NYC BigLaw Associates- How much after taxes?

(On Campus Interviews, Summer Associate positions, Firm Reviews, Tips, ...)
Forum rules
Anonymous Posting

Anonymous posting is only appropriate when you are revealing sensitive employment related information about a firm, job, etc. You may anonymously respond on topic to these threads. Unacceptable uses include: harassing another user, joking around, testing the feature, or other things that are more appropriate in the lounge.

Failure to follow these rules will get you outed, warned, or banned.
User avatar
crazycanuck

Gold
Posts: 3493
Joined: Wed Feb 18, 2009 4:04 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby crazycanuck » Sat Jul 17, 2010 11:48 am

Anonymous User wrote:My friends who are BigLaw take home 93k after 160k in NYC. Then they pay 25k a year for loans(if they are on the 10 year plan, some are on the 5 year plan which means they are paying about 45-50 or something). So my 10 year plan friends get 67k after taxes. Still a lot of money but not much more than I made my 3rd year out of college.


67k is barely more than I make right now straight out of UG, and I bill ~1300 hours.

Renzo

Gold
Posts: 4249
Joined: Tue Dec 02, 2008 3:23 am

Re: NYC BigLaw Associates- How much after taxes?

Postby Renzo » Sat Jul 17, 2010 11:53 am

crazycanuck wrote:
Anonymous User wrote:My friends who are BigLaw take home 93k after 160k in NYC. Then they pay 25k a year for loans(if they are on the 10 year plan, some are on the 5 year plan which means they are paying about 45-50 or something). So my 10 year plan friends get 67k after taxes. Still a lot of money but not much more than I made my 3rd year out of college.


67k is barely more than I make right now straight out of UG, and I bill ~1300 hours.

How much you make, or how much you clear after taxes and loan payments? Because you're confusing the point, it seems.

User avatar
crazycanuck

Gold
Posts: 3493
Joined: Wed Feb 18, 2009 4:04 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby crazycanuck » Sat Jul 17, 2010 11:58 am

Renzo wrote:
crazycanuck wrote:
Anonymous User wrote:My friends who are BigLaw take home 93k after 160k in NYC. Then they pay 25k a year for loans(if they are on the 10 year plan, some are on the 5 year plan which means they are paying about 45-50 or something). So my 10 year plan friends get 67k after taxes. Still a lot of money but not much more than I made my 3rd year out of college.


67k is barely more than I make right now straight out of UG, and I bill ~1300 hours.

How much you make, or how much you clear after taxes and loan payments? Because you're confusing the point, it seems.


After taxes, ~50k (not counting the additional $$ I get in my benefits plan which is close to 3k). 15k is not a whole lot more, especially considering the extra 1000 hours billed.

User avatar
stratocophic

Gold
Posts: 2204
Joined: Tue Dec 22, 2009 6:24 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby stratocophic » Sat Jul 17, 2010 12:10 pm

crazycanuck wrote:
Renzo wrote:
crazycanuck wrote:
Anonymous User wrote:My friends who are BigLaw take home 93k after 160k in NYC. Then they pay 25k a year for loans(if they are on the 10 year plan, some are on the 5 year plan which means they are paying about 45-50 or something). So my 10 year plan friends get 67k after taxes. Still a lot of money but not much more than I made my 3rd year out of college.


67k is barely more than I make right now straight out of UG, and I bill ~1300 hours.

How much you make, or how much you clear after taxes and loan payments? Because you're confusing the point, it seems.


After taxes, ~50k (not counting the additional $$ I get in my benefits plan which is close to 3k). 15k is not a whole lot more, especially considering the extra 1000 hours billed.

New plan:

1. Stick with current job
2. ???
3. Profit

User avatar
crazycanuck

Gold
Posts: 3493
Joined: Wed Feb 18, 2009 4:04 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby crazycanuck » Sat Jul 17, 2010 12:18 pm

stratocophic wrote:
1. Stick with current job
2. ???
3. Profit


That's my plan, law school is for schmucks.

User avatar
stratocophic

Gold
Posts: 2204
Joined: Tue Dec 22, 2009 6:24 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby stratocophic » Sat Jul 17, 2010 12:23 pm

crazycanuck wrote:
stratocophic wrote:
1. Stick with current job
2. ???
3. Profit


That's my plan, law school is for schmucks.

Image

LawSchoolWannaBe

Bronze
Posts: 212
Joined: Sun Oct 21, 2007 12:57 am

Re: NYC BigLaw Associates- How much after taxes?

Postby LawSchoolWannaBe » Sat Jul 17, 2010 12:34 pm

Yay for no state income tax and (relatively) cheap housing in Texas!

