Tell us your tax rate!!

[andy753]

I make roughly $70,000 per year in Boise, Idaho, the great wonderful USA. My tax rate is roughly 28%, and although I would like my rate to be 5%, I'm fine where I'm at.

Please share your tax rate! (I understand if you don't want to share your annual pay)

 

[Mr. H.]

I think my tax came out to 30% of what is listed as "taxable income" on my 1040.

 

[Politico]

Neither of you are paying 28% after deductions.

 

[Geaux4it]

13%

-Geaux

 

[Spiderman]

The tax bracket and your actual tax are 2 different things.

My effective tax rate is about 22%

 

[SteadyMercury]

I make roughly $70,000 per year in Boise, Idaho, the great wonderful USA. My tax rate is roughly 28%

If you are single and taking std deduction on 70k for fed your marginal tax rate is 25% and your effective tax rate is probably about 15-16%.

 

[MHunterB]

I'll have to get back to you on that, but I think we've been running about 10% of income-less-retirement-savings...... Of course, we've been paying over$10,000/year in tuition for five or 6 years, so that kind of distorted the picture.

Of course that's just for income taxes to the IRS: the state takes about 5% (no real deductions available), and then there's Social Security, which is what, 6.2% of every dollar.... So our 'actual' percentage is around 20%

 

[HenryBHough]

Having left California some years ago upon retirement the total tax bite was 47%. Now before you get you liberal knickers in a twist, that included:

Federal Income Tax
Federal Capital Gains Tax (which, capped at 15% lowered the grand percentage total)
State Income Tax
Local Property Tax
County Fire District Property tax
Irrigation district Property tax
Motor vehicle tax
Mandatory "Smog" test fee
State sales tax
Local sales tax

If I also took the effort to figure in stuff like Social Security and self employment taxes (on some of the income) then the percentage would have been somewhat higher.

California - indeed a good place ----- to be FROM.

 

[OnePercenter]

Since I made $1.00 last year, my personal effective rate is $0.00. Thanks to Republican tax rules, my portfolio (savings) which pays my living expenses is a trust/Nevada corporation which has an effective rate of 3%.

 

[oldfart]

Absolutely zip. For years I was in the 25% or 28% brackets, but with retirement I can structure things to stay in the zero bracket. That will change at age 70.5 with RMD. And I'm thinking of converting enough retirement accounts to the Roth side to use up the 10% and 15% brackets.

 

[OnePercenter]

Absolutely zip. For years I was in the 25% or 28% brackets, but with retirement I can structure things to stay in the zero bracket. That will change at age 70.5 with RMD. And I'm thinking of converting enough retirement accounts to the Roth side to use up the 10% and 15% brackets.

Your 25% or 28% brackets is deceptive. What was your effective rate?

 

[HenryBHough]

I'm about to sell off a capital asset. If I get full market price I can deduct the cost of sale (fixing-up, commissions) from the gross. But I also have to add back in the "recapture" of depreciation over the years. Doing it that way will yield a modest profit which will be taxed at 15%.

But if I, instead, donate the asset to a charity I can take the full market value of the property as a deduction against other income. That would allow me to entirely cash out a major retirement account in the same year and apply that deduction against that. Result? Over a period of 2-3 years (credit will be too great to apply in a single year), I can avoid taxes entirely on the retirement cashout.

Then the charity can sell the property for whatever they want - price it low to get a quick sale - and they'll be in by whatever they get which is something they never previously had and it will not impact the donation value I declared since the ultimate sale price is out of my control.

At the end of the day I'll have a few bucks less than I might have had through just selling low myself but I'll have the satisfaction of using money I don't need to help some charity whose work I value while denying a chunk of money to Obama & Associates.

 

[OnePercenter]

Having left California some years ago upon retirement the total tax bite was 47%. Now before you get you liberal knickers in a twist, that included:

Federal Income Tax
Federal Capital Gains Tax (which, capped at 15% lowered the grand percentage total)
State Income Tax
Local Property Tax
County Fire District Property tax
Irrigation district Property tax
Motor vehicle tax
Mandatory "Smog" test fee
State sales tax
Local sales tax

If I also took the effort to figure in stuff like Social Security and self employment taxes (on some of the income) then the percentage would have been somewhat higher.

California - indeed a good place ----- to be FROM.

