Does California's 13% income tax include federal tax? (Murrieta: home, purchase)

[2sleepy]

Originally Posted by USDefault

But at an AGI of $51k, after deductions, they pay a whopping 9.3% in CA income tax. Even at $40k (after deductions) you're paying a stunning 8% of your income to this bankrupt state. That is a lot of money to middle class wage earners.

And these sky high income taxes are on top of all the other highest-in-the-nation taxes, including California sales taxes (some of which are as high as 9.75%), California gasoline sales taxes and gas excise taxes, and the outrageous amounts people pay for water and electricity in this state.

The tax and fee burden in California is atrocious if you are a young person or young family just starting out, because not only will all of these taxes and fees siphon money out of your accounts, you then also have to fund the astronomical cost-of-living. California's big cities have some of the most expensive real estate prices in the United States.

California, a land of subjugated renters, who will never, ever own their homes, fund their retirements, pay for their kids college tuition, or become financially independent.

This was posted earlier in this thread:

1% on the first $7,850 of taxable income.
2% on taxable income between $7,851 and $18,610.
4% on taxable income between $18,611 and $29,372.
6% on taxable income between $29,373 and $40,773.
8% on taxable income between $40,774 and $51,530.
9.3% on taxable income between $51,531 and $263,222.

What that means is that only the portion of your salary over $40,774 would be subject to 8% tax so your marginal rate would be 8%, and your actual tax rate would be 3.57%

https://smartasset.com/taxes/califor...tor#TeqZCayBMO

An AGI of $40,000 would have a marginal tax rate of 6% and an actual tax rate of 2.68%

Those numbers are neither stunning or whopping or sky high. It would behoove you to take a few moments and learn what a marginal tax rate is.

[2sleepy]

Originally Posted by DRBXGOLD

Or is it just state tax? If so how much is the federal tax on top of that?

Put your estimated adjusted gross income into this calculator it will give your total tax obligation, state, federal and FICA https://smartasset.com/taxes/califor...tor#TeqZCayBMO

[Gentoo]

Originally Posted by shooting4life

Oregon doesn't have sales tax to take almost another 10%. Plus all other government fees are lower.

The problem isn't California high state income tax, it is California's high state income tax plus high sales tax, plus high every other government fee (DMV, gas tax, etc). Many people claim California has low property tax, which is true for those who have lived in their house for many decades, but most end up paying more in total dollars than those in other states with high svective property tax rates because housing is exceptionally high.

California's DMV fees still aren't as high as other states. To renew or change a driver license over from another state is 31 dollars. In Washington State it's 80 dollars.

[2sleepy]

Originally Posted by USDefault

Well yeah. If you're not making any money, you're not paying outrageous income taxes -- which is exactly what those charts and graphs show. And look at the assumptions from which the tables are derived:


A California home at $178k? LOL LOL LOL. Multiply by four or five, and then perhaps you're in the ballpark of reality. A $54k family income in California? Your family is living in poverty. You'll need to triple it for any of California's major metros if you want to buy a home and save anything for retirement. And the "annual spend" at the U.S. median income? Give me a break. It is utterly impossible to achieve these numbers in California. You're either in a shelter or at the food bank three times a week. And based on these numbers, you will never own a home in California, pay for your kids' college education, or put enough away for retirement. Following these median numbers, you are beyond screwed in California, sentenced to a lifetime of skyhigh rent increases, living off meager Social Security checks and ingesting cat food. Fact.

But if you are a productive citizen -- an actual earner in a real job -- you are utterly screwed by California taxes and fees and costs. Proposition 13 is your only saving grace, and even that is debatable given the sky-high cost of real estate; you need to stay in your home a long time before you garner the benefits of reduced property tax increases.

That includes a lot of exaggeration and misinformation.

[capoeira]

Originally Posted by 18Montclair

I'd rather the federal tax rate was a flat 10% and the states' had the higher rate.

That's the Ted Cruz tax plan!

https://www.tedcruz.org/tax_plan/

"The current seven-tiered income-tax rates for individuals will collapse into a single, low rate: 10 percent"

[shooting4life]

Originally Posted by Gentoo

California's DMV fees still aren't as high as other states. To renew or change a driver license over from another state is 31 dollars. In Washington State it's 80 dollars.

Wait till you register your vehicles.

I pay over $400 a year for a 17 year old vehicle that gets only 4-5k miles put on it annually.

[2sleepy]

Originally Posted by shooting4life

Wait till you register your vehicles.

I pay over $400 a year for a 17 year old vehicle that gets only 4-5k miles put on it annually.

What kind of vehicle? Registration fees for a 16 year old SUV are $103 a year.

[JGC97]

Originally Posted by 2sleepy

What kind of vehicle? Registration fees for a 16 year old SUV are $103 a year.

Sounds about right. I drive a '97 Jeep Grand Cherokee and my registration is $119 this year. It went up ten bucks from last year. Glad I don't drive a new car, though.

[RMESMH]

Originally Posted by shooting4life

Oregon doesn't have sales tax to take almost another 10%. Plus all other government fees are lower.

The problem isn't California high state income tax, it is California's high state income tax plus high sales tax, plus high every other government fee (DMV, gas tax, etc). Many people claim California has low property tax, which is true for those who have lived in their house for many decades, but most end up paying more in total dollars than those in other states with high svective property tax rates because housing is exceptionally high.

Not to mention that voters in different California jurisdictions sometimes approve various local ballot measures that add an item (line) to the property tax bill. IIRC, CD moderator Ultrarunner posted that he has 17 different items on his residence property tax bill in Oakland, and those extra items jack up his effective rate at least an additional 0.7 % from the base.

[Gentoo]

Originally Posted by shooting4life

Wait till you register your vehicles.

I pay over $400 a year for a 17 year old vehicle that gets only 4-5k miles put on it annually.

Are you using a Freightliner for private use? Good lord.