Compare sonjas after-tax income


Sonja is a United States citizen who has worked in Spain for the past 9 months. She received $6,000 a month as compensation. Her employer has offered to extend Sonja's contract to work in Spain for another 6 months at the same rate of pay. If she rejects the offer, she can return to the United States and received the same salary. While working in Spain, she is subject to the Spain income tax, which is approximately 11% of her gross pay. The marginal tax rate on her income tax in the United States is 33%. Compare Sonja's after-tax income assuming she remains in Spain with her after-tax income if she returns to the United States.

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Accounting Basics: Compare sonjas after-tax income
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