Places such as San Francisco, Washington D.C., and Portland, Ore., are havens for young adults, but they come at a cost. And, not just for housing.
SmartAsset found lists of cities where Millennials pay the most in federal, state and local taxes, based on the city’s median annual income.
Older Millennials, defined as people between the ages of 25 and 44, pay more than 30 percent of their income toward taxes in nine U.S. cities. San Francisco, at 33.7 percent leads the list, followed by San Jose (33.6 percent), Portland (31.4 percent), Arlington, Va. (31.4 percent), and Washington D.C. (31.0 percent).
Paying such a large portion of earnings towards taxes makes it difficult to save for a house, particularly for potential first-time buyers in their 20s and early 30s.
Head to Texas or the South. Younger and older millennials who pay the lowest taxes live in the deep South or in cities like Laredo and Lubbock, Texas.