User avatar
swc65

Silver
Posts: 1003
Joined: Wed Jul 22, 2009 11:27 am

Re: NYC BigLaw Associates- How much after taxes?

Postby swc65 » Sat Jul 17, 2010 12:42 pm

Bryan wrote:Start with 160 000. Assuming you are single.
$5718.80 in city income taxes (1706 plus income above 50k taxed at 3.468%)
$10562.78 in state taxes (6.85%of all income over 20k. The first 20k is taxed at rates from 4 to 5.9%)
$36923.60 in federal taxes (ranges from 10 to 28%, all income over $82k taxed at 28%, basic personal deduction of $5700)
FICA is $6324 (all income up to 102k taxed at 6.2%)

So, you take home $100 470.83

This is probably an overly conservative estimate since I only included the basic personal deduction. I'm not a tax guy and I've never taken an accounting course but I imagine there are a whole bunch of ways to significantly reduce your tax liability.

I'm not positive that these are all the most recent rates and brackets, but it should be pretty close.

Like the other guy said, the loan question depends on how much you borrowed, how long the repayment program is, and what type of loans they are.



This is a great analysis for post-tax take-home pay. Your paycheck might be lower on a bi-weekly basis than this would indicate if you do not adjust your W-4 properly and end up being owed money at the end of the year.
Last edited by swc65 on Sat Jul 17, 2010 12:43 pm, edited 1 time in total.

User avatar
swc65

Silver
Posts: 1003
Joined: Wed Jul 22, 2009 11:27 am

Re: NYC BigLaw Associates- How much after taxes?

Postby swc65 » Sat Jul 17, 2010 12:43 pm

LawSchoolWannaBe wrote:Yay for no state income tax and (relatively) cheap housing in Texas!



Yeah that's so amazing. I have done those cost of living adjustment calculators and living in TX is like making more than 2x the salary in Manhattan!

Renzo

Gold
Posts: 4249
Joined: Tue Dec 02, 2008 3:23 am

Re: NYC BigLaw Associates- How much after taxes?

Postby Renzo » Sat Jul 17, 2010 12:44 pm

crazycanuck wrote:
Renzo wrote:
crazycanuck wrote:
Anonymous User wrote:My friends who are BigLaw take home 93k after 160k in NYC. Then they pay 25k a year for loans(if they are on the 10 year plan, some are on the 5 year plan which means they are paying about 45-50 or something). So my 10 year plan friends get 67k after taxes. Still a lot of money but not much more than I made my 3rd year out of college.


67k is barely more than I make right now straight out of UG, and I bill ~1300 hours.

How much you make, or how much you clear after taxes and loan payments? Because you're confusing the point, it seems.


After taxes, ~50k (not counting the additional $$ I get in my benefits plan which is close to 3k). 15k is not a whole lot more, especially considering the extra 1000 hours billed.

True. Biglaw is a ponzi scheme. If you're "in" than the income growth more than makes up for it--but most people aren't "in;" instead they provide the slave labor that makes it worthwhile for those at the top.

User avatar
romothesavior

Diamond
Posts: 14692
Joined: Fri Jun 26, 2009 4:29 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby romothesavior » Sat Jul 17, 2010 12:46 pm

swc65 wrote:
LawSchoolWannaBe wrote:Yay for no state income tax and (relatively) cheap housing in Texas!



Yeah that's so amazing. I have done those cost of living adjustment calculators and living in TX is like making more than 2x the salary in Manhattan!


Same with the Midwest. Why anyone would want to live in NYC is beyond me, but different strokes for different folks I guess.

User avatar
swc65

Silver
Posts: 1003
Joined: Wed Jul 22, 2009 11:27 am

Re: NYC BigLaw Associates- How much after taxes?

Postby swc65 » Sat Jul 17, 2010 12:54 pm

romothesavior wrote:
swc65 wrote:
LawSchoolWannaBe wrote:Yay for no state income tax and (relatively) cheap housing in Texas!



Yeah that's so amazing. I have done those cost of living adjustment calculators and living in TX is like making more than 2x the salary in Manhattan!


Same with the Midwest. Why anyone would want to live in NYC is beyond me, but different strokes for different folks I guess.



Really? Cuz there ain't no better place in the world, doy! :lol:

NYAssociate

Silver
Posts: 713
Joined: Wed Jun 09, 2010 8:15 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby NYAssociate » Sat Jul 17, 2010 12:55 pm

.
Last edited by NYAssociate on Tue Oct 05, 2010 5:30 pm, edited 1 time in total.

