Am I calculating this wrong? I feel like I must be calculating this wrong. Nope, you're right. The part about California having high taxes is a myth. For a significant majority of taxpayers, California has one of the lowest income taxes in the country. It only works out to a high tax rate if you make significantly more money than most people. But since CA has a 9.3% marginal rate starting around $60k of income, and almost nobody understands what a marginal rate is, the myth persists. Ironically, the highest income taxes for the median taxpayer can be found one state north, in Oregon. More on reddit.com

There are a bunch of different city taxes for earnings that are not income (W-2). For instance, Investment and Dividends are covered by the 'School Income Tax' form. 1099's (contract work) are a different form. All of the forms have the same 3.75% tax rate. If your only income is from a W-2 and it is a PA employer, than there is a good chance that everything has been paid (this deduction is state law). More on reddit.com

"Net profit" literally means what's left of your gross revenue after subtracting expenses. When in doubt, read the instructions on the form itself. Worksheet A says there are a few things you'd add back in that might be subtracted on your 1040. https://www.phila.gov/media/20240102132018/Net-Profits-Tax-NPT-return-2023.pdf More on reddit.com

I have a job offer as an independent contractor and I live in Philadelphia. It seems like I need to set up as a business and pay the 5.99% BIRT which is kind of insane because it's on top of the 15% contractor tax, state tax, and Philly income tax. Am I missing anything?? More on reddit.com