Are income taxes in Philadelphia higher than Los Angeles?
Anyone familiar with Philadelphia Net Profits (NPT) taxes?
Local earned income tax return calculation
How much do you need to make to live comfortably in Philadelphia? A new study says nearly $93,000
Smartasset.com's income tax calculator says that it is. I thought that couldn't possibly be right because I've always heard California has a higher cost of living and higher tax rates than pretty much anywhere else other than New York.
I tried to calculate it myself, and it looks like that might be true.
California state taxes, if your income is 35000, would be 918.76 (Because the formula is 824.02+(.06(35000-33421)))
In PA, state income taxes are a flat 3.07% rate, so it would be 1074.50.
CA doesn't have local taxes outside of San Francisco. Philadelphia has local tax of about 3%. So you'd be paying a total of about $2000 in taxes in Philadelphia, while only paying 918 in Los Angeles.
If you earn $100,000, you'd be paying 6428.64 in CA state taxes (2581.6+(.093(100000-58634))). In PA, you'd pay 3070 in state taxes, then in Philadelphia, an additional 3448.1 in local taxes, totaling 6518.10.
It's not until you start earning more than about $104,000 that CA state taxes outweigh tax rates in Philadelphia.
Am I calculating this wrong? I feel like I must be calculating this wrong.