In this second part of the halftime report for Tax Foundation Forum: Making Sense of Profit Shifting, we discuss the key takeaways from the first half of our series on profit shifting (read part I here). In this post, we...
The facts on California’s Tax Climate
13.3%individual income taxTop rate
8.84%corporate income taxFlat rate
$1363property taxcollections per capita
California's Individual Income Tax System
California's personal income tax system consists of ten brackets and a top rate of 13.3%. That rate ranks highest among states levying an individual income tax. California's state and local income tax collections per person were $1454 in 2012 which ranked 7th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
California's Corporate Income Tax System
California's corporate income tax system consists of a flat rate of 8.84%. That rate ranks 8th highest among states levying a corporate income tax. California's state and local corporate income tax collections per person were $210 in 2012 which ranked 9th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
California Sales and Excise Taxes
California levies a 7.5% general sales or use tax on consumers, which is above the national median of 5.95%. The average local sales tax rate is an additional 0.94%. California's state and local governments collect $1082 per person in general sales taxes and $396 per person in excise taxes, for a combined figure of $1478, which ranks 23rd highest nationally. California's gasoline tax stands at 45.4¢ (2nd highest nationally), while its cigarette tax stands at $0.87 (19th lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
California Property Tax Collections Average
California's state and local governments collected approximately $1363 per person in property taxes in 2012, which ranks 21st highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 30th in California
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, California taxpayers worked until April 30th (4th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Oregon, April 20th (ranked 16th latest nationally); Nevada, April 8th (ranked 7th earliest nationally); Arizona, April 11th (ranked 15th earliest nationally); and Hawaii, April 15th (ranked 25th latest nationally).
California's State and Local Tax Burden Above National Average
California's 2011 tax burden of 11.4% ranks 4th highest out of 50 states, and is above the national average of 9.8%. California's taxpayers pay $5136 per capita in state and local taxes.
California's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
California's 2015 Business Tax Climate Index Ranks 48
California ranks 48th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Oregon, 12th, Nevada, 3rd, Arizona, 23rd, and Hawaii, 30th.
State Business Tax Climate Index (full study)
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