Yes. Was logging in to share the same comment.
When I was an engineer in NYC my taxable income was about the following: 1. ~35% federal 2. ~8% state 3. ~3% city
Don't forget sales tax!
When I was an engineer in NYC my taxable income was about the following: 1. ~35% federal 2. ~8% state 3. ~3% city
Don't forget sales tax!
https://smartasset.com/taxes/income-taxes
EDIT: Aren't state and local taxes also deductible from federal income taxes? I'm certainly not a tax expert, so correct me if I'm wrong.
Yes, but the Trump tax changes put a $10,000 cap on this deduction, which is significantly lower than the standard deduction. Combined with low mortgage interest and the lower cap for new mortgage balances whose interest is deductable, a lot of people went to the standard deduction.
That's not a quibble at all, it's a very important point. The number of people who confuse "tax bracket" with "effective tax rate" is regrettably quite large.
In order to hit 8% (8.82%) in NYS in 2015, you needed to make a little over a million dollars a year (single) or 2 million (joint).
The next lowest is 6.85%, for 212k single, 318k joint.
For federal to hit 35%, you need to make 411k (single or joint.. which makes no sense).
So your numbers more or less stand up to scrutiny for marginal income, but I would guess not even close to that for effective tax rate. I don't think it's fair to present your marginal tax rate as "your tax rate" in a discussion about how much of your income you get to keep. That's even more so when it's before you account for deductions.
Sales tax, gas tax, land tax, etc all come later. They can be significant, but aren't part of the discussion of take home salary.
To look at it from another point of view... If _all_ the money you made came from long term capital gains, the taxes you pay on it would be based on totally different tax rules. Capital gains taxes are certainly impacting how much you "spend" on taxes, but they don't impact how much of your "salary" goes to taxes.... because you don't have a salary.