11–20 of 51 posts
In Denmark it's always pre-tax, because tax laws are so complicated that not even the tax authority knows how much you'll end up paying, and so we have an "adjustment" after the fact where you'll either get to pay an amount more, or get an amount back.. It's hilariously sad.
Always before, but you should also factor in local taxes and cost of living yourself when evaluating an offer.
I'd also like to stress that, along with taxes, there are also tax benefits in play, which are highly dependent on your personal circumstances and willingness to pursue them, and can also have a limited timespan.
For instance, some European countries offer generous tax benefits to highly skilled professionals willing to relocate which are only applicable for a few years and require the employee to jump through a few hurdles to benefit from them. If we leave it to recruiters to do the tax math, unscrupulous recruiter might use that to create inflated expectations regarding net salary and disposable income.
For salary in my country (Australia) though, the figure usually doesn’t include superannuation (payments into a kind of third party pension fund) which is applied on top (legislated as a compulsory 10% on top of the wage).
People quote pre-tax salaries. The after-tax salary depends not only on the taxing jurisdiction but on the spouse's income if any, since that affects the marginal tax bracket.
> The after-tax salary depends [...] on the spouse's income This is not true, in some countries. In the US it is true.
I know in Estonia, it is always after taxes, since tax laws are sufficiently simple that people pay the same percentage. In Denmark it's always pre-tax, because tax laws are so complicated that not even the tax authority knows how much you'll end up paying, and so we have an "adjustment" after the fact where you'll either get to pay an amount more, or get an amount back.. It's hilariously sad.
That seems like something the US/UK would have so they can place infinite carve outs for special interest groups.
An unmarried person making $150,000 In San Francisco would pay $37,816 in taxes for a net income of $112,184.
If that same person was married with a non-working spouse the same person would pay only $29,836 in taxes for a net income of $120,164.
This person could also legally reduce their tax burden by contributing to retirement accounts. Let's take the married San Franciscan if they maxed out their 401k contributions they'd pay $25,546 in taxes for a net income of $124,454. If they moved to Texas then they'd pay $25,546 in taxes, or a net of $124,454
Those are just no frills situations with standard deduction, employees can have itemized deductions that reduce their tax burden more.
Calculations come from https://smartasset.com/taxes/income-taxes
People quote pre-tax salaries. The after-tax salary depends not only on the taxing jurisdiction but on the spouse's income if any, since that affects the marginal tax bracket.
> The after-tax salary depends [...] on the spouse's income This is not true, in some countries. In the US it is true.