It often happens that colleagues in the same position with an identical Gross salary receive a different Net amount in their account. The main reason is differences in local tax rates and the autonomy of municipalities in creating their own budgets.
Depending on the laws, large cities and municipalities often have a certain autonomy in determining specific tax deductions or rates charged by the Tax Administration. Although the basic income tax rate is often unified at the state level, local factors can influence the final calculation.
Large centers record a huge influx of population and the need to maintain complex public infrastructure. This often results in the application of the maximum allowed burden rates on workers' income.
Residence in a large city with high living costs and infrastructure often brings with it a higher tax burden, resulting in a somewhat smaller net amount in the account.
Smaller communities can adjust local regulations to attract investment and retain the population, which for the worker can mean a smaller tax deduction and a larger Net amount.
Balancing the cost of living:
This system reflects an economic balance – although salaries in metropolises are often higher in gross terms, tax burdens and living costs (real estate) are also significantly higher. It is important to use a precise calculator that takes into account local specificities for the most accurate calculation.