Breakdown shows what a salary of $1,500,000 actually gets you per month after taxes in California
- 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 3:07 PM (UTC+4)
by Andie Reeves
Last updated on Dec 13, 2023 at 8:17 PM (UTC+4)
Edited by
Alessandro Renesis
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.
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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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Andie is a content writer from South Africa with a background in broadcasting and journalism. Starting her career in the glossy pages of Cosmopolitan and Marie Claire, Andie has a broad portfolio, covering everything from sustainability solutions to celebrity car collections. When not at her laptop Andie can be found sewing, recording her podcast, taking board games too seriously or road-tripping in her bright green Kia.
