WHAT IS THE AFTER TAX SALARY OF A DOCTOR IN THE US?
“Working as a doctor in the US high salary but after taxes it’s not much left!”
This is the comment I received the most after the video Talk about the income of doctors in America.
So is it really true? But why does everyone who comes to America complain about paying taxes? Will American “capitalism” take all the doctors’ salaries and leave only a minimum amount for them to cover their daily lives?
Today I want to share and “reveal the truth” about a delicate and rarely mentioned issue in today’s society, whether in the US or even in Vietnam based on my experience of living in the US for more than 20 years and as a doctor who has worked in the US health system for nearly 10 years.
1. How much is the income tax for doctors in the US?
In the US, as long as you work and have money, you will have to pay personal income tax.
Federal income tax is applied according to a progressive tax rate, with the highest rate being 37% for income over $539,900 (for single people) or $647,850 (for married couples filing jointly). In addition, there is a state income tax, which ranges from 0% to 13.3% depending on the state of residence.
The total tax rate (federal and state) that doctors must pay depends on many factors such as marital status, number of children, deductions and tax credits…
On average, doctors can expect a total tax rate of 25% to 36%.
2. Average income of doctors compared to Americans
According to Medscape statistics in 2023, the average income of doctors in the US is about 363,000 USD ~ 9.2 billion per year. Meanwhile, the average income of an American is about $59,384 ~ 1.5 billion/year.
Thus, even after deducting 30% of taxes, doctors still have a net income of about 254,100 USD ~ 6.4 billion/year, much larger than the average income of Americans, enough for them and their families to have a financially comfortable life.
Many families only need one person to be a doctor, the other person can stay home to take care of the children and still maintain a comfortable standard of living (if not overspending).
3. Income tax rates in other countries
In developed countries, personal income taxes are often quite high, especially for high-income earners like doctors.
Example:
- In Germany: Progressive tax system with the highest tax rate up to 45% for income over 277,826 EUR (about 7.3 billion VND).
- In Australia: The highest tax rate is 45% for income over 180,000 AUD (about 2.9 billion VND).
- UK: The highest tax rate is 45% for income over 150,000 GBP (about 4.7 billion VND).
- France: The highest tax rate is 45% for income over 160,336 EUR (about 4 billion VND).
- Canada: The highest tax rate is 33% for income over 253,414 CAD (about 4.5 billion VND).
- Japan: The highest tax rate is 45% for income over 40 million JPY (about 6.7 billion VND).
As you can see above, many countries in the world have much higher tax rates than the US, especially for people with good incomes in developed countries. The highest tax rate usually ranges from 45% to 50%, even in European countries, the total tax and social contributions can be up to 60%.
Besides, I think if I live in a stable country and have the conditions to have a good job, paying taxes is also an inevitable obligation of every citizen.
Thanks to these taxes, the government is able to provide public services and social welfare to the less fortunate in society. For example, free medical care, education, school lunches, and monthly subsidies for people with low incomes.
For example, in the US, if you have a low income, you may qualify for free health insurance through the Medicaid program. Your children can also attend public schools for free and receive free lunches if your family meets certain income criteria.
In addition, there are many practical subsidy programs for new immigrants, including Vietnamese. These programs can include housing assistance, job training, English language lessons, and temporary financial assistance to help them stabilize their lives.
So where does all this assistance come from? It all comes from taxes!
Therefore, paying taxes is not only a legal obligation but also a way for us to contribute to the development of society, ensuring that everyone has the opportunity to access basic services and have a better life.
For those who With high incomes like doctors, paying taxes does not make their lives financially difficult, on the contrary, it helps many weaker people. For me, this is also a kind of happiness when helping others.
And you, what do you think about this issue?
Dr. Christina Nguyen
The Phoenix Medical Academy
