Taxes as a percentage of income.

[pushingit]

Include everything. SS, Fed, State, Property and estimated sales tax.

Personal income and taxes only. No business or corp taxes here.

[The J]

I'm taking a rough guess here, but SS is 7.65%, federal income is about 10%, state is about 4%, property taxes take up about 6%. Sales taxes I don't know, so I'd guess 3-5%.

[pushingit]

Property taxes take up 6%? Wow, I thought I lived in a high property tax area.

[Savoir Faire-Demogague in NJ]

The raw percentage is meaningless.
What one pays marginally is what matters.

[pushingit]

Jan 7, 2011 11:48:56 GMT -5 Savoir Faire-Demogague in NJ said:

The raw percentage is meaningless.
What one pays marginally is what matters.

Right, use the figure off your actual return. Your tax divided by your gross income.

[The J]

Jan 7, 2011 11:48:56 GMT -5 Savoir Faire-Demogague in NJ said:

The raw percentage is meaningless.
What one pays marginally is what matters.

Actually, the opposite is correct. Marginal rate is only relevant if you're considering earning more income. Otherwise, what really matters is effective rate, since that's what you're actually paying.

[The J]

Jan 7, 2011 11:48:56 GMT -5 pushingit said:

Property taxes take up 6%? Wow, I thought I lived in a high property tax area.

Yeah. I'm in a far more expensive area of NY. Mine are around $5k per year and I don't have any land.

[pushingit]

Jan 7, 2011 11:47:29 GMT -5 The J said:

Sales taxes I don't know, so I'd guess 3-5%.

You'd have to spend about 30K a year on sale taxable goods to spend 3% of 80K on sales tax, (at 8.25% sales tax, which is my rate.)

I'd have to spend around 42K a year on taxable goods to spend 3% of our household income on sales tax.

Unless you're buying a car every year, you're not spending 3% of your income on sales tax.

[The J]

Jan 7, 2011 11:55:00 GMT -5 pushingit said:

Jan 7, 2011 11:47:29 GMT -5 The J said:

Sales taxes I don't know, so I'd guess 3-5%.

You'd have to spend about 30K a year on sale taxable goods to spend 3% of 80K on sales tax, (at 8.25% sales tax, which is my rate.)

I'd have to spend around 42K a year on taxable goods to spend 3% of our household income on sales tax.

Unless you're buying a car every year, you're not spending 3% of your income on sales tax.

I'm kind of rolling in things like the taxes on electric, water, sewage, cell phone service, cable, gas tax, etc...

[pushingit]

<Yeah. I'm in a far more expensive area of NY. Mine are around $5k per year and I don't have any land.>

Ours are about 4K a year, and we have a higher household income, so it's closer to 3% for us.

[Savoir Faire-Demogague in NJ]

tually, the opposite is correct. Marginal rate is only relevant if you're considering earning more income. Otherwise, what really matters is effective rate, since that's what you're actually paying.

The marginal rate is the only one with any significance.

[pushingit]

Jan 7, 2011 11:56:28 GMT -5 The J said:

Jan 7, 2011 11:55:00 GMT -5 pushingit said:

I'm kind of rolling in things like the taxes on electric, water, sewage, cell phone service, cable, gas tax, etc...

I do tend to forget all those hidden taxes, but still . . . we spent only about 10K a year on utilities and those services mentioned and buy Indian gas, so I figured only 1%.

[dancinmama]

Ya, I think mine is a WAG too. FICA and medicare: 7.65% (I counted 7.65 even though it will be 5.65 in '11), Federal and State: 21%, Property tax: 1%, and sales tax (hard to estimate) but our sales tax rate is almost 10% so I'm going to be conservative and say 1%.

We all know that these figures don't count all the hidden taxes that we pay on our utility bills, at the gas pump, when we buy liquor (which for those EE folks is probably pretty high - ha ha ha), etc.

[souldoubt]

Just over 30% for 2010 in regards to federal income taxes, FICA and state income taxes. Estimated sales tax...maybe another 2-3% with a sales tax rate of 8.75%.

