The Worst State to Live In for Taxes? California
High taxes take a toll on residents of the Golden State.
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.
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.