I currently live in Washington state (no state income tax) and work a tech job. I am contacted by companies in California to work for them, but I am hesitant because of the state income tax in California (amongst other reasons).
For the sake of argument, let's say that I make $100,000 before taxes each year in my current Washington job and file as single for my federal income tax return. A California company offers me a job for $118,000 gross per year. Roughly speaking, even though it appears I receive a 18% nominal pay raise, I owe the state of California approximately 9% of my annual wages. So, in my view, the effective (i.e., relative to state with no income tax) pay increase is (118000 * (1.00 - 0.09)) - 100000 = 7,380 --> ~7% gross pay raise.
Are there any situations, including California workers who make more or less than my $118,000 hypothetical California annual income, where people deduct California state income taxes paid on their federal return (which reduces their federal Adjusted Gross Income)? If so, is the deduction dollar-for-dollar?