4 ms·
Note that these numbers are likely the marginal tax rate, the tax rate that the very last dollar was taxed at. However, all of the income is not taxed at that
by dsp1234 11y ago
Note that these numbers are likely the marginal tax rate, the tax rate that the very last dollar was taxed at. However, all of the income is not taxed at that rate. That is why the commenter above mentioned effective tax rate, which is the calculation of (total tax paid / total income).
- minwcnt5 11y agoAll of those numbers seem wrong. My effective tax rate in CA was around 38% for 2015. 30-35% is too low for $500k.
- tamana 11y agoWhy would you guess when someone told you they calculated? For marroed filing jointly earning $450k, the marginal rate is 35% federal plus 2.35% Medicare tax plus 9.3% CA tax. 5% higher for $500k