When we lived in Cal decades ago, taxes weren't all that much lower. Federal taxes and state taxes (higher) on a larger salary, lots of social security and other fiddly little taxes and 100-200/check for 20% of my health insurance. The only good thing about social security is that while you pay a more the benefits are larger 62+. I'm trying to remember, but like 25% for the feds, 8-10% for the state, 6% for social security and the health insurance. Call it high 40's or so, maybe 50%? Yeah, sales tax was lower vs. vat but I thought Cal had about the highest sales tax in the states?
It all depends on what the aggregate deductions that are outside your control sum to, and what you get for the money.
In Ontario, it would be about 38%, and that’d include healthcare. Canada is very efficient though. At least a decade ago, Canada’s non-defense spending per person was less than the US’s.
In Germany it would be about 44% total. Of course, in Germany, $200k is a top 2% income. In California it’s only a top 8% income.
Yes. Apart from the countries which live off of foreign direct investment, taxes are generally pretty high.
Also, in many EU states, companies contribute to social security. In some this is indexed to profits, but on others this is indexed directly to wages, so if you count that bit, taxes directly attributable to your income can easily exceed 60% of what a company pays out.
I don't know if Belgium is using that loophole when counting the 60%, though.
If an American factored in the totality of their tax burden, it would be pretty high. The USA has the benefit of higher incomes and a gigantic population, so there's some economies of scale. But even so, add up all of income tax (federal, state, city, county), sales taxes, property taxes, tariffs, tolls, etc and the % is already pretty high. After factoring the cost of benefits that are free/subsidized in other countries, and the cost probably averages out to the same.
Of course, European countries can also have those same consumption taxes. But I'm not sure if OP factored that in.
In Brussels? Over half your net income would go to rent. If you are frugal then maybe you can get it to work out. This is not the type of income where you eat out every week.
providing healthcare and education are costs easily overlooked by most americans. But the reality is, these are costs borne by americans as well. and likely at a higher rate: americans pay more per capitia on both of those versus most other nations.
When we lived in Cal decades ago, taxes weren't all that much lower. Federal taxes and state taxes (higher) on a larger salary, lots of social security and other fiddly little taxes and 100-200/check for 20% of my health insurance. The only good thing about social security is that while you pay a more the benefits are larger 62+. I'm trying to remember, but like 25% for the feds, 8-10% for the state, 6% for social security and the health insurance. Call it high 40's or so, maybe 50%? Yeah, sales tax was lower vs. vat but I thought Cal had about the highest sales tax in the states?
It all depends on what the aggregate deductions that are outside your control sum to, and what you get for the money.
Wow, you pay this much tax and probably don't even get national healthcare.
If you make $200,000 as a single person in CA, you pay about 35% total of income in taxes. https://www.adp.com/resources/tools/calculators/salary-paych...
In Ontario, it would be about 38%, and that’d include healthcare. Canada is very efficient though. At least a decade ago, Canada’s non-defense spending per person was less than the US’s.
In Germany it would be about 44% total. Of course, in Germany, $200k is a top 2% income. In California it’s only a top 8% income.
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What I meant to say is that even if you have a very high income you will never pay more than 60% in total tax and social premiums.
On €100,000 a year you pay €57,512 in tax (58% tax). On €60,000 a year it's only €32,405 (54%).
See:
https://be.talent.com/tax-calculator?salary=100000&from=year...
https://be.talent.com/tax-calculator?salary=60000&from=year&...
>even if you have a very high income you will never pay more than 60% in total tax and social premiums.
Are there EU countries where you pay more than 60% for you make the "no more than 60% tax" sound like such a good deal?
AFAIK 60% is pretty much the top end of income tax rates as far as EU goes.
Yes. Apart from the countries which live off of foreign direct investment, taxes are generally pretty high.
Also, in many EU states, companies contribute to social security. In some this is indexed to profits, but on others this is indexed directly to wages, so if you count that bit, taxes directly attributable to your income can easily exceed 60% of what a company pays out.
I don't know if Belgium is using that loophole when counting the 60%, though.
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Civilization is expensive.
If an American factored in the totality of their tax burden, it would be pretty high. The USA has the benefit of higher incomes and a gigantic population, so there's some economies of scale. But even so, add up all of income tax (federal, state, city, county), sales taxes, property taxes, tariffs, tolls, etc and the % is already pretty high. After factoring the cost of benefits that are free/subsidized in other countries, and the cost probably averages out to the same.
Of course, European countries can also have those same consumption taxes. But I'm not sure if OP factored that in.
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>"On €60,000 a year it's only €32,405 (54%)."
Is it possible to live middle class life on around 27K?
In Brussels? Over half your net income would go to rent. If you are frugal then maybe you can get it to work out. This is not the type of income where you eat out every week.
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Frankly speaking that sounds awful
providing healthcare and education are costs easily overlooked by most americans. But the reality is, these are costs borne by americans as well. and likely at a higher rate: americans pay more per capitia on both of those versus most other nations.
The maximum combined federal and California state income tax rate is approximately 51.3% for the highest earners in 2025