Hawaii flying
04-15-2018 | 06:07 AM
#41
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Secondly the 13.3% bracket applies to those make more than 1 mil. No SWA pilot is making that on flying alone, nice try lol!
04-15-2018 | 06:58 AM
#42
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Joined: Jan 2006
Posts: 1,733
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Originally Posted by iahflyr
CA state income tax is really not as bad as some people make it out to be. If you are married, the first $537,500 of your income is taxed at a marginal tax rate of 9.3%. However, California's income tax is highly progressive. The first $105,224 is taxed at an effective tax rate of only 4.4%. That's actually below average for many states. Even if you make 250k a year, your effective tax rate is 7.2% (Before any write-off's) For comparison, 43 out of 50 states charge state income tax, and the average effective state income tax rate is 5%.
State income tax is deductible on your federal taxes if you itemize. So if you're in a ~30% federal tax bracket, you'll get to write-off 30% of that 7.2% you paid in state taxes on your federal tax return. So your effective state tax rate would be 5%. Throw in some other federal write-offs (mortgage interest, charity, etc...), and your true effective state tax rate gets into the mid 4% range, depending on your situation, for making 250k.
California's property tax rate is also significantly lower than other states (Roughly 1% of the home value, and can not increase more than 2% annually). You'll find that owning property in California is also quite profitable.
People get all worked up over CA state income tax, but ~4.5% of your income if you make 250k is a very small price to pay for living in CA. It's worth it for the weather, scenery, things to do, beaches, mountains, wineries, you name it.
State income tax is deductible on your federal taxes if you itemize. So if you're in a ~30% federal tax bracket, you'll get to write-off 30% of that 7.2% you paid in state taxes on your federal tax return. So your effective state tax rate would be 5%. Throw in some other federal write-offs (mortgage interest, charity, etc...), and your true effective state tax rate gets into the mid 4% range, depending on your situation, for making 250k.
California's property tax rate is also significantly lower than other states (Roughly 1% of the home value, and can not increase more than 2% annually). You'll find that owning property in California is also quite profitable.
People get all worked up over CA state income tax, but ~4.5% of your income if you make 250k is a very small price to pay for living in CA. It's worth it for the weather, scenery, things to do, beaches, mountains, wineries, you name it.
Scroll down to Schedule Y (Married filing jointly). I think I used the 2016 numbers instead of 2017, but that doesn't make a difference (It actually means you pay slightly less than I quoted above). Care to tell me what you think is so wrong??
Originally Posted by ZeroTT
Sorry dude - state and local income tax deduction is now capped at $10k/yr for your federal return.
However, if you make 250K, you have an effective CA state tax rate of 7.2%, that means your CA state income tax is 18k. However if you have any other federal deductions (charity, mortgage interest), it's even less. You can write-off 10k of it on your federal taxes. So maybe your true effective state tax rate goes from mid 4% to ~5%. It's still really not that much. Yes I would vote to lower it slightly, or hope that GOP tax reform is repealed or altered regarding the SALT deduction. But regardless, CA state income tax is not this monstrous thing most people make it out to be.
04-15-2018 | 07:09 AM
#43
Gets Weekends Off
Joined: Jun 2015
Posts: 191
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When you say, buy a small condo in NV, I hope you mean to live there, not just for the tax advantages even though you live in CA... MN came after NWA pilots hard a few years back for essentially the same thing. Living in MN, but had a small places in TN/FL/AK. Were claiming that they weren't MN residents.
04-15-2018 | 08:07 AM
#44
Gets Weekend Reserve
Joined: Jul 2007
Posts: 4,258
Likes: 239
From: B737CA
Personally, I don’t care for CA gas prices, CA sales tax, CA property tax, CA real estate prices, the nanny state government policies, CA DMV fees including car registration fees. CA income tax is merely an icing on the cake.
04-15-2018 | 12:13 PM
#45
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Joined: Nov 2015
Posts: 1,364
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Sux but that's what turned up when I researched moving to CA.
04-15-2018 | 05:51 PM
#46
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Joined: Jul 2008
Posts: 969
Likes: 96
04-16-2018 | 05:37 AM
#48
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Joined: May 2005
Posts: 1,286
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Are you married? Where does your wife live? Have kids? Where do they go to school? Go to church? Where’s the church? Etc., etc.
Not trying to preach, just trying to let you know that having a second home in a tax free state doesn’t make you a non-resident of the state where your “center of gravity” lies. Don’t want to see any more dudes get caught in that trap.
https://www.forbes.com/sites/robertw.../#6f4830b84e1a
04-17-2018 | 11:10 AM
#49
Gets Weekends Off
Joined: May 2017
Posts: 104
Likes: 0
From: E175 FO
As someone mentioned above, the State of Minnesota went hard after some NWA pilots who were claiming Alaska, Washington, etc. residency. The end result was some felony convictions -- and everything that comes with that.
http://www.postbulletin.com/pilot-co...0a4deb703.html
http://www.postbulletin.com/pilot-co...0a4deb703.html
04-17-2018 | 08:09 PM
#50
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Joined: Sep 2013
Posts: 42
Likes: 0
I own a small little business in CA. Made around 5k gross last year. I missed my $25 corporation business fee by a few weeks. The penalty....$25 + $250 late fee!!! No wonder people don't want to do business in CA.
Lived in CA all my life and have always loved it but Gov. Brown and the coastal elites have pushed me to my breaking point. Will probably move to Nevada or Arizona in the next few years.
Lived in CA all my life and have always loved it but Gov. Brown and the coastal elites have pushed me to my breaking point. Will probably move to Nevada or Arizona in the next few years.
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