The fresh 2017 Taxation Incisions and you can Perform Acts (TCJA) expenses restricted a great taxpayer’s deduction away from county and you will regional taxation (SALT) in order to $10,100. So it dramatically improved the price of county fees in the says which have large limited tax rates and you can seemingly large assets fees. A property off small mode in the a center-group people on the outskirts of your own Bay area can cost $7,one hundred thousand a-year inside the property taxes. 7% and you can re-impose FICA taxation towards the one earnings above $eight hundred,000. This should effectively improve marginal Government tax rates 55% for those in the greatest class. Add the fresh new 13.3% most useful marginal speed for the California and you can taxpayers could shell out an effective 68.3% marginal speed toward earnings significantly more than $step one,one hundred thousand,000. One income tax speed would-be ahead of almost every other taxes and you will costs such as for example possessions taxes, car certification and you may subscription, and you may sales fees. Read more