According to Kiplinger, we are #6. At least we aren’t number 1?
State Income Tax: 1% (on taxable income as much as $7,850/individual, $15,700/joint) – 13.3% (on taxable income greater than $1 million/individual, $1,052,886/joint)
Average State and Local Sales Tax: 8.48%
Estate Tax/Inheritance Tax: No/No
California exempts Social Security benefits, but all other forms of retirement income are fully taxed. That’s significant, because residents of the Golden State pay the third-highest effective income tax rate in the U.S.
Early retirees who take withdrawals from their retirement plans before age 59½ pay a 2.5% state penalty on top of the 10% penalty imposed by the IRS.
At 7.5%, state sales taxes are the highest in the country, and local taxes can push the combined rate as high as 10%.
The median property tax on the state’s median home value of $412,700 is $3,160.