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!!
No, using a calculator online, your effective tax rate is 36.84%. That doesn't include 401k though.
Yeah, that calculator covers Federal and State tax, apparently there are other types like Social Security tax
Use smartasset to calculate your Effective Tax Rate
That.... doesn't sound right. Taxes are progressive and SS tax is only applied against the first $130k.
Is there any way to know for sure? Online calculators are not accurate
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.
is 48% what you pay right now? what is your income?
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.
Welcome to California
Stop voting blue
That won't help much, Republican's tax cuts are mainly geared toward the rich
Sure it will. State level policies are mostly at fault.
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
SS ends at $118k and doesn’t usually count in broad tax calculation. Effective taxes should be upper 20s and marginal in low 40s
SF and in general California is crazy. Seattle is still reasonable.
How much is it in Seattle?
Can you please not wake people up? They will loot Seattle as well and make it another SF
Use https://www.paycheckcity.com/calculator/salary/. It is not 53%. Will be about 40%
That's just the income tax (State + Federal)
No it's not. It includes payroll and state income tax.
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)
This is simply ridiculous! Where does this money go? What kind of benefits do Americans get to make this reasonable?
Thanks for the advice, is there any source that you would recommend to read about this?