> Let's round that up to 50% to simplify our maths. Congratulations - you are now making $150k/year! From 300 down to 150 just like that. That's not how it wor

> Let's round that up to 50% to simplify our maths. Congratulations - you are now making $150k/year! From 300 down to 150 just like that. That's not how it works. Anything above $200,000 will be taxed at 35%. You're taxed in brackets. For the first $9525 you're taxed at 10%, from $9525 to $38,700 you're taxed at 12%, and on we go. Your actual federal income tax at $300,000 is going to be more like $80,000. California state income tax is the same way, and the 13% doesn't appear to kick in until you're above a million [0], so that's more like $25,000, for a total of $106,000ish[1]. You "simplified" $44,000 away. [0]: https://www.tax-brackets.org/californiataxtable https://www.tax-brackets.org/californiataxtable [1]: I'm really bad at my taxes, so take that number with a grain of salt, but it sure as hell isn't a flat $150,000.