California

The facts on California’s Tax Climate

California's Individual Income Tax System
California's individual income tax system consists of 10 brackets with a top rate of 13.3%. The top rate ranks 1st highest among states levying an individual income tax. California's state and local income tax collections per person were $1753 in 2013, which ranked 4th highest nationally.

50-State Table of Individual Income Tax Rates

 

 

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 $228 in 2013 which ranked 10th highest nationally.

50-State Table of Corporate Income Tax Rates

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 0.98%. California's state and local governments collect $1,159 per person in general sales taxes (17th nationally) and $507 per person in excise taxes (24th nationally). California's gasoline tax stands at 40.62 cents per gallon, 5th highest nationally, while its cigarette tax stands at $0.87, 34th highest nationally.

50-State Table of State and Local Sales Tax Rates

California Property Tax Collections Average
California's state and local governments collected approximately $1,365 per person in property taxes in 2013, which ranks 22nd nationally.

For 50-state tables of property tax collections, visit our latest web edition of Facts & Figures, or download our mobile app for Apple and Android.

Tax Freedom Day Arrives on April 30th in California

Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, California taxpayers have to work until April 30th (45th earliest nationally) to pay their total tax bill.

California's State and Local Tax Burden Ranks 6th

California's 2012 tax burden of 11% ranks 6th highest in the nation, and is above the national average of 9.9%. California's taxpayers pay $5,237 per capita in state and local taxes.
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 2016 Business Tax Climate Index Ranks 48th

California ranks 48th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (35th), individual income taxes (50th), sales taxes (40th), unemployment insurance taxes (13th), and taxes on property (13th), including residential and commercial property.
State Business Tax Climate Index (full study)

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