The big dog! The current tax system is progressive meaning not all of your income is taxed at your highest bracket. For example, a couple filing jointly in 2023 will see the first $190,750 taxed at 0%, 12%, and 22%. It really starts to hurt for every dollar over $364,200 because they are taxed at 32%. Not everything is taxed there, just the income over $364,200. Remember, if you don’t have a tax bill, you didn’t make any money. CRNA problems.

Just like it sounds, the state takes a percentage of that green! Up to 11% of your paycheck can go directly to the state. Expect to pay the top bracket of each state with that CRNA income. There are 9 states that do not have such a tax, but do not be fooled, they still get paid somewhere ** cough ** insane property taxes. But these 9 states have the lowest overall tax burdens by just a slight bit.

You may hear this as FICA (which also includes Medicare) or payroll taxes. Basically Uncle Sam wants 12.4% of the first $147,000 you earn in 2022. W2 employees are only on the hook for 6.2% as the employer pays half. If lucky enough, you may see a small percentage of this back when you retire. Not nearly as much as following The Financial Cocktail’s investment advice, but again, that’s the price of making money.

The much smaller part of FICA. Just like social security taxes, a W2 employee is only responsible for half of the tax burden. This boils down to a 1.45% tax that comes out of your check. Your employer also pays 1.45%, so that’s a benefit of being W2.

Pretty self explanatory. The amount is based on the value of the property. Amounts range from 0.28% up to 2.49%. You guessed it, Hawaii with the highest state income tax has the lowest property tax. And those 9 states without a state income tax make there money back here.

The city may have an income tax on top of the aforementioned. It usually goes towards infrastructure. May be flat or progressive.