The problem (in my mind) with the UK tax is the huge steps in the progression and how quickly it hits 40% (in SWE salaries, at least). Go from 0% to 20% to 40% which feels a bit "steep" but it is better than going from 0% to 10% to 12% to 22% to 24% to 32% to 35% to 37%.
But since I was old enough to actually look at paycheck (paycheque?) calculators online, I've found that the UK tax rate for livable wages is actually fairly low.
To compare NYC to UK, £66k/yr = $90k/yr. In the UK, you would be taxed £17k ($23k), but that same salary living in NYC would be taxed $26k (£19k).
So NYC + Fed + NYS taxed together at a higher rate than the UK government (INCLUDING NI).
And $90k in NYC feels like WAY less than £66k somewhere Zone 4-6 in London with a similar commute.
Remember under 50k NI is a massive jump. Roughly the marginal bands are 32%/42%/62%/45%. Add 10% if you have kids between 60k and 80k, add 9-15% over 27% if you have student loan. The 62% marginal rate at 100k is a big kicker.
Basically means most people pay far higher marginal rate between 50k and 120k than above 120k.
Income tax percentage in the U.S. ranges from negative counting credits (for the bottom 60% of taxpayers in states with no income tax) to a marginal rate of 52.7% plus a 1% surcharge on all income combining federal, state, and local for incomes over a million bucks in San Francisco.
Low income tax states tend to make up for it in other ways (sales tax, property tax, or both) but basically UK taxes would look extortionate to an Alaskan, painfully high to a Texan and probably pretty normal to a New Yorker or Californian.
96K/year = 8K/month, and I pocket about 70% of that. Does that seem high to you? It doesn't to me, but then I've mostly lived and worked in coastal blue states. if I moved to Florida, I'd take home probably another $500/month (and I'd probably spend more than that on having a car).
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That’s surprising as that’s about the same tax as in the U.K., but people claim the U.K. has high tax.
The problem (in my mind) with the UK tax is the huge steps in the progression and how quickly it hits 40% (in SWE salaries, at least). Go from 0% to 20% to 40% which feels a bit "steep" but it is better than going from 0% to 10% to 12% to 22% to 24% to 32% to 35% to 37%.
But since I was old enough to actually look at paycheck (paycheque?) calculators online, I've found that the UK tax rate for livable wages is actually fairly low.
To compare NYC to UK, £66k/yr = $90k/yr. In the UK, you would be taxed £17k ($23k), but that same salary living in NYC would be taxed $26k (£19k).
So NYC + Fed + NYS taxed together at a higher rate than the UK government (INCLUDING NI).
And $90k in NYC feels like WAY less than £66k somewhere Zone 4-6 in London with a similar commute.
Most people struggle to
Remember under 50k NI is a massive jump. Roughly the marginal bands are 32%/42%/62%/45%. Add 10% if you have kids between 60k and 80k, add 9-15% over 27% if you have student loan. The 62% marginal rate at 100k is a big kicker.
Basically means most people pay far higher marginal rate between 50k and 120k than above 120k.
A recent video on NYC, "The Absurd Lengths Billionaires Go to Not 'Live' in NYC":
* https://www.youtube.com/watch?v=veJfMypXWtc
Income tax percentage in the U.S. ranges from negative counting credits (for the bottom 60% of taxpayers in states with no income tax) to a marginal rate of 52.7% plus a 1% surcharge on all income combining federal, state, and local for incomes over a million bucks in San Francisco.
Low income tax states tend to make up for it in other ways (sales tax, property tax, or both) but basically UK taxes would look extortionate to an Alaskan, painfully high to a Texan and probably pretty normal to a New Yorker or Californian.
96K/year = 8K/month, and I pocket about 70% of that. Does that seem high to you? It doesn't to me, but then I've mostly lived and worked in coastal blue states. if I moved to Florida, I'd take home probably another $500/month (and I'd probably spend more than that on having a car).