53% California Tax Rate?!

Aug 8, 2019 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, 2019 7
    • 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, 2019
    • Google NSFW4
      It goes to foreign interventionism abroad, overthrowing regimes, kickbacks to defense contractors and pork to congressmen's family and friends
      Aug 8, 2019
  • Stop voting blue
    Aug 8, 2019 8
    • Put down the talking points
      Aug 8, 2019
    • Google employee complaining about fat cats. The parody here is on point.
      Aug 9, 2019
  • Facebook / Eng mturtle
    Use https://www.paycheckcity.com/calculator/salary/. It is not 53%. Will be about 40%
    Aug 8, 2019 10
    • 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, 2019
    • Nope. There is a tax treaty to avoid double taxation.
      Aug 9, 2019
  • Infor / Other mloo04
    That.... doesn't sound right. Taxes are progressive and SS tax is only applied against the first $130k.
    Aug 8, 2019 1
    • OP
      Is there any way to know for sure? Online calculators are not accurate
      Aug 8, 2019
  • 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, 2019 3
    • Infor / Other mloo04
      Form an s-corp and expense the time spent on blind
      Aug 8, 2019
    • OP
      I have no idea about this, is it like starting a business?
      Aug 8, 2019
  • 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, 2019 2
    • OP
      is 48% what you pay right now? what is your income?
      Aug 8, 2019
    • 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, 2019
  • Cisco Alxosien
    No, using a calculator online, your effective tax rate is 36.84%. That doesn't include 401k though.
    Aug 8, 2019 2
    • OP
      Yeah, that calculator covers Federal and State tax, apparently there are other types like Social Security tax
      Aug 8, 2019
    • Use smartasset to calculate your Effective Tax Rate
      Aug 8, 2019
  • On average you'll pay 38-40% including Federal, State, Social, Medicare.

    You average hits 52% at about 10M income.
    Aug 8, 2019 0
  • Lyft jmac-21
    SF and in general California is crazy. Seattle is still reasonable.
    Aug 8, 2019 3
    • Microsoft MgWr05
      Can you please not wake people up? They will loot Seattle as well and make it another SF
      Aug 8, 2019
    • Qualtrics ❄️IsComing
      Washington has no state income tax. I want people to come to increase my property value. Lol
      Aug 8, 2019
  • New FOVU54
    How can i opt out of all benefits and not have to pay tax? These benefits seems expensive.
    Aug 8, 2019 1
    • Stop voting blue
      Aug 8, 2019

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