State Income Tax
Local Property Tax
County Fire District Property tax
Irrigation district Property tax
Motor vehicle tax
State sales tax
Local sales tax
Half of the self employment tax

Are deductible on your Federal return. So let's see some effective tax numbers.

 

[HenryBHough]

Having left California some years ago upon retirement the total tax bite was 47%. Now before you get you liberal knickers in a twist, that included:

Federal Income Tax
Federal Capital Gains Tax (which, capped at 15% lowered the grand percentage total)
State Income Tax
Local Property Tax
County Fire District Property tax
Irrigation district Property tax
Motor vehicle tax
Mandatory "Smog" test fee
State sales tax
Local sales tax

If I also took the effort to figure in stuff like Social Security and self employment taxes (on some of the income) then the percentage would have been somewhat higher.

California - indeed a good place ----- to be FROM.

State Income Tax
Local Property Tax
County Fire District Property tax
Irrigation district Property tax
Motor vehicle tax
State sales tax
Local sales tax
Half of the self employment tax

Are deductible on your Federal return. So let's see some effective tax numbers.

Indeed they are and those were taken into account in preparing the federal return used in calculating the overall percentage loss to taxation.

But you're not getting any more information - I trust you no more than I'd trust ObamaCare's buggy website with stuff that can be used to steal.

 

[OnePercenter]

I'm about to sell off a capital asset. If I get full market price I can deduct the cost of sale (fixing-up, commissions) from the gross. But I also have to add back in the "recapture" of depreciation over the years. Doing it that way will yield a modest profit which will be taxed at 15%.

But if I, instead, donate the asset to a charity I can take the full market value of the property as a deduction against other income. That would allow me to entirely cash out a major retirement account in the same year and apply that deduction against that. Result? Over a period of 2-3 years (credit will be too great to apply in a single year), I can avoid taxes entirely on the retirement cashout.

Then the charity can sell the property for whatever they want - price it low to get a quick sale - and they'll be in by whatever they get which is something they never previously had and it will not impact the donation value I declared since the ultimate sale price is out of my control.

At the end of the day I'll have a few bucks less than I might have had through just selling low myself but I'll have the satisfaction of using money I don't need to help some charity whose work I value while denying a chunk of money to Obama & Associates.

"denying a chunk of money to Obama & Associates" - What's wrong, you don't want to pay tax on monies you made?

 

[OnePercenter]

Having left California some years ago upon retirement the total tax bite was 47%. Now before you get you liberal knickers in a twist, that included:

Federal Income Tax
Federal Capital Gains Tax (which, capped at 15% lowered the grand percentage total)
State Income Tax
Local Property Tax
County Fire District Property tax
Irrigation district Property tax
Motor vehicle tax
Mandatory "Smog" test fee
State sales tax
Local sales tax

If I also took the effort to figure in stuff like Social Security and self employment taxes (on some of the income) then the percentage would have been somewhat higher.

California - indeed a good place ----- to be FROM.

State Income Tax
Local Property Tax
County Fire District Property tax
Irrigation district Property tax
Motor vehicle tax
State sales tax
Local sales tax
Half of the self employment tax

Are deductible on your Federal return. So let's see some effective tax numbers.

Indeed they are and those were taken into account in preparing the federal return used in calculating the overall percentage loss to taxation.

But you're not getting any more information - I trust you no more than I'd trust ObamaCare's buggy website with stuff that can be used to steal.

Yeah I know, you're one of those 'over-taxed'. But when anyone starts talking about 'real numbers' you go running.

 

[HenryBHough]

So what kind of scam do you run that you want personal information?

 

[Cassandro]

Are you interested in all taxes or just FIT? Other countries have one or two taxes. We have dozens. A couple of years ago, I checked my phone bill. Including all my taxes, fees, and surcharges, I had to earn $100 to be able to pay $27 for the actual telephone service.

 

[OnePercenter]

So what kind of scam do you run that you want personal information?

What personal information? Your effective tax rate? Really?

 

[HenryBHough]

So what kind of scam do you run that you want personal information?

What personal information? Your effective tax rate? Really?

The rate I stated, not federal. Not state. CUMULATIVE.

But I was wrong.

I was low because I had overlooked all those hidden taxes like on phone bills, cable TV and probably two or three more that I don't even want to think about.

Now go back and re-read, this time for comprehension, and factor in another 1-3% for the things I overlooked.

Come back in an hour or so when you've had time to sound the words out and consult Google or similar when you come across one you can't grasp alone.