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> my actual change is net zero Really? From what I can find on the internet, CA state income taxes are usually in the 10% range for most folks. Are you reall

> my actual change is net zero Really? From what I can find on the internet, CA state income taxes are usually in the 10% range for most folks. Are you really paying 10% of your income for health insurance? I'm paying about 2.5% right now.

deleted 5y ago
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wbsss4412 5y ago
What your employer obliges you to pay directly is arbitrary. What matters is what percentage of your total compensation from your employer is healthcare costs. I highly doubt that number is only 2.5%.
- cagey 5y ago
  Data point: I just switched from FTE to unemployed (likely transitioning to retirement) and am leveraging COBRA to pay in full to retain my former employer's High Deductible Anthem PPO plan (plus dental plan and VSP) for a family of 4. The COBRA monthly pricetag is $2093. While employed (at this Fortune 300 company's San Jose, CA office), I was paying $425 per month out of pocket for the same set of plans.
  - wbsss4412 5y ago
    This would seem to line up well with this bls data from March of 2020 [1], which shows an average split of ~20-25% employee to 75-80% employer. [1] https://www.bls.gov/ncs/ebs/factsheet/medical-care-premiums-in-the-united-states.htm https://www.bls.gov/ncs/ebs/factsheet/medical-care-premiums-...
jdashg 5y ago
Most California income tax returns are AGI 47k or less[2], which we can round up to the top of that (6% marginal!) bracket: 48k. This next bracket, which probably starts at the 51 or 52%ile, is taxed by CA at "$1,672.87 plus 8% of the amount over $48,435."[1], which is about 3.45% actual state tax rate. The 9.3% marginal bracket stretches from 61k-313k. (260k is the 95%ile for CA tax returns, so minor-increase brackets above this one don't matter all that much) 10.3% is 313k-375k. 11.3% is 375k-625k. (99%ile is 680k) At 61k, at the end of the 8% bracket, the real tax rate is still just 4.40%. At 100k, 6.30% actual. At 150k, 7.30% actual. At 313k, 8.32% actual. At 375k, 8.67% actual. At 625k, still only 9.72% actual tax rate. We finally cross 10% actual at about $702k AGI. It's really, really important to keep in mind how much marginal rates mess with calculations, particularly when estimating. Also, Californians are statistically much poorer than people often expect, especially around here. [1]: https://www.nerdwallet.com/article/taxes/california-state-tax https://www.nerdwallet.com/article/taxes/california-state-ta... [2]: https://www.irs.gov/statistics/soi-tax-stats-adjusted-gross-income-agi-percentile-data-by-state https://www.irs.gov/statistics/soi-tax-stats-adjusted-gross-...

deleted 5y ago

[deleted]

wbsss4412 5y ago

What your employer obliges you to pay directly is arbitrary. What matters is what percentage of your total compensation from your employer is healthcare costs. I highly doubt that number is only 2.5%.

cagey 5y ago
Data point: I just switched from FTE to unemployed (likely transitioning to retirement) and am leveraging COBRA to pay in full to retain my former employer's High Deductible Anthem PPO plan (plus dental plan and VSP) for a family of 4. The COBRA monthly pricetag is $2093. While employed (at this Fortune 300 company's San Jose, CA office), I was paying $425 per month out of pocket for the same set of plans.
- wbsss4412 5y ago
  This would seem to line up well with this bls data from March of 2020 [1], which shows an average split of ~20-25% employee to 75-80% employer. [1] https://www.bls.gov/ncs/ebs/factsheet/medical-care-premiums-in-the-united-states.htm https://www.bls.gov/ncs/ebs/factsheet/medical-care-premiums-...

jdashg 5y ago

Most California income tax returns are AGI 47k or less[2], which we can round up to the top of that (6% marginal!) bracket: 48k. This next bracket, which probably starts at the 51 or 52%ile, is taxed by CA at "$1,672.87 plus 8% of the amount over $48,435."[1], which is about 3.45% actual state tax rate. The 9.3% marginal bracket stretches from 61k-313k. (260k is the 95%ile for CA tax returns, so minor-increase brackets above this one don't matter all that much) 10.3% is 313k-375k. 11.3% is 375k-625k. (99%ile is 680k) At 61k, at the end of the 8% bracket, the real tax rate is still just 4.40%. At 100k, 6.30% actual. At 150k, 7.30% actual. At 313k, 8.32% actual. At 375k, 8.67% actual. At 625k, still only 9.72% actual tax rate. We finally cross 10% actual at about $702k AGI. It's really, really important to keep in mind how much marginal rates mess with calculations, particularly when estimating. Also, Californians are statistically much poorer than people often expect, especially around here. [1]: https://www.nerdwallet.com/article/taxes/california-state-tax https://www.nerdwallet.com/article/taxes/california-state-ta... [2]: https://www.irs.gov/statistics/soi-tax-stats-adjusted-gross-income-agi-percentile-data-by-state https://www.irs.gov/statistics/soi-tax-stats-adjusted-gross-...