State releases new version of real wage calculator
Aug. 8, 2019
Want to see how far your pay stretches compared to the same wage in other states?
The South Dakota Governor’s Office of Economic Development has updated the calculator tool it developed to compute that comparison. The newest version of the real wage calculator uses 2018 state and federal income tax laws and the most recent 2019 regional price parities.
“There are a lot of wage calculators out there that only adjust gross wages by cost of living. Only the South Dakota real wage calculator accounts for the impact state and federal taxes have on wages,” said Steve Westra, GOED commissioner. “The true measure of how well you’re paid is not your gross pay, rather it is how much you can buy with your wages after the government takes its share.”
The real wage calculator starts with gross wages, and then computes and subtracts federal and state taxes to arrive at take-home pay. That figure is adjusted for cost of living to determine a job’s purchasing power. Users can compare multiple job offers to see which job really pays the best.
The tax calculations were developed by a public accounting firm and are accurate for a single filer with no dependents who uses the standard deduction, according to the state.
Cost-of-living calculations use the U.S. Bureau of Economic Analysis’ regional price parities, which allows users to compare all 50 states and more than 400 cities nationwide.
