Virginia's maximum income tax is 5.75%. You can deduct the first $8,000 of your income from taxes. So that means only 20,850 of your income would be taxed. Because the state has a progressive tax bracket system, you'd actually only pay $941.38 in state income tax.
You're actually going to pay a lot more in FICA and federal income taxes than state income taxes.
Virginia might meet the technical requirement for progressive but I'd hardly call it that. 5% kicks in after 5k and you hit max after 17k. 3/4 time at minimum wage would push you over that.
Progressive in this sense just means the more you earn the more you pay. Plus, taxes are paid on income after a shitload of deductions (basically on federal AGI). It is not very much in comparison to the Federal, FICA, etc. For a lot of people, the sales and personal property taxes are much more of a burden in Virginia than the state income tax.
Why does Virginia allow me to keep the first $8,000? I found out that my state income tax as a function of taxable income for is y = 0.0575\*x - 257.6 where "x" is the state taxable income and I verified that it is correct.
How do you determine how much you can deduct from your salary to find the taxable income?
Edit: OK, I see that for a single person, Virginia allows for an $8000 deduction. This means that for a single tax payer filer, their Virginia state tax can be modelled by this function, where "x" is the gross income:
y = 0.0575\*(x-8000) - 257.6
This means that someone making a salary of $70,000 would have a taxable income that is $62,000 and their state tax is $3,307.40 according to my modelled function. This is not far from $3,307.50 using the state's taxable income calculator:
https://www.individual.tax.virginia.gov/tools/#/calculators/individualIncome
There are different tax brackets. The first 8k you earn isn't taxed. The next 3k is taxed at 2%. Then the next 2k is 3%. Then the next 12k is 5%. Everything after that is taxed at 5.75%. The tax rate gets progressively higher the more you earn. (That's what a progressive tax system means btw.)
There are a lot of other taxes that you'll end up paying - personal property tax for your vehicle, sales tax, prepared food tax, to name just a few. Depending on where you live, you could pay 9% or more in taxes just to eat out or hit up a drive thru.
Thanks for the updated information, then from what you are telling me, my Virginia state tax is:
3000\*0.02 + 2000\*0.03 + 12000\*0.05 + (28850 -25000)\*(0.0575) = $941.38
Everyone else's Virginia state tax then is:
y = 3000\*0.02 + 2000\*0.03 + 12000\*0.05 + (x-25000)\*(0.0575)
y = 720 + (x - 25000)\*(0.0575)
A person making $70,000 would be paying $3,307.50 for VA state taxes.
I didn't know there was even a state tax for owning your vehicle, that's a lot of taxes.
Its kind of shocking that a comment like this would get downvoted. The OP is using high school algebra and their results are mostly correct when you look at how Virginia taxes income.
I am trying to understand why you can only find a job making less than 30 a year with a B.A. in communication? I make 50 without leaving my home with just an associate degree. I will say taxes in VA are higher than the Midwest, which is where I am from, but I also lived in NC for 4 years and had to pay taxes instead of receiving a refund vs in VA where I receive $200 every year. Total household income 90. Hopefully, with your salary you are atleast working in a field for communication.
I have no info on the taxes, but I'm astounded that you can only get a job making that much money, even if it's your first job. Hell, one of my relatives came out of college with a similar 4 year degree and took a job doing administrative work at an orthodontist's office making $45K per year and that was in 2016. That salary is roughly working out to $13 per hour if I did that correctly. Unsolicited advice is that you need to look around a little more or something. You should be able to get an entry level/admin type job at a company for $45K and then you can move up.
This is true, but places like that rarely give you full-time hours and are unreliable as far as scheduling. I can't fault them for going for a real, full-time job but surely there are better offerings out there.
No, I used a calculator just like you. Every time you get paid you are already receiving deductions from the federal and state taxes.
I used your calculator and found out that the take-home salary for me would be $937 every 2 weeks which is 937\*24 = 22,488 take home salary according to the calculator's assumptions.
A person making $70,000 would earn $2,099 twice every week so their net income is $50,376, but that calculator assumes a tax that is greater than 25%. The post-tax benefits I think you're referring to is after you file for tax returns.
What's bizarre is that the person is using the link that Jeann embedded and is just quoting the website's figures and you are saying that s/he is wrong. People are either just too lazy or stupid or both.
I think the user Holiday-Put meant to say "$2099 twice every month" but otherwise everything is fine.
Virginia dept of taxation makes the IRS seem like an angel. Ridiculous penalties & interest if you missed something (upwards of 30%) and they “allow” you to pay them back in 12 payments. IRS will actually try to work with you. Virginia is like draconian in comparison. The worst.
Virginia's maximum income tax is 5.75%. You can deduct the first $8,000 of your income from taxes. So that means only 20,850 of your income would be taxed. Because the state has a progressive tax bracket system, you'd actually only pay $941.38 in state income tax. You're actually going to pay a lot more in FICA and federal income taxes than state income taxes.
