Thursday, April 15, 2004

Today is tax day.

For fun, I decided to calculate how much I pay in social security, medicare, and federal and state income taxes, as a percentage of my gross income. These should be all the taxes I paid this year, with the exception of property taxes on my car (which are cheap, since it lives in South Carolina) and sales taxes (which are less cheap, since I live in Atlanta), and all the income I earned this year, with the exception of investment income in tax sheltered retirement accounts.

I paid 6.1% in social security taxes, 1.4% in medicare taxes, 9.3% in federal income taxes, and 3.7% in state income taxes, for a total of 20.5% of my income as taxes.

Share of Income Paid in Taxes

Notably, if I were to include a conservative estimate of the change in value in those tax sheltered retirement accounts, the total percent would drop to around 16%.