[pushingit]

Come on peeps . . . there are many more than 12 of us here!

[phil5185]

Our fed is about 9% (of $80k)
State 3%
Prop tax 2.5%
SS/Med 4%
Sales ~4%
Total - - - 22.5%

[ziyia]

I calculated roughly 20% (Fed, State, FICA, County, Property, and estimated sales taxes).

[Sum Dum Gai]

Beats me. Who has their taxes done by January 7th?

[The Walk of the Penguin Mich]

Just over 27%, according to last year's W2. That's federal, state, local and school tax, social security and Medicare. No property tax since I rent.

I imagine sales tax and other licensing would run maybe 2-3%. All of my utilities have a school tax added to them as well.

[phil5185]

Just over 27%, according to last year's W2.

In addition to the W2 numbers, you must back out a refund (if you get one).

[DebMD (banned)]

fed 32%

With that alone I pay more in taxes then some people make per year.

[happytraveler]

(Federal+State+OASDI+Property Taxes+Personal Property Taxes)/Gross Income is approximately 25%

[The Walk of the Penguin Mich]

In addition to the W2 numbers, you must back out a refund (if you get one).

Yep, did that. Refund was only a couple hundered $$.

[formerexpat]

fed 32% With that alone I pay more in taxes then some people make per year.

[/size]

Married filed jointly? If so, you're federal taxable income is $1m a year? Sweet!

Or are you including social security and taking your marginal rate of 25%?

SS is not a tax - it's a premium for your deferred annuity.

[happytraveler]

Jan 8, 2011 11:52:23 GMT -5 formerexpat said:

SS is not a tax - it's a premium for your deferred annuity.

I will make sure to keep that in mind---I guess the payroll tax reduction of 2% was really a reduction in my premium for my deferred annuity.

[cronewitch]

First you must define income.
Total wages tips and other comp 55K
401K reduced that -11K
Taxable wages 44K
dividends and gains 1K
Realized losses -2K
Deferred gains 73K
Roommate income 8K
Gifts received 1K
Total income 134K

Taxes 7.65% of 55K 4K
Income tax 3K
Property tax 4K
Sales tax 1K
Total 12K or so

[formerexpat]

I guess the payroll tax reduction of 2% was really a reduction in my premium for my deferred annuity.

[/size]

Remember that when you're taxed more heavily than the current tax law or means tested, at least partially, out of SS.

[❤ mollymouser ❤]

<----- doesn't do complex math problems without an incentive! (grin)

We're in California.... so whatever the California tax rate is.
We pay $3500 in property taxes.
Our sales tax rate in a hair under 10%.
When my wonderful DH is stateside, we pay standard Federal tax rates.
When my wonderful DH is in Iraq, a nice chunk of his income isn't taxed (CZTE)
His BAS isn't taxed.
His BAH isn't taxed.
His Hostile Fire Pay isn't taxed.
His Imminent Danger Pay isn't taxed.
I don't remember if they tax his Family Separation Pay.
They do tax his Flight Pay.
And they do tax his ACP.

See? Waaaay too complicated for moi.

[verrip1]

Every year, it is described which date the average US taxpayer has worked for his/her/its share of taxes. That date is somewhere in early June as I recall - more or less. ie, the average tax burden for taxpayers in the US is in the area of ~45%.

I'm surprised more YM posters don't know what their marginal fed tax rate is, apparently. That whole issue has no relevance to the various deductions in any year, or what kind of check was written to the IRS.

If only Commentator were here to discuss this. Alas!

[formerexpat]

Every year, it is described which date the average US taxpayer has worked for his/her/its share of taxes. That date is somewhere in early June as I recall - more or less. ie, the average tax burden for taxpayers in the US is in the area of ~45%.

[/size]

The lower half of the income earners pay 3% in federal taxes. How do you account for the other 42%?

I'll show you my support: www.taxfoundation.org/news/show/250.html

Now, can you show me yours.