• YiddishMcSquidish@lemmy.today
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      7 hours ago

      Top tax rate in California is 12.5%. and it marginal so only the portion you make above the cutoff is what’s taxed at that percent.

      • tricerotops [they/them]@hexbear.net
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        6 hours ago

        You also have to pay federal tax. And if you are in the top tax bracket you are earning somewhere between 700k and infinity money so what you are taxed on in that bracket can be almost nothing or it can asymptotically approach 100% of your earnings. In any case the top federal tax brackets is 37% and the top california tax bracket as you said is 12.5% which so happens to add up to 49.5%. Plus all the other stuff like social security and whatnot.