Re:Landlords are trying not to rent to startups in San Franc...
by kspaans on Thursday July 30, 2015 @10:19PM
(#9979580)
Wowza! So at $140k/year the effective tax rate in CA is around 40%? (Or maybe my math is bad.)
EDIT: And some that may not all be income tax? E.g. in Ontario one pays fed income tax, provincial income tax, Canada Pension Plan, Employment Insurance, and a few other I may have forgotten. In London, UK one pays income tax, national insurance, and council tax (property tax paid by property occupiers).
Re:Landlords are trying not to rent to startups in San Franc...
by owyn on Friday July 31, 2015 @12:31AM
(#9979931)
At that income level, the federal tax is %28 and CA is %9.3, so about %37 yeah. Max is 33+12 = %45. There's also ~9% sales tax in most parts of california but every time you go out you better tip %20.
And for all that, we get to pay for our own health care and retirements too!
Re:Landlords are trying not to rent to startups in San Franc...
by kspaans on Friday July 31, 2015 @01:28AM
(#9980070)
I said effective tax rate not marginal tax rate. It looks like US and CA income tax has brackets, so even if your marginal rate is 37% you won't be paying that rate on 100% of your income.
That said, I'd believe that if you include expenses like health care your net pay would be ~40% less than your gross pay. :P
Re:Landlords are trying not to rent to startups in San Franc...
by klipt on Friday July 31, 2015 @03:52AM
(#9980499)
Don't forget social security taxes - flat 6.2% on your first $118.5k of earnings: http://www.ssa.gov/pubs/EN-05-10003.pdf
Assume you're making 140k, after 10% retirement contribution and CA taxes leaves about $6400 per month net. With the average 1 bd apartment at $3200 now that's half your take home wage. Leaving $3200 per month is $800 / week. Or $20.00 an hour at 40 hours. Given typical start-up hours and not even counting the typical food/internet/car expenses. So, if you want to look at it as an all-in after expenses, yeah, even that kind of salary can feel like minimum wage. The economics of minimum wage here in SF are a LOT worse...