The latest 2017 Income tax Incisions and you can Operate Serves (TCJA) expenses limited an effective taxpayer’s deduction out-of county and you will regional taxes (SALT) so you’re able to $10,000. So it considerably increased the cost of county taxes from inside the says with higher limited income tax rates and relatively high possessions taxes. A property regarding small function inside the a middle-category people into borders of the San francisco bay area could cost $7,100000 a year for the property taxation. 7% and you can lso are-enforce FICA taxes to the people income significantly more than $eight hundred,one hundred thousand. This should effortlessly make the limited Federal taxation speed 55% for these in the greatest bracket. Add in the fresh new 13.3% better limited price for the Ca and you can taxpayers you can expect to pay an excellent 68.3% marginal speed to your money above $step one,000,one hundred thousand. Continue reading →