The Worst State to Live In for Taxes

California is a killer when it comes to taxes. After analyzing the tax policies of all 50 states and the District of Columbia, we ranked the Golden State the absolute worst in terms of the overall tax bite that it takes out of its residents.

Where to begin? How about with the state income tax. California’s rates are the highest in the nation. Making matters worse, capital gains are taxed as regular income.

California also has the highest statewide sales tax, at 7.5%. Throw in local sales taxes, and the combined rate can run as high as 10%. Gas taxes and fees are high, too.

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just ~~$107.88~~ $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

https://cdn.mos.cms.futurecdn.net/flexiimages/y99mlvgqmn1763972420.png

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

On a somewhat positive note, Californians pay lower property taxes than residents of other high-tax states. But in a state with some of the highest real estate prices in the U.S., they’re no bargain.

There are nine other states that are particularly tax-unfriendly to residents. Take a look.

In his former role as Senior Online Editor, David edited and wrote a wide range of content for Kiplinger.com. With more than 20 years of experience with Kiplinger, David worked on numerous Kiplinger publications, including The Kiplinger Letter and Kiplinger’s Personal Finance magazine. He co-hosted Your Money's Worth, Kiplinger's podcast and helped develop the Economic Forecasts feature.