6. California
- State Income Tax Range: between 1 percent (on taxable income up to $8,932 for those who file as singles and up to $17,864 for those who file jointly) and 13.3 percent (on taxable income over $1 million for those who file individually; over $1,198,024 for those who file jointly)
- The Average Combined State and Local Sales Tax Rate: 8.68 percent
- The Median Property Tax Rate: around $729 per $100,000 of assessed home value
Well…this is definitely a surprise, isn’t it? But, yeah, the Golden State is indeed a tax-friendly state for middle-class families. In fact, California doesn’t like rich people, since it taxes them quite big.
And while the upper-income tax rate is 13.3 percent, it is not for ALL residents, only a small percentage of Californians have to deal with it. And yes, places like Silicon Valley face a horrible property tax, but other places are quite friendly.
A middle-class family has to pay approximately $2,187 per year for a home valued at $300,000, which is not that big when compared to other states. Also, according to the Tax Foundation, the average combined state and local rate is 8.68 percent and this translates to a quite low rate.
