Originally Posted by
Da40Pilot
Your salary is taxed but not the full amount that a resident would. So if California does 10% state income tax and you make $100,000 a year, those $100,000 only get taxed 5% due to the 51% rule and the rest will be taxes by your state (so if your state has no income tax) your rate is just 5%. Still better than the full 10%. But yes, as our flying starts expanding outside of CA this will go away (if it hasn’t already)
Don’t forget that California’s income tax rate is highly progressive. Your first 68k of earnings is taxed at 3.6% (assuming you are single and take the standard deduction). It’s even less if you are married, or you itemize.
43 out of 50 states have state income tax. California’s state income tax really doesn’t get that high until you get into the 300k plus range (single) or 600k married range.