LONG BEACH, CALIFORNIA – NOVEMBER 5 : Rows of palm trees are silhouetted during sunset, November 5, … [+]
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Could things get worse for California’s workers?
The Golden State just got awarded another red flag. It’s bad news for people who want to work there.
The news come on top of the disastrous AB5 law that restricts many people from working as independent contractors, if they reside in the state. This means that many companies from around the U.S. have simply stopped hiring freelancers who are based in California. On top of that it has delivered financial pain on gig workers, who desired the flexibility of freelance work, usually from home.
But there’s more bad news for these so-called remote workers who are based in California.
All of the 10 worst cities for remote workers are based in California, according to a recent report from LawnStarter titled 2023’s Best Cities for Remote Workers.
The report ranks the cities based on web connection quality and availability, access to WeWork-style work spaces, state-provided relocation bonuses (if any) cost, earnings potential, and others.
Its well-known that the vast wealth created in Silicon Valley, and Hollywood’s spectacular global success, have driven up the cost of living in the Golden State. Given that remote workers are paid on what they do rather than where they live, the problem with California should be obvious. It’s too expensive not just in terms of real estate prices, but also for taxes.
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The median price for a family home in California is more than $800,000 , compared to $429,000 nationally. Currently, the housing market is under pressure, but the difference in price levels should be telling.
There’s more. California’s state income tax combined with other local taxes is by far the highest in the country. California’s weighted tax level is 11.56%, far beyond New York’s state taxes at 7.4% which is usually cited as eyewatering. Wyoming has the lowest income tax, at 1.2% rate.
That’s why it shouldn’t surprise anyone that Santa Ana is the worst place in America for remote working. In second, third, and fourth position on worst places for remote working are Salinas, Glendale and Garden Grove.
The best state for remote workers, according to the study, is Texas.
Plano, Frisco, and Austin are ranked first, second and seventh, respectively. Florida’s Tampa and Jacksonville come in at third and ninth respectively.
Of course, if the best cities for remote working in this list don’t appeal, there’s always the opportunity to go abroad.
