Taxes you pay in California

[Mick]

Assume $200k in income, $120k for a policeman, $80k for a secretary. Here’s the list of taxes they will pay:

1. Payroll & Income Taxes (Annual)

Federal Income Tax

Assuming:

• Married filing jointly
• Standard deduction ($29,200)
• Two children

Taxable income: $200,000 − $29,200 = $170,800

Federal tax using 2025 brackets ≈ $23,800

Social Security (FICA)

6.2% on the first $168,600 per earner (2025 cap). You have two incomes well below the ca. FICA = 6.2% × $200,000 = $12,400

Medicare Tax

1.45% of all wages (no cap)
Medicare = 1.45% × $200,000 = $2,900

California State Income Tax

After:

• CA standard deduction ($11,800 MFJ)
• Two dependents ($438 × 2)
• Adjusted brackets (2025)

Approximate CA income tax: $8,000

California SDI (State Disability Insurance)

1.1% on the first $145,600 per earner (2025 structure)
Your incomes do not exceed the cap.
SDI = 1.1% × $200,000 = $2,200

⭐ TOTAL — PAYROLL & INCOME TAXES

Category	Annual
Federal income tax	$23,800
Social Security	$12,400
Medicare	$2,900
CA state income tax	$8,000
CA SDI	$2,200
TOTAL	$49,300

 

2. Home Ownership–Related Taxes

Property Tax (Base + Local Bonds)

California typical effective rate: 1.1% × $800,000 = $8,800
If your area has parcel taxes, add maybe $200–$600; I will use a standard $300.
Total property tax: $9,100

3. Vehicle-Related Taxes (DMV + Gas Taxes)

Assume:

• 2 typical cars
• 12,000 miles/year per car
• 25 mpg average
• 960 gallons per year household fuel use

A. DMV Registration & Fees

Typical annual DMV bill per car in CA: $250–$300

Use: $275 × 2 = $550

B. Gasoline Taxes

California gas taxes per gallon (2025):</p>

• Excise tax: ~$0.617
• Sales tax: ~$0.20
• LCFS & Cap-and-Trade pass-through:
• Underground tank fee: $0.02

Total tax per gallon: ~$1.09
Tax on 960 gallons: 960 × $1.09 = $1,046<

 

⭐ TOTAL — VEHICLE TAXES

Category	Annual
DMV fees	$550
Gas taxes	$1,046
TOTAL	$1,596

4. Sales Taxes & Consumption Taxes

A. Sales Tax

Assume:

• 50% of net income spent on taxable goods
• Household spending approx. $90,000/year
• Half taxable → $45,000 taxable spending
• Avg CA sales tax: 9%

Sales tax = 9% × $45,000 = $4,050

B. Utility & Telecom UUT Taxes

Average California family pays:

• Electric utility tax: ~$120
• Gas utility user tax: ~$40
• Telecom taxes & surcharges: ~$250–$350

Use conservative: $450 total

C. Alcohol, miscellaneous excise taxes

Typical modest household use: $100/year in embedded excise taxes.

⭐ TOTAL — CONSUMPTION TAXES

Category	Annual
Sales tax	$4,050
Utility & telecom UUT	$450
Alcohol/other excise	$100
TOTAL	$4,600

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5. Insurance Taxes (Hidden but Real)

California imposes a 2.35% gross premiums tax on:

• Homeowners insurance
• Auto insurance
• Umbrella insurance
• Life insurance

Estimate:

• Homeowners: $1,800 premium → $42 tax
• Auto (2 cars): $3,000 total → $70 tax
• Umbrella + misc: $1,000 → $23

Total insurance premium tax: ~$135

 

Grand Total: ALL Taxes Combined

Category	Annual Tax
Payroll & income taxes	$49,300
Property taxes	$9,100
Vehicle taxes	$1,596
Consumption taxes	$4,600
Insurance premium taxes	$135
TOTAL TAXES PAID PER YEAR	📌 $64,731

 

🎯 FINAL ANSWER: You pay approximately $64,700 per year in total taxes.

This means:

Effective total tax burden:

$64,731 ÷ $200,000 = 32.4% of your gross household income

Take-home (after all taxes): $200,000 − $64,731 = $135,269

• This topic was modified 3 months, 3 weeks ago by Mick.

[Legend]

Appalling.

There is no “pain” signal on most of the taxes you list, because they are both mandatory and insidious.  We all debate income tax rates but look at the amount of tax you pay on utility and telecom bills.

bullshit.

____________________________________________________________
Sic transit gloria mundi (so shut up and get back to work)

[Author]

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