What % of your gross monthly income goes to state+fed taxes?

[IronWing]

33% is my effective rate, the marginal is ~45%.

Does that include healthcare?

 

[biostud]

Does that include healthcare?

It includes everything over here

 

[*kjm]

Dont forget Gas, sin, utilities, land....... on and frickin on taxes.

 

[Elganja]

too much

 

[clamum]

My gross bi-weekly is $2800, and net take home is about $2020. So about 28% unless I'm mistaken. I also contribute to a 401(k).

 

[Dr. Detroit]

My effective tax rate to the Fed + State last year was roughly 43% -

Add in FICA/Medicare/SalesTax/Gas Tax/Property Tax and I was well over 50%.

 

[JoLLyRoGer]

My effective tax rate to the Fed + State last year was roughly 43% -

Add in FICA/Medicare/SalesTax/Gas Tax/Property Tax and I was well over 50%.

I'm right about there myself. I've still not make one penny for me yet this year if you want to look at it that way.

 

[rh71]

damn I never really thought about it and just thought it was whatever tax bracket you're in based on income (single or married filing jointly). So how is it really determined along side of that? 25%, 28% bracket, etc.

This isn't our biggest concern though - we get raped by property/school taxes here and that figure is the real eye-opener. Even people who live in dinky 1300sqft ranches pay $10k/yr.

 

[IronWing]

damn I never really thought about it and just thought it was whatever tax bracket you're in based on income (single or married filing jointly). So how is it really determined along side of that? 25%, 28% bracket, etc.

See here for brackets.

Say you are single and earn $100,000 in taxable income.

The first $8,925 are taxed at 10%.
From $8,925 to $36,250 gets taxed at 15%.
From $36,250 to $87,850 gets taxed at 25%.
From $87,850 to $100,000 gets taxed at 28%.

Keep in mind that this is taxable income, calculated after accounting for exemptions and deductions such as 401K, HSA, health premiums, standard deduction, personal exemptions, mortgage interest deduction, etc.

Edit: 2013 brackets. Clite used 2014.

 

[CLite]

damn I never really thought about it and just thought it was whatever tax bracket you're in based on income (single or married filing jointly). So how is it really determined along side of that? 25%, 28% bracket, etc.

This isn't our biggest concern though - we get raped by property/school taxes here and that figure is the real eye-opener. Even people who live in dinky 1300sqft ranches pay $10k/yr.

The part of your income that is within each bracket is taxed at that brackets rate. for instance if you earn 89k.....

Your first 9,075 dollars are taxed at 10% = $907.5
Your next income from 9,075 to 36,900 is taxed at 15% = $4,173.75
Your final income (89k-36,900) is taxed at 25% = $13,025

Total tax = $18,106.25

Effective tax = 20.3% even though you are in a 25% bracket.

*Throw in a standard deduction (6,100 single) and you are down to 18.6% even while being in a 25% bracket.

 

[dave_the_nerd]

33% is my effective rate, the marginal is ~45%.

The top marginal tax rate is only 39.6%. Fire your tax guy.

Oh, wait, your yerpian. Never mind.

 

[Brian Stirling]

My net (before medical etc.) is 67.5% of my gross so all income taxes total 32.5%.


Brian

 

[BoberFett]

30%

 

[Engineer]

I think many of you are quoting your marginal rates and not your actual burden rate.

 

[OverVolt]

35% combined, not sure on the exact breakdown.

Ditto

 

[OverVolt]

I think many of you are quoting your marginal rates and not your actual burden rate.

I think some of us have higher state taxes

 

[dave_the_nerd]

Ditto

Yeah, 35% here too.

 

[Imp]

See here for brackets.

Say you are single and earn $100,000 in taxable income.

The first $8,925 are taxed at 10%.
From $8,925 to $36,250 gets taxed at 15%.
From $36,250 to $87,850 gets taxed at 25%.
From $87,850 to $100,000 gets taxed at 28%.

Keep in mind that this is taxable income, calculated after accounting for exemptions and deductions such as 401K, HSA, health premiums, standard deduction, personal exemptions, mortgage interest deduction, etc.

Edit: 2013 brackets. Clite used 2014.

I don't think this is common knowledge... A friend of mine, who is relatively savvy on life-related things, and in her 40s, isn't even aware. And I've heard way too many times from people at work saying, "there's no point in earning more because your just go up a tax bracket and the gubment takes more"...

I really shouldn't be surprised given how financially clueless a lot of people are. It's all laid out on the last or second last page of tax returns on Canada showing the final calculation of your taxes due.

 

[Wonderful Pork]

23.6% combined not counting health insurance or 401k.

My net pay is 55% of my gross, so 45% of money is gone before I even see it (counting health, disability, car, home insurance, and 401k, which hopefully I will see in the future.) Ouch.

 

[Red Squirrel]

Don't know if I'm looking at the right numbers here, but my gross was 75k last year, taxable income was 70k (not sure what the other 5k is, union dues and other stuff like that I guess?) and I paid 14k provincial taxes and 10k federal. So 24k total in taxes out of 75k makes 32%, I think? (24/75)*100? Math is not my strong point.

I did get a 1k refund though, so that probably slightly changes those numbers. I don't know if I'd actually just deduct that from the 24k or if there's other calculations done.

And this is why I'm not an accountant.

 

[Engineer]

I just looked at our (my wife and mine) 2013 taxes (a normal year) and these are the breakdowns (% total income):

Federal income tax: 7.46%
FICA (SS + Medicare): 7.40% (had a little investment income not subject to SS/Medicare).
Local Income taxes: 1.67%
State Income tax: 4.03%


These are the real 'burden' yearly rates, not the 'marginal' rates.

2 kids (one over 18 and one under 17 (for tax credit purposes)). Standard deduction, one carry-over stock loss, part of a college tuition credit.

I suspect the burden rate of many people is far lower than what they are reporting. I've had people tell me that they pay 40% in payroll and income taxes (not sales, not property, etc....actual income and payroll taxes). When I took their real paid taxes and divided by their income, not a single person in the group paid over 19% effective rate.

 

[BoberFett]

I think many of you are quoting your marginal rates and not your actual burden rate.

No, that's what I paid in for 2013 all told, state, fed, ss, Medicare.

 

[Engineer]

No, that's what I paid in for 2013 all told, state, fed, ss, Medicare.

Your's wasn't in question. Too many people quoting rates right out of the marginal tax (state and federal) rates here from what I can tell.

 

[brianmanahan]

There are some ballers if people's effective federals are north of 30.

i think %33 marginal fed qualifies as baller

 

[Imp]

Don't know if I'm looking at the right numbers here, but my gross was __ last year, taxable income was __ (not sure what the other __ is, union dues and other stuff like that I guess?) and I paid 14k provincial taxes and __ federal. So __ total in taxes out of __makes 32%, I think? __*100? Math is not my strong point.

Isn't the Federal deductible like $9k?

If you're assuming $5k is union dues, I'm assuming you don't have ANY form of alternative income (e.g. interest from a bank account) and don't buy RRSPs.