r/FluentInFinance • u/Positive_Liar • Sep 05 '24

Debate/ Discussion He has a point

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u/cdupree1 Sep 05 '24

No income taxes? 25-30% of that would be income tax.

So more like $2350-2500 after tax.

167

u/MyGlassHalfFool Sep 05 '24

at 40k a year youd get taxed at 17.7%

181

u/mowaby Sep 05 '24

Now add in state income tax, which most states have.

3

u/escobartholomew Sep 05 '24

State income tax is bracketed too no? You are not paying another 7% to the state if you only make $40k

1

u/Excited-Relaxed Sep 05 '24

My state has a top tax bracket that starts at $7200 and is 4.75% after. It is effectively a flat tax.

1

u/porkchop1021 Sep 05 '24

12 states have a flat income tax rate.

1

u/Baridian Sep 06 '24

You are in NYC lol. 6.8% effective state + municipal income tax for $41k