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Taxes In California

California Tax Rates, Collections, and Burdens

How does California’s tax code compare? California has a graduated state individual income tax, with rates ranging from 1.00 percent to 13.30 percent. California has a 8.84 percent corporate income tax rate. California has a 7.25 percent state sales tax rate, a max local sales tax rate of 4.75 percent, and an average combined state and local sales tax rate of 8.85 percent. California has the highest gas tax rate in the nation at 77.90 cents per gallon. California’s tax system ranks 48th overall on our 2024 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and California is no exception. The first step towards understanding California’s tax code is knowing the basics. How does California collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

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Tax Data by State

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State Tax Data

Individual Taxes

Top Individual Income Tax Rate
13.3%See Full Study
State Local Individual Income Tax Collections per Capita
$3729Rank: 1
State and Local Tax Burden
11.5%Rank: 43See Full Study

Business Taxes

Top Corporate Income Tax Rate
8.84%See Full Study
State Business Tax Climate Index Ranking
48See Full Study

Sales Taxes

State Sales Tax Rate
7.25%Rank: 1See Full Study
Average Local Sales Tax Rate
1.6%See Full Study
Combined State and Average Local Sales Tax Rate
8.85%Rank: 8See Full Study
State and Local General Sales Tax Collections per Capita
$1498Rank: 15
State Gasoline Tax Rate (cents per gallon)
77.90¢Rank: 1
State Cigarette Tax Rate (dollars per 20-pack)
$2.87Rank: 2

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
0.75%Rank: 33
State and Local Property Tax Collections Per Capita
$1955Rank: 15

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