• 𝙈𝙞𝙖@quokk.au
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      4 days ago

      The mean annual wage for a tradie is $43K, which should put them in the 12% tax bracket.

      So all those other taxes are adding up to an additional 28%? That’s a pretty unfair tax system for such low income earners.

        • SpeakerToLampposts@lemmy.world
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          2 days ago

          After the standard deduction, that’d still put them in the 12% bracket, even if they’re single. And that 12% is just the marginal rate, not the overall rate.

          If single person made $60k in 2025, and only got the standard personal deduction ($15,750), that deduction drops their taxable income to $44,250. Of that:
          The first $11,925 is taxed at 10%, so $1,192.
          The rest ($32,325 = $44,250-$11,925) is taxed at 12%, so $3,879.
          Their total income tax is thus $5,071 (=$1,192+$3,879).
          $5,071 / $60,000 = 0.08452, meaning they’d pay an effective tax rate of 8.452%.