8 ms·

40% in taxes? Where are you getting this from? I know that California has very high sales tax and very high state-level income tax and those can add to federal

40% in taxes? Where are you getting this from? I know that California has very high sales tax and very high state-level income tax and those can add to federal income tax; but, federal income taxes aren't anywhere near 40% for people that make an average income.

varispeed 6y ago
I am paying in the area of 40-45% in the UK. I talked with someone from the US about this and they said they pay similar in the US. I checked for New York and got 37% which is quite in the ballpark. Is it much different in other states?
- t-writescode 6y ago
  I think they need to look at their own taxes a bit more closely, if I'm honest. https://www.bankrate.com/finance/taxes/tax-brackets.aspx https://www.bankrate.com/finance/taxes/tax-brackets.aspx And each tax bracket is a tax on the money made above that (edit: tier), meaning $1 is taxed at 37% if they made $518,402. New York's tax rates are here: http://www.tax-rates.org/new_york/income-tax http://www.tax-rates.org/new_york/income-tax New York City's sales tax is 4.5% https://www1.nyc.gov/site/finance/taxes/business-nys-sales-tax.page https://www1.nyc.gov/site/finance/taxes/business-nys-sales-t... edit: wow. I'm being downvoted quite a bit here. What am I saying wrong? Where am I wrong? Clearly I must have some misunderstanding of how taxes work, can someone clarify it for me?
  - deleted 6y ago
    [deleted]
  - varispeed 6y ago
    I used this website: https://smartasset.com/taxes/new-york-paycheck-calculator https://smartasset.com/taxes/new-york-paycheck-calculator For $160,000 salary it gives 63.28% take home.
    - t-writescode 6y ago
      When I enter the same, I see 67.17% 25.97% from taxes: 19.73 federal, 6.24 state. Social Security: 5.34% Medicare: 1.45% edit: scratch that, NYC is 63.28. Americans tend to treat taxes and social security as separate, though. The tax percentage is 29.87% in NYC
      - varispeed 6y ago
        > Americans tend to treat taxes and social security as separate, though. Here is similar, but for some time now the government can transfer money between pots (e.g. spend social security money on something else), so essentially this is just cosmetic.

varispeed 6y ago

I am paying in the area of 40-45% in the UK. I talked with someone from the US about this and they said they pay similar in the US. I checked for New York and got 37% which is quite in the ballpark. Is it much different in other states?

t-writescode 6y ago
I think they need to look at their own taxes a bit more closely, if I'm honest. https://www.bankrate.com/finance/taxes/tax-brackets.aspx https://www.bankrate.com/finance/taxes/tax-brackets.aspx And each tax bracket is a tax on the money made above that (edit: tier), meaning $1 is taxed at 37% if they made $518,402. New York's tax rates are here: http://www.tax-rates.org/new_york/income-tax http://www.tax-rates.org/new_york/income-tax New York City's sales tax is 4.5% https://www1.nyc.gov/site/finance/taxes/business-nys-sales-tax.page https://www1.nyc.gov/site/finance/taxes/business-nys-sales-t... edit: wow. I'm being downvoted quite a bit here. What am I saying wrong? Where am I wrong? Clearly I must have some misunderstanding of how taxes work, can someone clarify it for me?
- deleted 6y ago
  [deleted]
- varispeed 6y ago
  I used this website: https://smartasset.com/taxes/new-york-paycheck-calculator https://smartasset.com/taxes/new-york-paycheck-calculator For $160,000 salary it gives 63.28% take home.
  - t-writescode 6y ago
    When I enter the same, I see 67.17% 25.97% from taxes: 19.73 federal, 6.24 state. Social Security: 5.34% Medicare: 1.45% edit: scratch that, NYC is 63.28. Americans tend to treat taxes and social security as separate, though. The tax percentage is 29.87% in NYC
    - varispeed 6y ago
      > Americans tend to treat taxes and social security as separate, though. Here is similar, but for some time now the government can transfer money between pots (e.g. spend social security money on something else), so essentially this is just cosmetic.