#Why am I getting taxed by 31% when I set it to 25% in the settings?

1 messages · Page 1 of 1 (latest)

thin saddle
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I should be getting taxed 50%, because my company is based on the city map with 25% added tax. Am I misunderstanding the tax system?

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copper kelp
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Are you in the city? I believe the tax is different depending on where your office is

thin saddle
copper kelp
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Ah, I think I get it. The local tax is a tax % based off what your general tax is

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25% general tax. And the city taxes 25% of that, which is 6.25% atop the 25%

thin saddle
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So local tax is 25% of the 25% general tax? That makes sense. Thank you!

copper kelp
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Yes. I just quickly calculated with that in mind and got 31.25%

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So it adds up 😄