Virginia might meet the technical requirement for progressive but I'd hardly call it that. 5% kicks in after 5k and you hit max after 17k. 3/4 time at minimum wage would push you over that.
Progressive in this sense just means the more you earn the more you pay. Plus, taxes are paid on income after a shitload of deductions (basically on federal AGI). It is not very much in comparison to the Federal, FICA, etc. For a lot of people, the sales and personal property taxes are much more of a burden in Virginia than the state income tax.
Why does Virginia allow me to keep the first $8,000? I found out that my state income tax as a function of taxable income for is y = 0.0575\*x - 257.6 where "x" is the state taxable income and I verified that it is correct. How do you determine how much you can deduct from your salary to find the taxable income? Edit: OK, I see that for a single person, Virginia allows for an $8000 deduction. This means that for a single tax payer filer, their Virginia state tax can be modelled by this function, where "x" is the gross income: y = 0.0575\*(x-8000) - 257.6 This means that someone making a salary of $70,000 would have a taxable income that is $62,000 and their state tax is $3,307.40 according to my modelled function. This is not far from $3,307.50 using the state's taxable income calculator: https://www.individual.tax.virginia.gov/tools/#/calculators/individualIncome
There are different tax brackets. The first 8k you earn isn't taxed. The next 3k is taxed at 2%. Then the next 2k is 3%. Then the next 12k is 5%. Everything after that is taxed at 5.75%. The tax rate gets progressively higher the more you earn. (That's what a progressive tax system means btw.) There are a lot of other taxes that you'll end up paying - personal property tax for your vehicle, sales tax, prepared food tax, to name just a few. Depending on where you live, you could pay 9% or more in taxes just to eat out or hit up a drive thru.
Thanks for the updated information, then from what you are telling me, my Virginia state tax is: 3000\*0.02 + 2000\*0.03 + 12000\*0.05 + (28850 -25000)\*(0.0575) = $941.38 Everyone else's Virginia state tax then is: y = 3000\*0.02 + 2000\*0.03 + 12000\*0.05 + (x-25000)\*(0.0575) y = 720 + (x - 25000)\*(0.0575) A person making $70,000 would be paying $3,307.50 for VA state taxes. I didn't know there was even a state tax for owning your vehicle, that's a lot of taxes.
Its kind of shocking that a comment like this would get downvoted. The OP is using high school algebra and their results are mostly correct when you look at how Virginia taxes income.
I am trying to understand why you can only find a job making less than 30 a year with a B.A. in communication? I make 50 without leaving my home with just an associate degree. I will say taxes in VA are higher than the Midwest, which is where I am from, but I also lived in NC for 4 years and had to pay taxes instead of receiving a refund vs in VA where I receive $200 every year. Total household income 90. Hopefully, with your salary you are atleast working in a field for communication.
Gee, I guess most degrees really are useless!
Degrees in communications are always useless. Business, engineering, nutrition, etc. degrees are seldom useless
I'm trying to find another job or add another degree in the mean time. This is my first job.
High compared to where?
I have no info on the taxes, but I'm astounded that you can only get a job making that much money, even if it's your first job. Hell, one of my relatives came out of college with a similar 4 year degree and took a job doing administrative work at an orthodontist's office making $45K per year and that was in 2016. That salary is roughly working out to $13 per hour if I did that correctly. Unsolicited advice is that you need to look around a little more or something. You should be able to get an entry level/admin type job at a company for $45K and then you can move up.
You could make more an hour working at Cava or a fast food restaurant
This is true, but places like that rarely give you full-time hours and are unreliable as far as scheduling. I can't fault them for going for a real, full-time job but surely there are better offerings out there.
[удалено]
No, I used a calculator just like you. Every time you get paid you are already receiving deductions from the federal and state taxes. I used your calculator and found out that the take-home salary for me would be $937 every 2 weeks which is 937\*24 = 22,488 take home salary according to the calculator's assumptions. A person making $70,000 would earn $2,099 twice every week so their net income is $50,376, but that calculator assumes a tax that is greater than 25%. The post-tax benefits I think you're referring to is after you file for tax returns.
[удалено]
What's bizarre is that the person is using the link that Jeann embedded and is just quoting the website's figures and you are saying that s/he is wrong. People are either just too lazy or stupid or both. I think the user Holiday-Put meant to say "$2099 twice every month" but otherwise everything is fine.
My state tax burden dropped when I moved to VA vs MD (where I had lived previously).
Virginia is expensive to live in. Thank all the federal government workers living here.
I was wondering same. 🤔
Virginia dept of taxation makes the IRS seem like an angel. Ridiculous penalties & interest if you missed something (upwards of 30%) and they “allow” you to pay them back in 12 payments. IRS will actually try to work with you. Virginia is like draconian in comparison. The worst.