If one was given a couple guesses as to which is the best city to launch a startup, the list would no doubt include the usual suspects: New York City, San Francisco and the like. But one city that probably would not be included is Austin, Texas.
It is Austin, however, that is the top city for startups. What does it all boil down too?
Well, as it typically does: dollars and cents.
To start, Texas has no state income tax. The max income tax in San Francisco is 13.3%. The median tech wage is Austin ($93,240) is also significantly smaller than its counterpart in San Francisco ($123,497).vTo top it all off, the cost of office space for 12 months in San Francisco ($112,200) is almost double what it would be in Austin ($63,850).
Take a look at the infographic below from GoodApril to see the top 7 cities for startups and what it is that separates Austin from the pack and to see where New York fits into the picture.