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Nit: That 52.9% number isn’t quite right because you get to deduct your CA income tax against your federal income tax. So in practice even if you made a billion
by gok 9y ago
Nit: That 52.9% number isn’t quite right because you get to deduct your CA income tax against your federal income tax. So in practice even if you made a billion dollars in California, you’d pay $133M to the state then get federally taxed 39.6% on the remaining $867M, giving you an effective tax rate of about 47%.
- cjlars 9y agoGood point, updated. It would be further impacted by AMT and the standard deduction thresh-hold, but that's a good estimate I think.