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Property taxes are a huge burden where I live. Esp when you retire and have lower income you still have to pay $1-2k every month in taxes which is nearly as muc
by x87678r 6y ago
Property taxes are a huge burden where I live. Esp when you retire and have lower income you still have to pay $1-2k every month in taxes which is nearly as much as SS pays.
Marginal is well over 50% in NYC, CA. eg top bracket marginal is 37% federal + 12.3% CA state + 1.45% Medicare is over 50% before property taxes. 40% total tax is very easy to hit.
Like I said before if you're on Social Security or unemployed its really tough, I know someone who's out of work and paying $2.5K a month in property taxes, it eats up your savings super fast.
- dragonwriter 6y ago> Marginal is well over 50% in NYC, CA. eg top bracket marginal is 37% federal + 12.3% CA state The top tax rate is actually 13.3% state, but even the 12.3% kicks in at over $590k for a single taxpayer, well above the 99th percentile individual income for the state, which means it's very much not normal for people to pay that much.
- marvin 6y agoFor comparison, the highest marginal income tax bracket in Norway is 46.4%, which applies from $100,000 per year. On top of this is 25% VAT on all purchases, 32% capital gains tax and 0.85% of net worth (with conplex deductions; 75% for primary home and 40% for stocks) each year. Employer pays 14% of your salary in tax, as well as 22% on all profits before owners pay capital gains on dividends on the remaining.
- ghaff 6y agoI find that staggering. I live in Massachusetts which is not considered a low cost state and have a nice house with a fair bit of property if nothing high-end and I'm less than 20% that.
- lotsofpulp 6y agoProperty taxes are only that high in NJ/CT/IL/TX maybe, or other states and cities that have grossly underfunded and mismanaged pension debt and other debt from government employee retiree benefits.