Breakdown shows what a salary of $1,500,000 actually gets you per month after taxes in California

Paying over half a million dollars to the government every year can't feel good.
  • California is possibly the least tax-friendly US State
  • Anyone earning over $1 million has to pay a significant amount of that back every year
  • In addition to Federal Tax, there’s a long list of ancillary taxes on top

Published on Dec 13, 2023 at 3:07PM (UTC+4)

Last updated on Dec 13, 2023 at 8:17PM (UTC+4)

Edited by Alessandro Renesis
Daniel Seßler / Unsplash - Kelly Sikkema / Unsplash

If you’re ever fortunate enough to earn a six-figure salary, don’t do it in California.

The state is famously not very tax-friendly.

And it’s possibly the worst US state for a millionaire to live in.

READ MORE: Research suggests that doing one simple thing will make you 206% more likely to become a millionaire

California is the land of sun-soaked beaches, picturesque surroundings and beautiful people.

In many ways, the Golden State seems to be the ideal destination to live out the American dream.

Here, the tech industry and the world of film and television thrive.

The big earners in these industries, however, face a stark reality.

For anyone lucky enough to earn over $1 million, they are equally unlucky enough to face the state’s tax laws.

Wealth recently crunched the numbers of how much someone in this income bracket takes home.

And it’s pretty shocking.

Those who earn big are taxed heavily, with a tax rate of a colossal 49.5%.

Not only do these people need to pay regular income tax but also an extra 1% surtax.

For someone in this tax bracket, they’ll need to pay $184,557 in state tax every year.

Then there’s social security, which will be an extra $9,114 annually.

In total, their Medicare for the year will be $33,450, while state disability insurance is an additional $1,602.

But the biggest chunk of their money will go towards federal tax, which amounts to $513,164 a year.

It can’t feel good to know that half a million of your earnings will never make it to your bank account.

In fact, once it’s all added up a person earning $1.5 million a year will pay a total of $741,886 in tax.

That means they’ll only take home $758,114.

We almost feel sorry for them.

“So basically you have to make $2 million to be a millionaire,” one commenter said.

“That’s why there’s a max exodus of people leaving California,” another said.

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