It would be hard to find anyone who doesn’t complain about taxes at one time or another. In California there is a lot to complain about with the high taxes. So how does California actually rate among other states?
It doesn’t take much research to find out that California has some of the highest taxes in the country. According to the Tax Foundation, a non-profit research group in Washington D.C., California state taxes are among the highest in the country. Here’s what you’ll be paying in various taxes in California.
The state-level sales tax in California tops out the nation at 7.25 percent as of 2017. It was even higher at one point, topping out at 7.5 percent. If you combine that with local taxes the rate can reach as high as 10 percent in some California cities.
On top of the high sales taxes, there are also excise taxes such as the one on cigarettes which will cost you $2.87 on top of the price of a pack. The price of gasoline has long been the cause of many complaints in California and with good reason. Gas runs an additional 27.8 cents a gallon, which includes a base excise tax of 18 cents and an additional “price-based” tax of 9.7 cents. On November 1, 2017 the base tax for gas started to go up even more and will top out at 30 cents in July of 2019.
Run that all together with California property tax, California state income tax, Capital gains taxes in California and you can start seeing the picture of why California is one of the most expensive places to live in this country when it comes to taxes.
About the only break Californians get is when they die because there is no inheritance tax. Ever since January 1, 2005 when federal estate tax laws changed, California’s estate tax was eliminated.