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Would that mean that, since California + Federal taxes are something like 46%, post tax income is roughly 54% salary? If so, they're saving only roughly 15-25%
by jjtheblunt 7y ago
Would that mean that, since California + Federal taxes are something like 46%, post tax income is roughly 54% salary?
If so, they're saving only roughly 15-25% income?
- jedberg 7y ago> California + Federal taxes are something like 46% 49.3% is the top rate you'd pay in California at the highest bracket (or 50.3% if you make over a million) . If your income is over 2 million a year you'd pay an effective rate of 44%. If your income is $200K, your effective rate is about 34%.
- chii 7y agoat higher and higher incomes, it makes more and more sense to try and deduct income via investment costs (such as interest on borrowing). So your optimized effective tax rate would be a lot lower.