Federal and State Tax Rates

State Corporate & Personal Income Tax Rates and Federal Corporate & Personal Income Tax Rates

State Corporate Income Tax Rates

See Map.  In California, New York, Florida, Illinois and Pennsylvania the corporate tax rate is the same for all taxable income.

Texas has:

  1. No Corporate Income Tax, and
  2. No Personal Income Tax.

Add… Federal Corporate Tax Rates

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Texas, Florida, Illinois, Pennsylvania Personal Income Tax Rates

  1. Both Texas and Florida do not collect any personal income tax regardless of income.
  2. Illinois has a flat 3.75% personal income tax rate regardless of income.
  3. Pennsylvania  has a flat 3.07% personal income tax rate regardless of income.

California has the highest Personal Income Tax Rates in the USA…13.3%

Those earning over $ 1 million pay a 1% surcharge for the Mental Health Services Tax for a total of 13.3%.

So a California business owner (married and filing separately) earning $416,000 personal income would pay…

In 2016 : 11.3 % to CA, 39.6 % to IRS = 50.9 %, if they withdraw funds from “their” 401(k) before age 59.5…

  •  50.9 % + (early withdrawal penalties 10% IRS and 2.5% CA ) = 63.4 % !

In 2022: 11.3 % to CA, 60 % to IRS = 71.3 %, if they withdraw funds from “their” 401(k) before age 59.5…

  •  71.3 % +(early withdrawal penalties 10% IRS+2.5% CA ) = 83.8 % or 32% more !

You pay an additional 6% in taxes for sales and property tax, &  part of all goods and services total = 90% So if you withdraw funds from your 401(k) before 59.5 after taxes & penalties you will get 10 cents on the dollar.

Would you enter into a partnership with anyone where you took all the risks and did all the work and they get 90% and you get 10%?  Well you have — it is your 401(k). 

You fund the 401(k), but it is really the government’s plan since they decide how much you keep, what the terms are to access the 401(k) funds and they can change their mind any time they like without your say so.

New York State Personal Income Tax Rates Max Out at ...6.85%

So a New York business owner earning $416,000 personal income (married and filing separately) would pay…

in 2016 : 6.85 % to NY, 39.6 % to IRS = 46.5 %, if they withdraw funds from “their” 401(k) before age 59.5…

  •  46.5% + (early withdrawal penalties 10% IRS ) = 56.5 %

in 2022 : 6.85 % to NY, 60 % to IRS = 66.85 %, if they withdraw funds from “their”  401(k) before age 59.5 …

  • 66.85% + (early withdrawal penalties 10%  ) = 76.9 % or 36 % more.

You pay an additional 6% in taxes for sales and property tax, &  part of all goods and services…total 82.9%? So if you withdraw funds from your 401(k) after all taxes and penalties you would have 23 cents on the dollar.

Would you enter into a partnership with anyone where you took all the risks and did all the work and they get 77% and you get 23%? Well you have… it is your 401(k). You fund the 401(k), but it is really the government’s plan since they decide how much you keep, what the terms are to access the 401(k) funds and they can change their mind any time they like without your say so.

Texas, Florida, Illinois and Pennsylvania State Personal Income Tax Rates


Texas or Florida business owner earning $416,000 personal income (married and filing separately) would pay…

in 2016 :  39.6 % to IRS = 39.6 %,

if they withdraw funds from “their” 401(k) before age 59 1/2…

  • 46.5% + (early withdrawal penalties 10% IRS ) = 49.6 %

Texas or Florida business owner earning $416,000 personal income (married and filing separately) would pay…

in 2022 :  60 % to IRS = 60 %, if they withdraw funds from “their”  401(k) before age 59.5 …

  • 60% + (early withdrawal penalties 10%  ) = 70 % or 41 % more.

You pay an additional 6% in taxes for sales and property tax, &  part of all goods and services…total 76 % ?
So if you withdraw funds from your 401(k) after all taxes and penalties you would have 24 cents on the dollar.

Would you enter into a partnership with anyone where you took all the risks and did all the work and they get 76% and you get 24%? Well you have… it is your 401(k).
You fund the 401(k), but it is really the government’s plan since they decide how much you keep, what the terms are to access the 401(k) funds and they can change their mind any time they like without your say so.

So a Illinois or Pennsylvania  business owner earning $416,000 personal income (married and filing separately) would pay…

Illinois in 2016 : 3.75 % to IL, 39.6 % to IRS = 43.4 %, if they take funds from “their” 401(k) before age 59.5…

  •  43.4% + (early withdrawal penalties 10% IRS ) = 53.4 %

Penn in 2016 : 3.07 % to PN, 39.6 % to IRS = 42.7 %, if they take funds from “their” 401(k) before age 59.5…

  • 42.7% + (early withdrawal penalties 10% IRS ) = 52.7 %

Illinois in 2022 : 3.75 % to NY, 60 % to IRS = 63.8 %, if they take funds from “their”  401(k) before age 59.5

  • 63.8% + (early withdrawal penalties 10%  ) = 73.8 % or 38 % more.

Penn in 2022 : 3.07 % to NY, 60 % to IRS = 63.1 %, if they take funds from “their”  401(k) before age 59.5

  • 63.1% + (early withdrawal penalties 10%  ) = 73.1 % or 39 % more. Proof IRS taxes going to 60% by 2022.

You pay an additional 6% in taxes for sales and property tax, &  part of all goods and services…total 82.9% ?
So if you withdraw funds from your 401(k) after all taxes and penalties you would have 23 cents on the dollar.

Would you enter into a partnership with anyone where you took all the risks and did all the work and they get 77% and you get 23%? Well you have… it is your 401(k). You fund the 401(k), but it is really the government’s plan since they decide how much you keep, what the terms are to access the 401(k) funds and they can change their mind any time they like without your say so.

209-814-6865 | JLM@BankingLikeTheRich.com

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