Comparing Tax Rates Across Countries: The Impact on Income and Deductions

[Evo]

My house tax is over $4,000 per year and I live in a rural unincorporated area with no sewer system, we're on septic, no street lights, no sidewalks.

Car license tax is about 15% of retail value of the car annually.

State IncomeTax 6.54%

Federal 28% after itemizing deductions.

sales tax 5.3%

Gasoline tax is .25 cents per gallon

 

[Ivan Seeking]

Our rate on a typical year: You don't even want to know. Due to the way that I have the business/property set up, our deductions for the home, office, and property, are incredible. For starters, the first 30-40K of income is basically tax free. Nearly 30% of everything spent on the home and property is a deduction. From there it depends on how many additional perks can be applied. But, on a really good year and when few large purchases are made for the property, there is a breaking point where the taxes go sky high. Between Fed, State, and the Self Employment tax, I can pay as much as ~50% on the income made beyond a certain amount.

Btw, I never cheat. I tangled with the IRS once and never want to do that again. Be absolutely sure before taking that deduction!

 

[chroot]

If you register the car in the US, you most certainly will pay a tax based on the value of the car at the time you register it. The states I've lived in have all closed that loophole that allowed you to buy a car out of state and drive it home and avoid paying taxes. It's a state tax, not a federal tax, but tax nonetheless.

There are still ways. If you buy a car out of state, have it registered there, and then drive it (somewhat illegally) for more than a year with the original plates, you won't have to pay taxes in your actual state of residence.

- Warren

 

[gravenewworld]

30% for all taxes, deductions for health care, and retirement crap. i can't believe stupid philadelphia city tax is 25$ more than PA state tax.