53% California Tax Rate?!

Aug 8 65 Comments

I recently accepted an offer from UBER San Fransisco. My TC will be 260k for the first two years and 235k after that. They set me up with a Deloitte team for my US taxes and they mentioned that with my income the overall taxes will be 53%. They said it will be in the 35% bracket and plus other taxes like social security taxes and etc it will be about 53%! Is this really true? Can someone shed light on this, please?

I always thought Ontario (where I live right now) has high taxes which seems sort of reasonable considering all the benefits we have (Health Care for example). If 53% is true can someone explain why is it so high?

Not even mentioning that if you rent a property in Canada you'll be taxed (almost) twice!!

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TOP 65 Comments
  • Intuit booperino
    Yes - welcome to America.

    Focus on how you can reduce your tax reliability through business and investments (besides purchasing a home for personal use - that’s a liability)
    Aug 8 7
    • Infor / Other mloo04
      Unfortunately California subsidizing the rest of the country
      Aug 8
    • Microsoft / Mgmt Dunph
      Trump takes California's tax revenue to pay off farmers that lost money from his shitty trade war 😒
      Aug 8
    • Clover Health nQgO47!!Pa
      Welcome to California where we build multibillion dollar trains to nowhere, expensive infrastructure that fails,excessive amounts of government employees with fat pensions, and millions of people on that teet who don’t want to work. Don’t let the liberal SJW racist white savior types get you down. It’s a beautiful state but you gotta pay pay pay for all them social programs.
      Aug 8
    • New FOVU54
      I have a theory that there are powerful forces at play to keep the status quo. Middle class has to stay middle class. If the middle class starts getting richer, then thats actually increasing the bar to be considered upper class. So taxes are just a way to make sure the middle class stays where they are.
      Aug 8
    • Google NSFW4
      It goes to foreign interventionism abroad, overthrowing regimes, kickbacks to defense contractors and pork to congressmen's family and friends
      Aug 8
  • Oath Atinlay2
    Stop voting blue
    Aug 8 8
    • Infor / Other mloo04
      Federal taxes are absolutely a lion share of his tax footprint.
      Aug 8
    • Oath Atinlay2
      Paying taxes is not a virtue
      Aug 8
    • Google / Eng LevelZ
      Last time I heard republicans gave tax breaks to companies. Which straight went to fat cats wallets.
      Aug 8
    • Oath Atinlay2
      Put down the talking points
      Aug 8
    • Google employee complaining about fat cats. The parody here is on point.
      Aug 9
  • Facebook / Eng mturtle
    Use https://www.paycheckcity.com/calculator/salary/. It is not 53%. Will be about 40%
    Aug 8 10
    • Spotify / Eng qbeforeu
      Deloitte sounds like they are adding the tax rates together, which makes them sound real dumb
      Aug 8
    • OP
      No, they said it's 53% overall. they mentioned all types of taxes it includes but I forgot some of them. But does it really matter? At the end of the day, I only wanna know how much will be in my bank account to plan my life with it.
      Aug 8
    • Facebook / Eng mturtle
      You will have about 60% of your compensation after tax. I mentioned that already. They are many tools (I linked one), you can use to confirm this.
      Aug 8
    • Google / Eng
      grx

      Google Eng

      PRE
      Microsoft
      BIO
      14 yoe engineer in tech
      grxmore
      I think you will get double taxed for 1st year in canada, and US. So higher rate
      Aug 8
    • Nope. There is a tax treaty to avoid double taxation.
      Aug 9
  • Infor / Other mloo04
    That.... doesn't sound right. Taxes are progressive and SS tax is only applied against the first $130k.
    Aug 8 1
    • OP
      Is there any way to know for sure? Online calculators are not accurate
      Aug 8
  • eBay
    seat

    eBay

    BIO
    Why did you click on me 😡
    seatmore
    If you’re smart, you can get your effective tax rate down to 28%
    Aug 8 3
    • Microsoft MgWr05
      How do u do that?
      Aug 8
    • Infor / Other mloo04
      Form an s-corp and expense the time spent on blind
      Aug 8
    • OP
      I have no idea about this, is it like starting a business?
      Aug 8
  • Credit Karma du312$7!;
    The tax bracket is progressive you only pay 35% on the top of the money. You'll probably pay like 45-48% in taxes. Canada may have healthcare but they also don't have 100s of military bases around the world to pay for.
    Aug 8 2
    • OP
      is 48% what you pay right now? what is your income?
      Aug 8
    • Lyft jmac-21
      Yes. 50% is likely what you will pay in income related taxes for under $350k earning.

