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Re:Does It Make Sense for Programmers to Move to the Bay Area? by jrm415 on Wednesday December 14, 2016 @02:41PM (#13179011)
If you move to CA, you need to pay state tax on your entire earnings, not just your raise. 13.3% of 140k is more than 18k, which is certainly significant.
Re:Does It Make Sense for Programmers to Move to the Bay Area? by ammon on Wednesday December 14, 2016 @02:45PM (#13179048)
You're totally correct and I am wrong :)
Re:Does It Make Sense for Programmers to Move to the Bay Area? by EdJiang on Wednesday December 14, 2016 @05:55PM (#13180485)
I believe you can deduct state from federal tax, which would save ~2.5% in marginal tax. In addition, social security phases out at ~120k so that's another 7.5% savings. So the difference is almost a wash if I understand correctly?
Re:Does It Make Sense for Programmers to Move to the Bay Area? by seattlefreeze on Wednesday December 14, 2016 @08:04PM (#13181393)
Don't forget about AMT. That usually throws a wrench in things.

https://en.wikipedia.org/wiki/Alternative_minimum_tax

Re:Does It Make Sense for Programmers to Move to the Bay Area? by valleyer on Thursday December 15, 2016 @12:11AM (#13182598)
Correct. Specifically, it disallows deduction of state/local taxes from your federal taxable income.
Re:Does It Make Sense for Programmers to Move to the Bay Area? by wwweston on Wednesday December 14, 2016 @03:13PM (#13179248)
Wait -- is the assertion here that California state tax rates aren't marginal? Because I don't think that's true.
Re:Does It Make Sense for Programmers to Move to the Bay Area? by snovv_crash on Wednesday December 14, 2016 @03:36PM (#13179423)
The difference is that WA doesn't have state income tax.
Re:Does It Make Sense for Programmers to Move to the Bay Area? by jrm415 on Wednesday December 14, 2016 @03:24PM (#13179335)
CA taxes are marginal. My math was overly simplistic, because I only wanted to illustrate that you needed to pay CA taxes on your full salary.