Here is a response which some found helpful at Nerdwallet.com’s Ask AnAdvisor platform. This question was about accepting a transfer and the salary impact when changing states for your job.
Someone I know changed states recently but not their job title or responsibilities. In this person’s case, there was a new state tax withholding requirement which will impact cash flow until the next tax return is filed.
Some practical points to check before seeking or accepting a locale change:
- What are the taxes in your new town or city? In some large cities there will be three levels of income taxes.
- Is there a local sales tax?
- What are they paying new hires for that job function in that town or city?
- What other factors will impact your cost of living? Nice neighborhoods, schools, public transit
Other considerations for changing jobs include but are not limited to a change in your 401(k) salary deferrals (increase them if you can); the financial impact on your spouse or partner and which costs of living will change in your new place. (Housing, child care, education, transit, and for foodies – availability of organic produce or gluten-free products). Proximity to family could be important for grandparent involvement and vacations.