After tax wages is the gross annual wage less the total of federal income tax, state income tax, and social security/FICA tax.
Real wage/purchasing power is calculated by dividing after tax wages by the local cost of living index.
All taxes are calculated using 2015 tax laws and rates.
All federal and state income tax calculations assume single filing status, standard deduction, and no additional dependents.
No local income taxes are calculated, the following have local income taxes: AL, AR, CO, DE, IA, IN, KY, MD, MI, MO, NY, OH, OR, PA, & DC
The tax calculations were prepared by a leading public accounting firm.
The calculator uses regional price parities for the cost of living index. The regional price parties are produced by the United States Bureau of Economic Analysis.
Regional price parities are for 2014, the 2015 regional price parities will become available in the summer of 2017.
The Real Wage Calculator will be updated for 2016 tax changes and cost of living in 2017.
This calculator is for educational purposes only. It should not be construed as financial or investment advice. Personal data is not stored or shared through this website.