5 ms·
If you take state income tax into account, it's possible to hit a marginal rate of about 50% if you live in, say, California.
by NickM 5y ago
If you take state income tax into account, it's possible to hit a marginal rate of about 50% if you live in, say, California.
- zeusk 5y agoI'm guessing that doesn't really gel well with the $10k SALT deduction cap in place at the moment.
- NickM 5y agoI'm not sure if I see your point. The SALT deduction is completely separate from the deduction for charitable contributions. Maybe before the cap, you could argue that the true combined marginal rate was lower than 50% since the deduction for the state income tax would offset some of the federal tax, but a $10k deduction doesn't matter much to someone who's making enough to be in the top income brackets.