Methodology and Assumptions

• Taxpayer Profile: Single filer, under 65, no dependents, salaried employee, no itemized deductions (uses standard deduction), no additional tax credits (e.g., EITC).
• Tax Year: 2025 (returns filed in 2026), using inflation-adjusted federal brackets and state tax data from sources like the Tax Foundation.
• Federal Taxes:
  • Standard Deduction: $15,000 (single filer, estimated for 2025).
  • Tax Brackets: 10% ($0–$11,925), 12% ($11,926–$48,475), 22% ($48,476–$103,350).
  • Social Security: 6.2% on income up to $176,100 (2025 cap).
  • Medicare: 1.45% on all income (no cap).
• Healthcare Deductions:
  • $35,000 Income: Likely eligible for subsidized Affordable Care Act (ACA) marketplace plans due to low income (139% of FPL for one person, ~$20,030 in 2025). Assume $100/month ($1,200/year) employee contribution for a silver plan after subsidies (based on Kaiser Family Foundation data).
  • $60,000 Income: May have employer-sponsored insurance (common for middle-income earners). Assume $150/month ($1,800/year) employee contribution for single coverage (per KFF 2024 average of $2,000/year, adjusted).
  • $75,000 Income: Likely employer-sponsored insurance. Assume $200/month ($2,400/year) employee contribution (slightly higher due to income and plan cost trends).
  • Note: Healthcare costs are deducted pre-tax for employer plans, reducing taxable income, but post-tax for marketplace plans. I’ll assume pre-tax for $60,000 and $75,000 (employer plans) and post-tax for $35,000 (marketplace plan).
• State Taxes:
  • Based on 2025 state tax rates, brackets, and standard deductions/exemptions (or 2024 data adjusted for ~2.8% inflation if 2025 unavailable).
  • Nine states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) have no income tax.
  • Local taxes (e.g., NYC) excluded unless significant.
• Data Sources: Tax Foundation, IRS, Kaiser Family Foundation, state revenue websites.
• Limitations:
  • Healthcare costs are estimates based on national averages; actual costs vary by plan, employer, and state.
  • State tax calculations use simplified standard deductions; complex rules (e.g., phase-outs) are approximated.
  • No 401(k) or other voluntary deductions included unless specified.

Federal Tax Calculations (All States)

• $35,000 Income:
  • Healthcare: $1,200/year (post-tax, marketplace plan).
  • Taxable income: $35,000 – $15,000 (standard deduction) = $20,000
  • Federal Income Tax: 10% × $11,925 = $1,192.50; 12% × ($20,000 – $11,925) = $969; Total = $2,161.50
  • Social Security: 6.2% × $35,000 = $2,170
  • Medicare: 1.45% × $35,000 = $507.50
  • Total federal (excl. healthcare): $2,161.50 + $2,170 + $507.50 = $4,839
• $60,000 Income:
  • Healthcare: $1,800/year (pre-tax, employer plan).
  • Taxable income: $60,000 – $15,000 – $1,800 = $43,200
  • Federal Income Tax: 10% × $11,925 = $1,192.50; 12% × ($43,200 – $11,925) = $3,753; Total = $4,945.50
  • Social Security: 6.2% × $60,000 = $3,720
  • Medicare: 1.45% × $60,000 = $870
  • Total federal (excl. healthcare): $4,945.50 + $3,720 + $870 = $9,535.50
• $75,000 Income:
  • Healthcare: $2,400/year (pre-tax, employer plan).
  • Taxable income: $75,000 – $15,000 – $2,400 = $57,600
  • Federal Income Tax: 10% × $11,925 = $1,192.50; 12% × ($48,475 – $11,925) = $4,386; 22% × ($57,600 – $48,475) = $2,013.50; Total = $7,592
  • Social Security: 6.2% × $75,000 = $4,650
  • Medicare: 1.45% × $75,000 = $1,087.50
  • Total federal (excl. healthcare): $7,592 + $4,650 + $1,087.50 = $13,329.50

State Tax Calculations

Notes

• Healthcare Deductions:
  • $35,000: Post-tax marketplace plan ($1,200/year) reflects subsidies for low-income individuals (139% FPL). Actual costs vary by state and plan.
  • $60,000 and $75,000: Pre-tax employer-sponsored plans ($1,800 and $2,400/year) reduce taxable income, lowering federal and state taxes slightly compared to post-tax plans.
• No Income Tax States: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming have the lowest deductions ($6,039, $11,335.50, $15,729.50) due to $0 state tax.
• High-Tax States: Oregon, Hawaii, and D.C. have higher deductions due to progressive tax structures. California’s taxes are moderate but increase with income.
• Social Security and Medicare: Fixed percentages (6.2% and 1.45%) are consistent across states, with Social Security capped at $176,100 (not reached here).
• Effective Tax Rates: Range from 17.3% (no-tax states, $35,000) to 27.3% (Oregon, $75,000). Healthcare deductions increase rates, especially for $35,000 income (post-tax).
• Limitations: Excludes local taxes (e.g., NYC’s 3.078%–3.876%), complex state credits, or other deductions (e.g., 401(k)). Healthcare costs are national averages; actual costs may vary.
• Data: State taxes are estimated using 2024 rates adjusted for inflation where 2025 data is unavailable. Check state revenue websites for exact rates.