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> In the USA alone, assuming 50% of your bonuses go to taxation 50% of bonuses? That seems low, it's closer to 50% of total comp (maybe 40-45) in the places wh
by thebean11 6y ago
> In the USA alone, assuming 50% of your bonuses go to taxation
50% of bonuses? That seems low, it's closer to 50% of total comp (maybe 40-45) in the places where these salaries are common.
- whack 6y agoThe federal tax brackets are the same everywhere you go. If you're married and making 350k, most of your income will fall in the ~23% tax bracket. And a small portion will be taxed at 32%. The main variable is state taxes. If you're living in California, most of your income will be taxed at ~9.3%. With a small portion taxed at 10.3%. So your marginal tax rate will be 43%, and your overall tax rate will be closer to ~33%. Nit: USA does not tax bonuses any differently from salary. They are both interchangeable, when computing taxes. Also, all income-percentile metrics in USA are based on pre-tax income, not post-tax. https://taxfoundation.org/publications/federal-tax-rates-and-tax-brackets/ https://taxfoundation.org/publications/federal-tax-rates-and... https://www.nerdwallet.com/article/taxes/california-state-tax https://www.nerdwallet.com/article/taxes/california-state-ta...
- thebean11 6y agoI'm seeing 38% effective tax rate with 300k in CA all things considered. But anyway I agree, 50% of bonus doesn't reflect the total amount or the way things are taxed.
- 6gvONxR4sf7o 6y agoSince silicon valley is in california, yeah you're probably paying about 39% to taxes, leaving you $212k of your $350k. (using this tax calculator https://smartasset.com/taxes/california-tax-calculator#zj8lo3i5Tv https://smartasset.com/taxes/california-tax-calculator#zj8lo...)