If an individual has an annual salary of US$150K in Silicon Valley as a software engineer from his/her job, how much would this individual take home (cash)?

If said individual has to also take into account the costs of rent (renting a room for example), how much would that cost him/her monthly?

  • 1
    You left out about 40 variables that someone would need to answer your questions.However, there are lots of sites that can give you a cost of living comparison between two cities like this one: numbeo.com/cost-of-living/comparison.jsp
    – JohnFx
    Aug 15 '14 at 0:14
  • :D oops. what other information should I be providing? I am not that familiar with US income tax issues. Being based in Singapore, things are really straightforward here. :-D Aug 15 '14 at 0:16
  • There are lots of benefits plans that take money out of your paycheck, Medicare, Social Security, Health Insurance, Disability Insurance, Retirement plans, etc. It van vary a lot.
    – JohnFx
    Aug 15 '14 at 0:18
  • Ok, what's a general estimate of the costs associated with these benefit plans? Doesn't have to be accurate. Just need to be an estimate. Aug 15 '14 at 0:19
  • 1
    It varies wildly. Other factors include how much other income you have and what types, whether you are married, what tax deductions you qualify for etc. Any answer I could give you wold be meaningless without context. This site will let you estimate the Federal Income tax (very roughly), which is probably the biggest chuck they take out: bankrate.com/finance/taxes/tax-brackets.aspx
    – JohnFx
    Aug 15 '14 at 0:20

Here's a rough estimate, though these numbers may vary widely:

Gross income:                $150k
Fed Income Tax:       20%    $ 30k (Depends on dependents, etc.)
Soc Sec and Med Tax:  10%    $ 15k (Depends on dependents, etc.)
State Income Tax:     10%    $ 15k (Depends on dependents, etc.)
Medical Insurance:           $  2k (Varies widely based on coverage, etc.)
Life, disability, etc:       $  2k (Again varies widely, but plan on something)
Takehome:                    $ 86k

My estimates may be way off (I live in Texas, not California), but this should be something to start with.

As far as cost of rent, etc., try looking on zillow.com, realtor.com or some other rent/home sales website in the specific area you're thinking you'd live. There's no way to estimate that based on "Silicon Valley".

  • My only suggestion here would be to reduce the medical insurance line item by a factor of 10. Any high-paying Silicon Valley employer will typically offer a heavily subsidized medical plan, with total employee premiums around $1000 per year. (Maybe $2000 if you have a family and some weird plan.)
    – dg99
    Aug 15 '14 at 17:24
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    @dg99 - Yeah, it is definitely open to variability. It could be less if you're single, and it also really depends on how much the employer covers. $2k ($166/mo.) is not bad for just an employee and spouse. I've paid over $350/mo or more at places for a family, and if no employer help it could run as much as $800/mo. or more. Cutting it to $2k/year.
    – Jared
    Aug 15 '14 at 20:13

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