Federal marginal tax rates for 2018 are capped at 37% if you make $500K ($600K for a couple). If you're hitting that plus 8% for state, then I don't have too mu

Federal marginal tax rates for 2018 are capped at 37% if you make $500K ($600K for a couple). If you're hitting that plus 8% for state, then I don't have too much sympathy. And that's a marginal rate, not an effective rate (which it seems you're conflating). If you earned $500k, and were single/no deps, and just took the standard $12K deduction, your Federal tax would be 29% ($145K). I can't imagine someone with that income not having more deductions or IRA/401 contributions that would minimize the tax burden, but I suppose there's always someone out there completely clueless.