Blob Mckenzie wrote:ukcanuck wrote:
Per works for a slightly more efficient government
I guess .....as bad as the govt here is I would be pissed paying 60 % income tax rates.
Well... On incomes below SEK 372,000 (roughly CAD 55,000) you only pay municipal tax, which varies from 29 to 36%, depending on where you live. The lowest rates are mostly found in the South and in the Stockholm area, while the highest rates are typically in the sparsely populated "forest counties". Where I live it's 32%, so pretty average.
So, on incomes above 372,000 there is a national 20% tax, and on incomes above 533,000 (roughly CAD 80,000) there is an additional 5%. Thus, sure, you can have a 60% tax rate, but only if you earn more than CAD 80,000 a year and live in the outback. Plus those 60% would only apply to the amount exceding the aforementioned CAD 80,000, so it's not the effective tax rate, merely the marginal tax rate on the part of your income exceding 80,000.
OK, here's an example. Say you live in a municipality that charges 36% in municipal taxes and your yearly earnings are CAD 100,000. You then pay municipal tax on the full 100,000, ie 36,000. On the earnings between 55,000 and 80,000 you pay an additional 20%, ie 5,000, and on the earnings between 80,000 and 100,000 you pay 25%, ie another 5,000. Thus in total you pay 46,000 and end up with a 46% effective tax rate. Now sure, if you instead earn a sweet CAD 1,000,000 million you'd end up paying 595,000, so on incomes exceding CAD 1,000,000 a 60% tax rate may actually occur, but only if you live in one of those rural munipialities that are at the top of the tax league.