Overall Rating for Middle-Class Families: Most tax-friendly
California’s sales tax is actually a 7.25 percent levy, but localities can add even 2.5 percent, the average combined rate being 8.68 percent, as per the Tax Foundation stats. Footwear, clothing, and motor vehicles are all taxed, but luckily, prescription drugs and groceries aren’t.
Fortunately, the high sales tax is leveled up by income taxes. The lowest income tax is 1 percent applied on $17,864 of taxable income for those who are married and file jointly and $8,932 for single filers. The highest rate is 13.3 percent on $1 million for single filers and $1,198,024 for married joint filers.
Those who dream of becoming homeowners should know that the Golden State’s median property tax rate is $729 per $100,000 of assessed home value.