April 23, 2008

Tax Freedom Day & My tax rate is 32%

Free Money Finance points out that today, April 23rd, is 'Tax Freedom Day" the day in which they figure your year to date income has paid off your taxes.

The way I figure it my personal Tax Freedom Day is just about today also.

I just figured my total tax rate out as 32% of my gross income.
The break out for me is:
18% federal
7.2% state
5.4% social security
1.3% medicare

Note that some of my income is not on the W2 so I don't pay out social security and medicare on all of it. Normally they tax all your W2 reported wages at the standard 6.2% for social security and 1.45% for medicare.

If you think our taxes are bad then compare them to other countries: Tax rates around the world & List of countries by tax revenue as percentage of GDP

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