Question

2. You are applying for a job and are considering which one to take based on the higher salary. One

is in Boston, MA, and the other one is in Dallas, TX. The new job in Boston will have a salary of
$70,000 and the tax rate will be 28%. The new job in Dallas will have a salary of $63,000 and the tax
rate will be 19%. After taxes, which one will give you more monthly take-home amount?

Answer 1

Explanation:

for Boston

100% = 70,000

28% of that have to be paid in taxes.

so, what is left is

100% - 28% = 72%

72% = 100% × 72/100 = 70,000 × 0.72 =

= $50,400

similar for Dallas

100% = 63,000

19% have to be paid in taxes.

so, what is left is

100% - 19% = 81%

81% = 100% × 81/100 = 63,000 × 0.81 =

= $51,030

so, Dallas will give more take-home amounts.