User avatar
thecilent

Gold
Posts: 2500
Joined: Sat Dec 12, 2009 4:55 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby thecilent » Sat Jul 17, 2010 1:10 pm

swc65 wrote:
romothesavior wrote:
swc65 wrote:
LawSchoolWannaBe wrote:Yay for no state income tax and (relatively) cheap housing in Texas!



Yeah that's so amazing. I have done those cost of living adjustment calculators and living in TX is like making more than 2x the salary in Manhattan!


Same with the Midwest. Why anyone would want to live in NYC is beyond me, but different strokes for different folks I guess.



Really? Cuz there ain't no better place in the world, doy! :lol:

270910

Gold
Posts: 2431
Joined: Thu May 21, 2009 9:51 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby 270910 » Sat Jul 17, 2010 1:34 pm

Team Texas: You are not wrong about how far your first year of salary will go in TX as compared to NYC. But consider the following carefully:

Baker Botts (TX) Salary Structure
1st year: $160,000
2nd year: $170,000
3rd year: $170,000
4th year: $175,000
5th year: $175,000
6th year: $185,000
7th year: $185,000
8th year: $185,000

Fulbright & Jaworski (TX) Salary Structure:
1st year: $160,000
2nd year: $165,000
3rd year: $170,000 [no more data avail.]

Shearman & Sterling (V25 NYC firm) Salary Structure:

1st year: $160,000
2nd year: $170,000
3rd year: $185,000
4th year: $210,000
5th year: $230,000
6th year: $250,000
7th year: $265,000
8th year: $280,000

So yeah. NYC charges more tax, and also gives out truckloads more money after the first year.

User avatar
como

Silver
Posts: 511
Joined: Thu Dec 11, 2008 2:41 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby como » Sat Jul 17, 2010 1:53 pm

disco_barred wrote:Team Texas: You are not wrong about how far your first year of salary will go in TX as compared to NYC. But consider the following carefully:

Baker Botts (TX) Salary Structure
1st year: $160,000
2nd year: $170,000
3rd year: $170,000
4th year: $175,000
5th year: $175,000
6th year: $185,000
7th year: $185,000
8th year: $185,000

Fulbright & Jaworski (TX) Salary Structure:
1st year: $160,000
2nd year: $165,000
3rd year: $170,000 [no more data avail.]

Shearman & Sterling (V25 NYC firm) Salary Structure:

1st year: $160,000
2nd year: $170,000
3rd year: $185,000
4th year: $210,000
5th year: $230,000
6th year: $250,000
7th year: $265,000
8th year: $280,000

So yeah. NYC charges more tax, and also gives out truckloads more money after the first year.


I'd be interested to know whether NYC has a shorter or stricter up-and-out mentality than TX though. If so, those future NYC cashflows should be discounted to reflect the diminished probability of obtaining them.

Renzo

Gold
Posts: 4249
Joined: Tue Dec 02, 2008 3:23 am

Re: NYC BigLaw Associates- How much after taxes?

Postby Renzo » Sat Jul 17, 2010 1:59 pm

como wrote:
disco_barred wrote:Team Texas: You are not wrong about how far your first year of salary will go in TX as compared to NYC. But consider the following carefully:

Baker Botts (TX) Salary Structure
1st year: $160,000
2nd year: $170,000
3rd year: $170,000
4th year: $175,000
5th year: $175,000
6th year: $185,000
7th year: $185,000
8th year: $185,000

Fulbright & Jaworski (TX) Salary Structure:
1st year: $160,000
2nd year: $165,000
3rd year: $170,000 [no more data avail.]

Shearman & Sterling (V25 NYC firm) Salary Structure:

1st year: $160,000
2nd year: $170,000
3rd year: $185,000
4th year: $210,000
5th year: $230,000
6th year: $250,000
7th year: $265,000
8th year: $280,000

So yeah. NYC charges more tax, and also gives out truckloads more money after the first year.


I'd be interested to know whether NYC has a shorter or stricter up-and-out mentality than TX though. If so, those future NYC cashflows should be discounted to reflect the diminished probability of obtaining them.

PPP of the NYC firms pretty much categorically destroy the PPP of other firms, even big TX, DC, and CA firms, suggesting no, there's just more money in the NYC firms.

270910

Gold
Posts: 2431
Joined: Thu May 21, 2009 9:51 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby 270910 » Sat Jul 17, 2010 2:00 pm

You can't really look at it as 'probability of obtaining'. Very few people leave big law firms anywhere because they're laid off. It's just a brutal life style, and so while certainly brutal-er in NYC than in many other markets, even if more people leave early from NYC big law it is very likely that it's a personal choice.

270910

Gold
Posts: 2431
Joined: Thu May 21, 2009 9:51 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby 270910 » Sat Jul 17, 2010 2:01 pm

Renzo wrote:PPP of the NYC firms pretty much categorically destroy the PPP of other firms, even big TX, DC, and CA firms, suggesting no, there's just more money in the NYC firms.