      There is 10% sales tax on everything you spend. + Rents are high.
      Aug 8
  • Cisco Alxosien
    No, using a calculator online, your effective tax rate is 36.84%. That doesn't include 401k though.
    Aug 8 2
    • OP
      Yeah, that calculator covers Federal and State tax, apparently there are other types like Social Security tax
      Aug 8
    • Use smartasset to calculate your Effective Tax Rate
      Aug 8
  • Google The Old Nite
    On average you'll pay 38-40% including Federal, State, Social, Medicare.

    You average hits 52% at about 10M income.
    Aug 8 0
  • Lyft jmac-21
    SF and in general California is crazy. Seattle is still reasonable.
    Aug 8 3
    • OP
      How much is it in Seattle?
      Aug 8
    • Microsoft MgWr05
      Can you please not wake people up? They will loot Seattle as well and make it another SF
      Aug 8
    • Qualtrics ❄️IsComing
      Washington has no state income tax. I want people to come to increase my property value. Lol
      Aug 8
  • New FOVU54
    How can i opt out of all benefits and not have to pay tax? These benefits seems expensive.
    Aug 8 1
  • Walmart tBOR65
    Welcome to California
    Aug 8 0
  • Amgen Fin4eng
    SS ends at $118k and doesn’t usually count in broad tax calculation. Effective taxes should be upper 20s and marginal in low 40s
    Aug 8 0
  • Google / Eng
    BallsDeep

    Google Eng

    BIO
    I think we can all agree, mainstream media is a cancer on our society.
    BallsDeepmore
    I think OP is lumping all mandatory payments into one "taxes" umbrella. Still, that's too high. Generally, the govt takes 41-43% of my paycheck in silicon valley. I doubt SF city proper has 10% in additional taxes. Perhaps they're referring to the tax rate for your bonuses? That's generally higher than your salary and stocks.

    TC: 300k
    Aug 8 4
    • Oath Atinlay2
      Taxes are taxes. Taxation is theft
      Aug 8
    • Google / Eng
      BallsDeep

      Google Eng

      BIO
      I think we can all agree, mainstream media is a cancer on our society.
      BallsDeepmore
      I agree, but some people are saying it should only be 35%, but that's just the income tax.
      Aug 8
    • Oath Atinlay2
      Correct, they try and sugar coat it to make them feel better about paying taxes. By the time you add up property taxes and everything, it’s up there!

      Meanwhile these people keep voting for people and policies who do nothing but raise taxes.
      Aug 8
    • OP
      41-43% from your paychecks but, what percentage of you TC do you pay as tax overall? Have you calculated that before?
      Aug 8
  • I just moved here and couldn’t believe it either. If there were good public services I wouldn’t be pissed, but there’s so little... SF homelessness is crazy

    We’re financing wars
    Aug 8 1
    • Uber / Eng mH7bSe
      good public service for they, not for you.
      Aug 9
  • Microsoft techlead*
    No no no. SS taxes is capped at $100k-ish. If you calculate the effective marginal tax rate (federal + SS taxes), it's quite flat and about 30%. Then add on CA taxes and marginal rate will be at most 40%-ish
    Aug 8 0
  • Uber / Eng mH7bSe
    Tax is not for your benefit.
    Tax is for their benefit.
    If you work and pay tax, you are already excluded.
    Aug 8 0
  • Visa Dtrm86
    Then you get to pay 8.5-9.5% sales tax on everything you buy!
    Sep 6 0
  • Lyft wXfl07
    The marginal rate might be that high. 36% marginal + 11% CA + 7.65% social security (the employer pays another 7.65% off-the-books). But your gross tax rate will on $260 will be like 30%.

    When I worked in Canada my marginal rate was 59% when I hit C$60k of income. That totally BLOWS. In the USA it doesn't hit 53% until you are making US$200k.. And just remember that there is no word in the Canadian language for US$200k of income. NONE!
    Aug 10 0
  • Uber / Eng itsdara
    That's the top marginal tax. Final rate is much lower since the first 12k/24k income is tax-free etc...
    Aug 8 0
  • New Gned33
    No this is all wrong. Social security tax is 6.2 percent on first 131K. Then zero. The thresh hold increases each year. There is 1.45 percent Medicare tax on all earned income. All earned income in excess of 200K is hit with 0.9 percent Medicare sur tax.

    Top federal income bracket is 37 percent. That bracket starts well after SS tax stops. Top CA income tax bracket is 12 percent. This top marginal tax rate is 37 + 12 + 1.45 + 0.9 = 51.35.
    Sep 1 0

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