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State income tax is not generally the important part. From a quick search, the highest rate in the nation is 13.3% in California. The Federal income tax rate to
by mikeash 9y ago
State income tax is not generally the important part. From a quick search, the highest rate in the nation is 13.3% in California. The Federal income tax rate tops out at 37%, and there's also 7.65% Federal payroll tax.
- nunez 9y agoYes it is because that 13.3% is on top of your federal taxes (which don't change). A Californian making $150k is making $20,000 less than a Texan making $150k. That's sizeable! And Californians pay more in property taxes!
- mikeash 9y agoThe 13.3% bracket starts at around a million dollars a year. Where do you get $20,000 from? A single person with no dependents with that income would pay about $11,000 in state income tax and $37,000 in federal income tax.
- nunez 9y ago150*0.133. That's still $11k coming out of your pocket for the privilege of living in California.
- mikeash 9y agoAnd that’s still $37,000 making a huge difference between your net and gross income. I don’t dispute that state taxation makes a difference. I dispute that it makes such a huge difference.