from personal finance website GoBankingRates, which determined “the salary needed to actually take home $100K in every state.”
According to GoBankingRates, to truly take home six figures at the end of a year, an individual must make at least $141,010 in Illinois.
Every state commanded a salary of at least $131,000 to clear six figures after taxes.
As for tax burdens, Illinois ranked 18th with 29.1%.
To determine these figures, a research team at GoBakingRates considered both federal and state income taxes, along with standard deductions specific to each state.
Nine states with no state income tax, including Florida and Texas, ranked among the most favorable to take home six figures after taxes. Meanwhile, Oregon topped the list as the least tax-friendly state, requiring a salary of $148,309 to net $100,000 post-taxes.
