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Forums - Politics Discussion - Income Tax in your countries

Here in Sweden, they calculate on a monthly basis so it varies. I currently have two jobs and a decent income compared to the median so I've come close to or just crossed the limit for state taxes a few times in the past year or so. The limit for state taxes is around 47.000 SEK a month, or roughly 4700$. I pay around 27% in municipal taxes up to 4700$, they add another 20% on any amount surpassing that. So if I make 5500$ one month (which was my highest so far), I pay the regular 27% municipal on the entire 5500$ and then 20% of 800$ in addition to this. One issue with this system is that the cut-off point is abrupt and the hike is substantial, leading some to actually lose out a bit when they're hovering around 5000-6000$. In other cases, with lower-income jobs, it's beneficial to not work at all and rather claim benefits from social services. This is even more unfortunate and one of the reasons why people who suggest "entry-level jobs" as a solution to overall high unemployment rates within certain demographics get so much shit.



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Way to much.



OdinHades said:
sc94597 said:

Wow, I didn't realize German premiums went that high.

Normally the employer pays half of that. But since I'm a freelancer, I don't have an employer so I have to pay everything myself. So if you're employed somewhere, it isn't that bad. What I'm paying is also the top rate, it doesn't get higher than that no matter how much I earn. Plus my son is insured without extra cost.

But the maximum amount you could pay monthly is 769,16€ due to the Beitragsbemessungsgrenze.

Or do you include the long-term care insurance?



sc94597 said:
OdinHades said:

plus around 1.000 € each month for my health insurance. 

Wow, I didn't realize German premiums went that high.

Even here in the U.S, 1.000 euros ($1,070) per month is very steep for what I am assuming is individual coverage. That is pretty much the monthly per capita spending on healthcare (including all costs) with no subsidies in the U.S (which is double what it is in the rest of the developed world), but most people get some form of subsidies (employer, medicare, medicaid, or ACA.) The average family coverage is about $1,100 per month to put things in perspective.

My roommate is self-employed and he pays about $250 /month (after subsidies, government pays $400 /month) for a $1,500 deductible plan with a yearly out-of-pocket maximum of $5,000. 

I get fully employer-subsidized premiums currently, but in my previous job I paid about $180 /month (employer paid $360 /month) for a $750 deductible plan with a $2000 out-of-pocket maximum. Before that I was on Medicaid my whole life, and that only had trivial $1-$5 per service copays. No other cost-sharing.

I generally look at the German model as a model the U.S could very easily transition to for universal healthcare, but I am now wondering if single-payer/medicare-for-all makes more sense anyway despite the political obstacles and difficulty of transitioning.

OdinHades already explained it a little but I want to expand on that.

If you take the German median salary of 44,074 Euro (see OP), you would need to pay roughly 292 Euro a month for health insurance.
The employer will pay an additional 292 Euro.

The public insurance will thus receive 584 Euro. If you earn 58.050 Euro a year, you reached a limit where the public insurance receives no more than 769.16 Euro. So if you're employed, the maximum you can pay for health insurance is 384.58 Euro a month.

A freelancer has to pay the employer fee as well.

It doesn't matter if or how many children you have. All of them are automatically covered at no extra cost. If your wife does not work or earns less than 5,400 Euro a year, she's included as well.

With that you're all set and the public insurance will pay everything from the first Euro cent. You only have to pay 5 Euro - 10 Euro for every prescription drug, 10 Euro for every day spent in a hospital (280 Euro max a year) and for anything fancy that is not considered basic healthcare.

Last edited by Barozi - on 08 July 2022

Barozi said:

But the maximum amount you could pay monthly is 769,16€ due to the Beitragsbemessungsgrenze.

Or do you include the long-term care insurance?

Yes, I did. I don't care too much what exactly I'm paying for as I'm always paying all of it in one payment. To be precise I'm paying 887,68 € to my insurance company each and every month at the moment. But at least I can deduct that from my taxes, so it isn't too bad.



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My average tax rate is 25%, marginal at 34.5% here in Australia.
Paid almost $25,000 in total tax this financial year... Or the equivalent to 17,000 USD.

That includes the 2% for the medicare levy to support our universal healthcare system. (I could save money and go private.. But rather support the system.)

Honestly it seems high, but there are so many benefits it actually evens itself out compared to other nations without social benefits like the USA.

Hoping I don't nudge the next tax bracket next year which will increase my marginal tax rate to 39%. - Probably gonna get near it at the very least with the pay rises.



--::{PC Gaming Master Race}::--

Pemalite said:

My average tax rate is 25%, marginal at 34.5% here in Australia.
Paid almost $25,000 in total tax this financial year... Or the equivalent to 17,000 USD.

That includes the 2% for the medicare levy to support our universal healthcare system. (I could save money and go private.. But rather support the system.)

Honestly it seems high, but there are so many benefits it actually evens itself out compared to other nations without social benefits like the USA.

Hoping I don't nudge the next tax bracket next year which will increase my marginal tax rate to 39%. - Probably gonna get near it at the very least with the pay rises.

So you got roughly $75k take home from a total of $100k? That’s basically the same in the US.



When the herd loses its way, the shepard must kill the bull that leads them astray.

Pemalite said:

My average tax rate is 25%, marginal at 34.5% here in Australia.
Paid almost $25,000 in total tax this financial year... Or the equivalent to 17,000 USD.

That includes the 2% for the medicare levy to support our universal healthcare system. (I could save money and go private.. But rather support the system.)

Honestly it seems high, but there are so many benefits it actually evens itself out compared to other nations without social benefits like the USA.

Hoping I don't nudge the next tax bracket next year which will increase my marginal tax rate to 39%. - Probably gonna get near it at the very least with the pay rises.

Salary sacrifice into your super... Or even better mortgage. 

Even if it's just a few thousand. 



zorg1000 said:
Pemalite said:

My average tax rate is 25%, marginal at 34.5% here in Australia.
Paid almost $25,000 in total tax this financial year... Or the equivalent to 17,000 USD.

That includes the 2% for the medicare levy to support our universal healthcare system. (I could save money and go private.. But rather support the system.)

Honestly it seems high, but there are so many benefits it actually evens itself out compared to other nations without social benefits like the USA.

Hoping I don't nudge the next tax bracket next year which will increase my marginal tax rate to 39%. - Probably gonna get near it at the very least with the pay rises.

So you got roughly $75k take home from a total of $100k? That’s basically the same in the US.

Average tax rate doesn't include deductions, tax exemptions on some income and more.
Marginal is closer to what I paid.

ironmanDX said:

Salary sacrifice into your super... Or even better mortgage. 

Even if it's just a few thousand. 

I do salary sacrifice a chunk of salary onto a debit card which is tax-exempt, which has been great... But the cap on that is only $15,000.

Just built a brand new home in December, so haven't had the chance to wittle down the mortgage... And wanting to upgrade my PC soon once new hardware drops.



--::{PC Gaming Master Race}::--

Pemalite said:
zorg1000 said:

So you got roughly $75k take home from a total of $100k? That’s basically the same in the US.

Average tax rate doesn't include deductions, tax exemptions on some income and more.
Marginal is closer to what I paid.

Gotcha, still doesn’t seem too crazy considering how much more you guys seemingly get out of it compared to here.



When the herd loses its way, the shepard must kill the bull that leads them astray.