If you're making 100K in California, your marginal tax rate is:
- Federal: 24%
- State: 9.3%
- FICA: 7.65% (6.2% social security, 1.45% medicare)
- SDI: 1%
This gets you to 42%. Your employer matches the FICA payments too, so that's closer to 50% of your take-home pay.
Once you make enough to pay off the regressive FICA taxes ($142K) you get bumped back down to "just" the mid-high 30% range briefly, until you hit $163K, then its back up to 40% again.
- Federal: 24%
- State: 9.3%
- FICA: 7.65% (6.2% social security, 1.45% medicare)
- SDI: 1%
This gets you to 42%. Your employer matches the FICA payments too, so that's closer to 50% of your take-home pay.
Once you make enough to pay off the regressive FICA taxes ($142K) you get bumped back down to "just" the mid-high 30% range briefly, until you hit $163K, then its back up to 40% again.