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PostPostMinimalist OP t1_j9dk37t wrote

Reply to comment by birdsaflutter in PSA: New York State tax brackets are not what they seem by PostPostMinimalist

>meant that I took home less money than if I was just below the zone threshold

I don't believe it works this way. Basically at the top of the zone, you pay marginal rate on every dollar. One dollar above, what you pay is the 'table' calculation plus the recapture base amount. This recapture base amount is precisely the difference between your current marginal rate and the previous one times the amount where the new bracket starts, IE it's calculated so that these numbers are the same. Then you add on top of that (incremental benefit) based on a ratio of X/50,000 where X is your amount in the new bracket, so it starts at 0.

Took me a few tries to wrap my brain around it....

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Frisco_Danconia t1_j9f2iln wrote

I had a similar issue last year and did the math multiple times because I just refused to believe it, but there is a zone in which you actually take home less if you earned more and I fell into it. Admittedly, I may have fucked up the math but I don’t think so.

I hate our tax system so much. It’s not at all surprising that high earners are moving to Florida and elsewhere.

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