API tools faq
paste
Advertisement
Guest User

Untitled

a guest
Jun 4th, 2025
15
0
Never
Add comment
Not a member of Pastebin yet? Sign Up, it unlocks many cool features!
text 6.67 KB | None | 0 0
raw download clone embed print report
  1. Below is a rough estimate of what someone earning \$150,000 in gross wages per year would owe in U.S. taxes, broken into federal income tax, payroll (FICA) taxes, and state income tax. Two scenarios are shown: one in a no-income-tax state (e.g., Texas or Florida) and one in California (among the highest state-income-tax jurisdictions).
  2.  
  3. ---
  4.  
  5. ## 1. Federal Income Tax (Tax Year 2025)
  6.  
  7. 1. **Standard deduction (single filer):**
  8. \$15,000 (for 2025) ([barrons.com][1])
  9. 2. **Taxable income:**
  10. \$150,000 − \$15,000 = \$135,000
  11. 3. **2025 federal tax brackets for a single filer (taxable income) ([irs.gov][2], [barrons.com][1]):**
  12.  
  13. * 10 % on \$0 – \$11,925
  14. * 12 % on \$11,925 – \$48,475
  15. * 22 % on \$48,475 – \$103,350
  16. * 24 % on \$103,350 – \$197,300
  17. 4. **Compute federal tax:**
  18.  
  19. * 10 % × \$11,925 = \$1,192.50
  20. * 12 % × ( \$48,475 − \$11,925 ) = 0.12 × \$36,550 = \$4,386.00
  21. * 22 % × ( \$103,350 − \$48,475 ) = 0.22 × \$54,875 = \$12,072.50
  22. * 24 % × ( \$135,000 − \$103,350 ) = 0.24 × \$31,650 = \$7,596.00
  23. * **Total federal income tax ≈ \$1,192.50 + \$4,386.00 + \$12,072.50 + \$7,596.00 = \$25,247.00** ([irs.gov][2], [barrons.com][1])
  24.  
  25. So, **federal tax ≈ \$25,247**.
  26.  
  27. ---
  28.  
  29. ## 2. Payroll Taxes (FICA)
  30.  
  31. For 2025, the employee FICA rates and caps are as follows:
  32.  
  33. * **Social Security (OASDI) tax:** 6.2 % on the first \$176,100 of wages ([ssa.gov][3], [kiplinger.com][4])
  34. * **Medicare (HI) tax:** 1.45 % on all wages (no cap) ([ssa.gov][3], [kiplinger.com][4])
  35. * (No additional 0.9 % Medicare surtax applies until income exceeds \$200,000 for a single filer.)
  36.  
  37. Since \$150,000 < \$176,100, the full \$150,000 is subject to Social Security tax:
  38.  
  39. 1. **Social Security tax:** 0.062 × \$150,000 = \$9,300 ([ssa.gov][3], [kiplinger.com][4])
  40. 2. **Medicare tax:** 0.0145 × \$150,000 = \$2,175 ([ssa.gov][3], [kiplinger.com][4])
  41. 3. **Total FICA = \$9,300 + \$2,175 = \$11,475**
  42.  
  43. So, **payroll taxes ≈ \$11,475**.
  44.  
  45. ---
  46.  
  47. ## 3. State Income Tax
  48.  
  49. State income tax varies widely. Below are two illustrative examples:
  50.  
  51. ### 3.1. Example A – No State Income Tax (e.g., Texas or Florida)
  52.  
  53. * **State income tax = \$0**
  54. * (Neither Texas nor Florida imposes a personal income tax.) ([investopedia.com][5])
  55.  
  56. **Total tax liability (Example A)**
  57.  
  58. * Federal income tax: \$25,247
  59. * FICA payroll tax: \$11,475
  60. * State income tax: \$0
  61. * **Grand total ≈ \$36,722**
  62. * Effective total tax rate ≈ \$36,722 / \$150,000 ≈ 24.48 %
  63.  
  64. ---
  65.  
  66. ### 3.2. Example B – High State Income Tax (California)
  67.  
  68. #### 3.2.1. California Taxable Income
  69.  
  70. 1. **California standard deduction (single filer, 2024 tax year)**: \$5,540 ([hrblock.com][6])
  71. 2. **California taxable income:** \$150,000 − \$5,540 = \$144,460
  72.  
  73. #### 3.2.2. 2024 California state tax brackets (for income reported on 2025 returns, single filer) ([nerdwallet.com][7])
  74.  
  75. | Bracket Rate | Taxable Income Range (single) |
  76. | ------------ | ----------------------------- |
  77. | 1 % | \$ 0 – \$ 10,756 |
  78. | 2 % | \$ 10,757 – \$ 25,499 |
  79. | 4 % | \$ 25,500 – \$ 40,245 |
  80. | 6 % | \$ 40,246 – \$ 55,866 |
  81. | 8 % | \$ 55,867 – \$ 70,606 |
  82. | 9.3 % | \$ 70,607 – \$ 360,659 |
  83. | 10.3 % | \$ 360,660 – ... |
  84.  
