Prince Harry and Meghan Markle may now be rubbing elbows with the likes of Ellen DeGeneres and Oprah given their choice of residence. However, the real question is: how long can they sustain their lifestyle at the land of the VERY rich and famous?
A new report has claimed that if the two genuinely want to make California the home where baby Archie will grow up into a fine young man, they have to work so hard. The two are hardly lazy ducks, but they have to work so much harder than they are already working now.
At the present rate, the two might lose their California dream if they do not start earning more.
California Taxes Can Drive Prince Harry and Meghan Markle Away?
The taxes imposed by the state of California is enough to drive people away.
Prince Harry and Meghan Markle were able to enter this prestigious state, but they have to exert so much more effort to stay there -- especially if they are adamant not to receive any financial aid from the palace and pursue their dream of "financially independent" lives.
Contrary to past reports, the two are not being financially supported by Prince Charles. That's well and good, but whether or not it is practical and doable when they do not have as many earning jobs as their neighbors is a real concern.
Should they continue on, the Duke and Duchess of Sussex would have to give away around 50 percent of their combined earned income just for tax. The other 50 percent may or may not be enough to sustain their lives in California, depending on how they choose to live. This could be limiting, either way.
Earning more might not even be the answer, because earning more means getting taxed at a higher rate.
In California, the top rate is 13.3 percent for people earning higher than $1 million. Other states do not have state income tax at all, but this is the price Prince Harry and Meghan Markle would have to pay to live in this prestigious area.
Meanwhile, they also have to worry about the top rate of federal tax, which is at 37 percent for earnings beyond $510,301.
Prince Harry Inheritance in Danger of Being Taxed?
Presently, the careers of the Prince Harry and Meghan are effectively stifled because of the pandemic.
Should Meghan truly be able to get back to her Hollywood career, then this is of course good news. However, she would be coughing up certainly a lot just for taxes. If she earns even more, then the tax rate for her can even reach 50 percent. The same goes for Prince Harry and his speaking and documentary dreams.
What's more, the state legislators are now in discussions to further raise the taxes to 16.8 percent and add a 0.4 percent wealth tax. There is no doubt that the royals-turned-celebrities would be affected! The wealth tax can even cut through the inheritance Prince Harry got from his mom, Princess Diana.
Of course, this still depends largely on Prince Harry's part if he's even a US citizen for tax purposes -- if he has a green card and the like. He has paused getting one, and this might be one of the reasons why.
Meghan is a U.S. citizen and therefore liable. Is living in California worth all these?