Total taxes

April 23, 2007 8:04 PM

My friend and I were having a discussion over acceptable marginal tax rates. I'm wondering where I would look to quickly find out how much of my income I would have to pay in state and federal taxes at different income levels. Is there a quick (online) way to figure this out? Exclude complications like stocks, marriage, other tax breaks, etc. If you want a specific salary, how much would I have to pay in taxes on a $100,000 salary? Thanks!
posted by JamesJD to law & government (6 comments total)

It might help if you specify your location. In Australia, for example, this website will be very helpful.
posted by b33j at 8:14 PM on April 23, 2007

US tax rates.

On $100,000, you'll pay $22,331, which is 22.3%
posted by croutonsupafreak at 9:12 PM on April 23, 2007

Note that that's taxable income, not gross income.
posted by raf at 9:55 PM on April 23, 2007

Probably helpful at this point to distinguish between income tax *brackets* and income tax *rates*.

"Brackets" are the divisions in a system of progressive taxation; as a single person with $100,000 a year of taxable income, you would be in the 28% Federal tax *bracket* in the US, but you would not pay 28% of your income in Federal taxes...

You'd pay "$15,107.50 plus 28% of the amount over $74,200," or as croutonsupafreak noted above without making the math explicit, $22,331, making your effective tax rate 22.3%.

Most states with an income tax use a similar system of brackets.

The key thing is to understand the effective tax *rate* that you're paying.

(In New York City, a hypothetical married couple with $100K in taxable income, no children, no mortgage deduction, etc. would pay an effective total tax rate of about 28% in combined Federal, State and local income taxes.)

Here's a good resource for understanding state and local taxes, although it goes into much more detail than simply income taxes.
posted by enrevanche at 4:10 AM on April 24, 2007

I looked for something similar once upon a time to try and compare the cost of the Isle of Man vs. UK - unfortunately there wasn't anything, so I had to resort to Excel :(
posted by Chunder at 6:55 AM on April 24, 2007

Assuming the simplest possible scenario--you are single with no kids and take the standard deduction, and have no other income adjustments--your taxable income on $100,000 salary would be $91,250. You would owe $19,661 for tax year 2007, an effective tax rate of 19.66%.

For more enlightenment, play with this tax calculator.
posted by deadfather at 7:31 AM on April 24, 2007