  85. Since \$144,460 falls into the 9.3 % bracket, compute state tax bracket by bracket:
  86.  
  87. 1. **1 % × \$ 10,756** = \$ 107.56
  88. 2. **2 % × ( \$ 25,499 − \$ 10,756 )** = 0.02 × \$14,743 = \$ 294.86
  89. 3. **4 % × ( \$ 40,245 − \$ 25,499 )** = 0.04 × \$14,746 = \$ 589.84
  90. 4. **6 % × ( \$ 55,866 − \$ 40,246 )** = 0.06 × \$15,620 = \$ 937.20
  91. 5. **8 % × ( \$ 70,606 − \$ 55,866 )** = 0.08 × \$14,740 = \$1,179.20
  92. 6. **9.3 % × ( \$ 144,460 − \$ 70,607 )** = 0.093 × \$73,853 = \$6,873.53
  93.  
  94. Sum these:
  95.  
  96. * \$107.56 + \$294.86 = \$402.42
  97. * \$402.42 + \$589.84 = \$992.26
  98. * \$992.26 + \$937.20 = \$1,929.46
  99. * \$1,929.46 + \$1,179.20 = \$3,108.66
  100. * \$3,108.66 + \$6,873.53 = \$9,982.19
  101.  
  102. So, **California state tax ≈ \$9,982** ([hrblock.com][6], [nerdwallet.com][7])
  103.  
  104. #### 3.2.3. Total tax liability in California (Example B)
  105.  
  106. * Federal income tax: \$25,247
  107. * FICA payroll tax: \$11,475
  108. * California state tax: \$ 9,982
  109. * **Grand total ≈ \$46,704**
  110. * Effective total tax rate ≈ \$46,704 / \$150,000 ≈ 31.14 %
  111.  
  112. ---
  113.  
  114. ## 4. Summary of Examples
  115.  
  116. | Component | No State Tax (e.g., TX/FL) | California |
  117. | ------------------------------------- | -------------------------- | ---------- |
  118. | **Gross income** | \$150,000 | \$150,000 |
  119. | **Federal income tax** | \$ 25,247 | \$ 25,247 |
  120. | **FICA (Social Security + Medicare)** | \$ 11,475 | \$ 11,475 |
  121. | **State income tax** | \$ 0 | \$ 9,982 |
  122. | **Total tax liability** | \$ 36,722 | \$ 46,704 |
  123. | **Effective rate** | 24.48 % | 31.14 % |
  124.  
  125. * **Lowest-tax example**: Living in a state with no personal income tax (e.g., Texas or Florida) → total ≈ \$36,722 (≈ 24.5 % of gross).
  126. * **Highest-tax example**: Living in California → total ≈ \$46,704 (≈ 31.1 % of gross).
  127.  
  128. These figures are illustrative estimates for a **single filer** in 2025, using standard deductions (no itemized deductions). Actual liability may vary if you have other credits/deductions (e.g., retirement contributions, itemized deductions, dependents, AMT, etc.).
  129.  
  130. [1]: https://www.barrons.com/articles/tax-brackets-2025-irs-c3694665?utm_source=chatgpt.com "The IRS Just Announced Tax Brackets for 2025"
  131. [2]: https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025?utm_source=chatgpt.com "IRS releases tax inflation adjustments for tax year 2025"
  132. [3]: https://www.ssa.gov/oact/cola/cbb.html?utm_source=chatgpt.com "Contribution and Benefit Base - SSA"
  133. [4]: https://www.kiplinger.com/taxes/social-security-tax-wage-base-jumps?utm_source=chatgpt.com "2025 Social Security Tax Limit: What to Know - Kiplinger"
  134. [5]: https://www.investopedia.com/ask/answers/060515/what-difference-between-state-income-tax-and-federal-income-tax.asp?utm_source=chatgpt.com "State Income Tax vs. Federal Income Tax: What's the Difference?"
  135. [6]: https://www.hrblock.com/tax-center/filing/states/california-tax-rates/?srsltid=AfmBOordwoUCjqlKyQd01Kdv3IBd2Hajb5M2os2tGadLDUNuEOpPcneR&utm_source=chatgpt.com "California state income tax brackets and rates for 2024-2025"
  136. [7]: https://www.nerdwallet.com/article/taxes/california-state-tax?utm_source=chatgpt.com "California State Income Tax Rates and Brackets 2024-2025"
  137.  
Advertisement
Add Comment
Please, Sign In to add comment
Advertisement
Public Pastes
Advertisement
We use cookies for various purposes including analytics. By continuing to use Pastebin, you agree to our use of cookies as described in the Cookies Policy.  OK, I Understand
Not a member of Pastebin yet?
Sign Up, it unlocks many cool features!