Originally Posted by
FlightDetent
For the US salaries, what would be the coefficient from GROSS to NET ? Once you retire over there, would the medical insurance cover still continue?
My overall tax rate, including SS, Medicare, and state taxes is 31% +/- a couple of tenths. Estimate came out to be 30.5% - 31.2%. At a certain point all of your deductions stay the same and any additional income is taxed at 45.2% (federal income tax, state income tax, Medicare 1.2%).
That is for the highest earning bracket. Income tax brackets go up, SS is 6% up to $133K, and Medicare is 1.2% across the board. So the more you make after $133K the lower the effective tax rate from SS (eff. 3% at $266K income, 2% at $399K, etc). So federal and state income tax goes up, SS goes down, and Medicare stays flat as a percentage of income at higher income totals.