What is my tax bracket?

When it comes to taxes, everyone is placed into a bracket according to their income level. Generally, the higher your income, the higher your tax bracket. In California, the tax brackets for 2020 range from 1% to 13.3%. The tax rate you are in depends on the amount of taxable income you have. Taxable income is the amount of income you have after you subtract deductions. Income below $8,764 is taxed at the lowest rate of 1%. Income between $8,764 and $19,925 is taxed at 1.5%. Income between $19,925 and $31,764 is taxed at 2%. Income between $31,765 and $44,526 is taxed at 4%. Income between $44,526 and $56,295 is taxed at 6%. Income between $56,296 and $286,492 is taxed at 8%. Income between $286,493 and $1,000,000 is taxed at 9.3%. Income between $1,000,001 and $2,999,999 is taxed at 10.3%. Income between $3,000,000 and $7,999,999 is taxed at 11.3%. And income that’s $8,000,000 or more is taxed at the highest rate of 13.3%. To find out which tax bracket you’re in, you need to calculate the amount of taxable income you have. This calculation can be complex and it’s best to get help from a tax professional.

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What is my tax bracket?

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