The sixth edition of Who Pays does not include the impact of the federal deduction for state and local taxes (SALT) because policy changes in the 2017 federal Tax Cuts and Jobs Act temporarily limited the extent to which the SALT deduction functions as a generalized offset of state and local taxes. Top figure represents total state and local taxes as a share of non-elderly income. Personal income tax rates and brackets reflect law in effect through 2030. Read across the columns labeled The Tax For Filing Status until you find the tax that applies for your taxable income and filing status. to find the range that includes your taxable income from Form 540, line 19. Note: Figures show permanent law in California enacted through September 10, 2018, at 2015 income levels. 2021 California Tax Table To Find Your Tax: Read down the column labeled If Your Taxable Income Is. (See Appendix B for state-by-state rankings and the methodology for additional detail on the index.) The large income gap between lower- and middle-income taxpayers, as compared to the wealthy, is somewhat narrower after state and local taxes than before. Does not levy a tax on estates or inheritancesĪccording to ITEP’s Tax Inequality Index, California’s state and local tax system does not worsen income inequality and ranks 51st on the index.Fails to provide a property tax “circuit breaker” credit for low-income, non-elderly taxpayers.Comparatively high combined state and local sales tax rate.Provides a refundable Earned Income Tax Credit (EITC).Requires the use of combined reporting for the corporate income tax.Limits itemized deductions for upper-income taxpayers.Provides personal income tax credits in place of personal and dependent exemptions.Graduated personal income tax structure. ![]() ![]() Download the table TAX FEATURES DRIVING THE DATA in California Progressive Features California tops the list with the highest income tax rates in the country its highest tax rate is 12.3, but it also implements an additional tax on those with income of 1 million or more, which makes its highest actual tax rate 13.3. Individual figures may not sum to totals due to rounding. Read as PDF CALIFORNIA STATE AND LOCAL TAXES
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