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The problem (in my mind) with the UK tax is the huge steps in the progression and how quickly it hits 40% (in SWE salaries, at least). Go from 0% to 20% to 40%
by jermaustin1 1y ago
The problem (in my mind) with the UK tax is the huge steps in the progression and how quickly it hits 40% (in SWE salaries, at least). Go from 0% to 20% to 40% which feels a bit "steep" but it is better than going from 0% to 10% to 12% to 22% to 24% to 32% to 35% to 37%.
But since I was old enough to actually look at paycheck (paycheque?) calculators online, I've found that the UK tax rate for livable wages is actually fairly low.
To compare NYC to UK, £66k/yr = $90k/yr. In the UK, you would be taxed £17k ($23k), but that same salary living in NYC would be taxed $26k (£19k).
So NYC + Fed + NYS taxed together at a higher rate than the UK government (INCLUDING NI).
And $90k in NYC feels like WAY less than £66k somewhere Zone 4-6 in London with a similar commute.
- chgs 1y agoMost people struggle to Remember under 50k NI is a massive jump. Roughly the marginal bands are 32%/42%/62%/45%. Add 10% if you have kids between 60k and 80k, add 9-15% over 27% if you have student loan. The 62% marginal rate at 100k is a big kicker. Basically means most people pay far higher marginal rate between 50k and 120k than above 120k.
- throw0101b 1y ago> So NYC + Fed + NYS taxed […] A recent video on NYC, "The Absurd Lengths Billionaires Go to Not 'Live' in NYC": * https://www.youtube.com/watch?v=veJfMypXWtc https://www.youtube.com/watch?v=veJfMypXWtc