California
Our ranking: Least tax-friendly
State income tax: 1% (on income less than $8,544/individual, $17,088/joint) — 13.3% (on income more than $1 million/individual, $1,145,960/joint)
Average state and local sales taxes: 8.55%
Gas taxes and fees: 56 cents per gallon
Some California residents will see their income taxed at the country’s highest rate, 13.3%, which hits taxable income over $1 million for singles and $1,145,960 for married joint filers. For more modest incomes, the tax bite isn’t quite as harsh
The Golden State also has the highest statewide sales tax, at 7.25%. The average state and local combined rate is 8.55%, according to the Tax Foundation; in some cities, the combined rate is over 10%.
Californians have lower property rates than residents of other high-tax states, but in a state with some of the highest real estate prices in the U.S., bills are still pricey. The property tax on the state’s median home value of $409,300 is $3,237. In the Bay Area and other parts of the state where an average home costs upwards of $1 million, the $10,000 cap on state and local tax deductions will effectively increase the cost of property taxes.
