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> You pay 35% taxes so that's like 150 These are weird numbers. 35% of 250k is not 100k. It’s 87.5. And you shouldn’t be paying 35% on 250k. 35% is the top ta
by dpark 4y ago
> You pay 35% taxes so that's like 150
These are weird numbers.
35% of 250k is not 100k. It’s 87.5. And you shouldn’t be paying 35% on 250k. 35% is the top tax rate you pay. Most of your dollars will not be taxed at that rate.
At 250k of income you should actually be paying about $70k in taxes.
But yeah, you’re not retiring in 5 years unless you’re retiring somewhere exceedingly cheap.
- jsiaajdsdaa 4y agoYou are forgeting the 10% (aka $25,000) state tax in California which might be where this person is, which will bring them quite neatly to $95,000.
- dpark 4y agoIf you choose to work remotely to save money, you’re probably not going to stay in California.
- jsiaajdsdaa 4y agoThat is true, however only a handful of states have 0 income tax (making up for it instead with property tax), and most still have around 5-7%.
- anm89 4y agoThat's only federal. You could pay more than 100k on this.
- dpark 4y agoI know that pedantry is kind of a thing here, but people working remotely to save money aren’t generally living in a state like California. Also for the sake of pedantry, you still won’t be paying 35% even with California taxes. Nor could you pay over 100k even in California, so far as I can tell, unless taxes go up or there’s other income at play.
- anm89 4y agoCalifornia isn't the only state with state income tax. Most states have it. The pedantry is on your end.