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California total taxes on a $100k income is 28% --- https://smartasset.com/taxes/california-tax-calculator#a3rz8Ar7SN https://smartasset.com/taxes/california-ta

by ta1243 4y ago

California total taxes on a $100k income is 28% --- https://smartasset.com/taxes/california-tax-calculator#a3rz8Ar7SN https://smartasset.com/taxes/california-tax-calculator#a3rz8... UK it's 24% -- https://listentotaxman.com/?ingr=79000 https://listentotaxman.com/?ingr=79000

dragonwriter 4y ago
1. The California calculation includes state and federal income and employee share of federal payroll taxes; the UK site appears to include only income tax [see EDIT] (the UK has more complicated payroll tax rates, but each of the employee and employer share can be close to as much as the combined US rate of 14.85% below the Social Security cap) [1]. 2. The UK has much higher consumption taxes than the US (including California) with a 20% VAT and gas taxes close to $3/gallon, compared to (in California) a maximum of 10.25% sales tax and $0.725/gallon state+federal excise tax on gas. [1] https://www.gov.uk/national-insurance-rates-letters https://www.gov.uk/national-insurance-rates-letters [EDIT: Actually, the UK calculation does include “National Insurance”, which is the payroll tax equivalent, but it is after the "total tax due" that the parent used for the comparison. With the employee share National Insurance payment included, the UK total is 30%, higher than the CA amount even before considering the impacts of higher consumption taxes and the higher employers-share National Insurance.]
woobar 4y ago
Your links show that take home pay is higher in California ($72K vs £55K/$69K), despite higher tax rate.
- dragonwriter 4y ago
  This is a result of including employee-share payroll tax (FICA) in the California tax total, but not including the UK equivalent (employee share of “National Insurance”), which is listed after the “total tax due”, as part of the UK tax total.
  - ta1243 4y ago
    Broadly equivelent to employee part of healthcare contributions in the us

by ta1243 4y ago

dragonwriter 4y ago

1. The California calculation includes state and federal income and employee share of federal payroll taxes; the UK site appears to include only income tax [see EDIT] (the UK has more complicated payroll tax rates, but each of the employee and employer share can be close to as much as the combined US rate of 14.85% below the Social Security cap) [1]. 2. The UK has much higher consumption taxes than the US (including California) with a 20% VAT and gas taxes close to $3/gallon, compared to (in California) a maximum of 10.25% sales tax and $0.725/gallon state+federal excise tax on gas. [1] https://www.gov.uk/national-insurance-rates-letters https://www.gov.uk/national-insurance-rates-letters [EDIT: Actually, the UK calculation does include “National Insurance”, which is the payroll tax equivalent, but it is after the "total tax due" that the parent used for the comparison. With the employee share National Insurance payment included, the UK total is 30%, higher than the CA amount even before considering the impacts of higher consumption taxes and the higher employers-share National Insurance.]

woobar 4y ago

Your links show that take home pay is higher in California ($72K vs £55K/$69K), despite higher tax rate.

dragonwriter 4y ago
This is a result of including employee-share payroll tax (FICA) in the California tax total, but not including the UK equivalent (employee share of “National Insurance”), which is listed after the “total tax due”, as part of the UK tax total.
- ta1243 4y ago
  Broadly equivelent to employee part of healthcare contributions in the us