+1. There are a dozen plus NYC firms ahead of the fanciest most prestigiousiest DC firms in most PPP metrics, as an example. There's a reason legal work flocks to NYC, and it's not because people like paying the city's taxes.

NYAssociate

Silver
Posts: 713
Joined: Wed Jun 09, 2010 8:15 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby NYAssociate » Sat Jul 17, 2010 4:37 pm

.
Last edited by NYAssociate on Tue Oct 05, 2010 5:30 pm, edited 1 time in total.

Renzo

Gold
Posts: 4249
Joined: Tue Dec 02, 2008 3:23 am

Re: NYC BigLaw Associates- How much after taxes?

Postby Renzo » Sat Jul 17, 2010 5:10 pm

NYAssociate wrote:
Very few people leave big law firms anywhere because they're laid off. It's just a brutal life style, and so while certainly brutal-er in NYC than in many other markets


Do you actually have any basis for saying the stuff you say? I see farewell emails every day from associates going on to other opportunities, and I'm at a top NY firm. Attrition is decently high. The up-or-out mentality is pretty terrible.

I think there's a small misunderstanding of terminology here. Disco_barred is right in that very few biglaw lawyers get called in, handed a pink slip, and escorted out of the building; but that doesn't mean that the attrition is voluntary. When your performance reviews all the sudden turn sour, and no one will give you any work, that may not be a "layoff," but everyone understands what's going on.

270910

Gold
Posts: 2431
Joined: Thu May 21, 2009 9:51 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby 270910 » Sat Jul 17, 2010 5:27 pm

NYAssociate wrote:
disco_barred wrote:Very few people leave big law firms anywhere because they're laid off. It's just a brutal life style, and so while certainly brutal-er in NYC than in many other markets


Do you actually have any basis for saying the stuff you say?


Well, I work at a big law firm, I have multiple very close family members who are or were partners at big law firms, and have many friends friends at big law firms.

So, no.

No basis at all. Just making shit up.

Somehow we make posts and comments and have thoughts that I honestly think are very similar, but you're extraordinarily antagonistic whenever we interact. I don't understand it. I don't disagree with anything you wrote in your recent post. I read it twice to be sure. I don't think anything I've written in this thread even contrasts with it.

Well, except for this little gem:

NYAssociate wrote:Unless you're partner-track, NY biglaw makes almost no economic sense.


??? Does not compute.

User avatar
BunkMoreland

Bronze
Posts: 289
Joined: Thu Jan 21, 2010 3:16 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby BunkMoreland » Sat Jul 17, 2010 11:52 pm

I think the right question to ask here has already been asked: Are the exit options in Man-fucking-hattan that much better than in BIGTEXAS that once you want out of the big law game it'll have been worth it to be in NYC?

270910

Gold
Posts: 2431
Joined: Thu May 21, 2009 9:51 pm

Re: NYC BigLaw Associates- How much after taxes?

Postby 270910 » Sat Jul 17, 2010 11:55 pm

BunkMoreland wrote:I think the right question to ask here has already been asked: Are the exit options in Man-fucking-hattan that much better than in BIGTEXAS that once you want out of the big law game it'll have been worth it to be in NYC?


I mean, define better. I'd imagine it's easier to work for a bank after a stint in NYC big law but easier to work for an energy company after a stint in Texas, you know?

Life isn't ordinal, no matter how much law students / law school / the legal profession try to make it seem that way.

Renzo

Gold
Posts: 4249
Joined: Tue Dec 02, 2008 3:23 am

Re: NYC BigLaw Associates- How much after taxes?

Postby Renzo » Sun Jul 18, 2010 1:04 am

disco_barred wrote:
BunkMoreland wrote:I think the right question to ask here has already been asked: Are the exit options in Man-fucking-hattan that much better than in BIGTEXAS that once you want out of the big law game it'll have been worth it to be in NYC?


I mean, define better. I'd imagine it's easier to work for a bank after a stint in NYC big law but easier to work for an energy company after a stint in Texas, you know?

Life isn't ordinal, no matter how much law students / law school / the legal profession try to make it seem that way.

Right. If you want to go in-house at an energy company, a Texas firm is probably the place to be. If you want to go to one of the regulatory agencies, a DC regulatory firm is the place. If you want to go in house at Metlife, Cravath (et al.) it where you want to be. Fact is, however, that there are more "name brand" firms in NYC, and more big companies with HQs and C-levels conducting business in NYC then there are in Tx, etc.



Return to “Legal Employment�

Who is online

The online users are hidden on this forum.