Effective Tax Rates

[SaintM]

I finally got our taxes done.  Here are our effective tax rates:

US Federal: 7.78%
State: 0.037%
Foreign (Netherlands): 5.01%

Thanks to the "kiddie tax", each of three kids:
US Federal:  8.9%
State:  4.36%
Foreign: N/A

[College Stash]

How did you get your effective state so low with Missouri's terrible state taxes?

[SaintM]

I actually live on the Illinois side, but I have no idea how the tax rates compare. We are military and maintained Texas tax-free residency. We also have a tax loss (thanks depreciation deduction) in Virginia, but a very small amount of tax on a property in Louisiana.

[Retire-Canada]

BC Canada self-employed.

- not including CPP = 8.3% tax paid =  both federal and provincial taxes combined.
- incl CPP contributions = 13.5%

My top Fed tax rate = 26% and my top Prov tax rate = 12.3% before deductions.

-- Vik

[Kriegsspiel]

I was over 10% in 2014, but I just figured my 2015 at 2%. Winning!

[MrSal]

Federal - 3.1%

State - 3% as well

[rothnroll]

How do u guys get your taxes so low? I was at 17 percent as a MAJ/04 and a side gig worth 60k. I itemized and maxed my tsp. Also.. my wife's school cost 24k.. got credit for that

[Kriegsspiel]

My pay got reduced, HSA contributions, Individual 401k for my LLC with a large company match for myself, self-employed health insurance, and the 8880.

[MrSal]

How do u guys get your taxes so low? I was at 17 percent as a MAJ/04 and a side gig worth 60k. I itemized and maxed my tsp. Also.. my wife's school cost 24k.. got credit for that

401k/457 and IRAs and itemizing.

[rothnroll]

How do u guys get your taxes so low? I was at 17 percent as a MAJ/04 and a side gig worth 60k. I itemized and maxed my tsp. Also.. my wife's school cost 24k.. got credit for that

401k/457 and IRAs and itemizing.

I itemize.. but can't seem to get it that low.
I max my TSP. I don't have access to a 457 or a HSA

[Kriegsspiel]

How do u guys get your taxes so low? I was at 17 percent as a MAJ/04 and a side gig worth 60k. I itemized and maxed my tsp. Also.. my wife's school cost 24k.. got credit for that

401k/457 and IRAs and itemizing.

I itemize.. but can't seem to get it that low.
I max my TSP. I don't have access to a 457 or a HSA

Quit your job and start a profitable small business. Duh.

[SaintM]

How do u guys get your taxes so low? I was at 17 percent as a MAJ/04 and a side gig worth 60k. I itemized and maxed my tsp. Also.. my wife's school cost 24k.. got credit for that

1. Live off base. Your tax-free housing allowance is about 25% of your total military compensation.
2. Contribute to a Roth IRA. All the income is tax-free.
3. Invest in tax-advantaged investments (MLPs, equity REITs, qualified dividend payers, municipal bonds) in taxable accounts.
4. Buy a house every where you move, rent it out when you move away. The depreciation deduction is the best deduction out there. Can also deduct interest AND preserve the standard deduction.
5. Buy low cost whole life insurance (yes there is such a thing) from AAFMAA. The account earns income which is tax-deferred if I withdraw it or tax-free when I croak. 

I don't contribute to the traditional TSP. If I did, the percentage would be even lower. Since I will never be in the 15% tax bracket, I contribute to the Roth TSP and allow the account to grow tax free. I don't include income from the TSP because I cannot calculate it. That would also lower the percentage.

[FrontRanger]

I just filed for Uncle Sam and Quicken had me at 20.1% for an effective tax rate. Up from 17.4% from 2013! NOT GOOD! Need to move more money into the deferred compensation and was hit with the AMT.

[Unique User]

How did you get your effective state so low with Missouri's terrible state taxes?

I only paid 2% effective rate in Missouri, how are they horrible? 

[GoingConcern]

I think this thread is useless without the income posted. 

Income= $115k (Taxable income, doesn't gross income was probably around $120kish)
Fed Tax Rate= 11.5%
State Tax Rate= 4.5%

Federal tax rate would of been around 13.5% without the education credits.  Also was not able to take advantage of itemizing this year and my tax rate should increase next year when we move to a higher income state. 

 

[mandy_2002]

I was at 18.2% overall for 2014, up from 17.2% for 2013.  I attribute this to my half year residence status in the tax heavy state of CA (sun tax; not worth it for me). 

2014 included a huge gross up from the buyout for my home since I lost money on the deal in relocation.  Next year my effective rate should be lower.  (I itemize and max the 401k.)

[clarkfan1979]

About 110K in two salaries + 4K in rental income and 5K in 401K match.

Federal was 10.87%. No state income tax in FL.

We could have gotten it lower with more retirement contributions. However, we did just enough to miss the 25% income tax bracket.

We are stocking cash for another rental house within the next 6 months. 

[SaintM]

I think this thread is useless without the income posted. 

Sorry, I'm not willing to post my income on the internet, other than to say we are in the top .03% (income) and .25% (net worth) in the world according to globalrichlist.com.

[Cecil]

Gross $134k for two adults, no kids, and we paid $20,223 in provincial and federal tax, for a combined rate of 15.1%. Not counting CPP contributions.

[sol]

Sorry, I'm not willing to post my income on the internet, other than to say we are in the top...

Did you think no one would take you up on that offer? 

You know we can go to globalrichlist.com and figure out what numbers correspond to those percentages, right?  I just did.  You make more than me.  You also have more saved than I do. 

I'll assume you're still working because your butler just asked for a raise.

[SaintM]

Did you think no one would take you up on that offer? 

You know we can go to globalrichlist.com and figure out what numbers correspond to those percentages, right?  I just did.  You make more than me.  You also have more saved than I do. 

I'll assume you're still working because your butler just asked for a raise.

Top .03% represents over a $100,000 range.

Nah, the butler has to fend for himself. I work because (a) it's mildly entertaining and (b) I do want the pension/lifetime healthcare that comes with it.

[G-dog]

I'll come back and calculate, but just did Fed and we owed about $6500, up from about $1000 owed last year. May also owe a penalty, letting Feds calculate that. Haven't done state taxes yet. Not sure yet why the jump vs. last year...

[GoingConcern]

I think this thread is useless without the income posted. 

Sorry, I'm not willing to post my income on the internet, other than to say we are in the top .03% (income) and .25% (net worth) in the world according to globalrichlist.com.

Fair enough, but tax rates without income posted provides no context. 

[enigmaT120]

I think this thread is useless without the income posted. 

Sorry, I'm not willing to post my income on the internet, other than to say we are in the top .03% (income) and .25% (net worth) in the world according to globalrichlist.com.

My income is available on the internet to anybody who knows my name and where I work.  I thought that was kind of weird but I guess it doesn't matter.

USDA, Oregon should be enough.

[KiloRomeo]

18.X% ETR, $24,XXX in taxes, $131k in income, maxed 2 HSAs. Will be switching to a traditional IRA/401K for 2015 to get that tax down.