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Thanks for this comment. I must have misread at what income the 9% rate kicks in. Is your friend an assistant prof, or does he/she have tenure?


It is 9.3% on income after $58k until $300k (single filing), but the first $58k is taxed at a lower rate, so you never get anywhere near an effective 9% rate. That’s just the way marginal rates work, Republicans throw out the top tax rate to argue that California is high taxed, but it turns out the taxes are very progressive (the first $100k is taxed very lightly).

He should have tenure. The UC system doesn’t pay that great, and there is also a lot of competition for faculty positions. Your best bet is to make some money on the side , legally of course, advising some company, but even that has a lot of restrictions.


I mean yeah, it’s marginal, but $45k-58k is taxed at 8%, then $33k-$46k is taxed at 6%.

Those aren’t low rates compared to other states, especially considering the COL.


They're not low, certainly, but they aren't extravagant, and they are offset by low property taxes (California 1%, Texas 1.80%, New Hampshire 2.18%), even more so once you've been in a place some years, and are benefiting from Prop 13.


Uh, no, 1% isn’t not a low tax rate when’s starter single family home in the Bay Area is $1M.


Californian valuations are fixed in their increases by prop 13, so over time your property taxes will go down, restive to inflation at least.


Sure, if housing prices increase at the same rate as the last 30 years there is a huge benefit, but regardless if you buy today you’ll have a massive property tax bill.


Yes, and it really isn’t fair, but prop 13 wasn’t about fairness.


You have to look at what your effective rate is. If you make $100k, you’ll pay 6% effective.




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