15 States with the Highest Tax Burden in the US

1. California

State Tax Burden: 22.40%

Income Tax: 14.40%

Sales Tax: 7.25%

Property Tax: 0.75%

California has the highest top individual income tax rate of 14.40%, while the lowest income tax rate is 1%. There are nine state income tax brackets in California. The state implies a progressive tax structure, which means the more you earn, the higher your tax rate is. The 1% income tax is imposed on income ranging from $0 to $10,412. Other tax brackets include tax rates of 2%, 4%, 6%, 8%, 9.30%, 10.30%, 11.30%, and 12.30%. The 12.30% individual income tax rate is applicable on income equal to $698,272 or more. For married couples filing jointly, the highest tax rate of 12.30% is imposed on income equal to $1,396,542 or more.

The standard deductions in California for 2023 tax returns are $5,363 for individual or married couples filing separately and $10,726 for married couples filing jointly. California has a state sales tax of 7.25%. Many cities and counties also levy a local sales tax, which can increase the total sales tax rate up to 10.75%. With a total tax burden of 22.40%, California has the highest tax burden in the US in 2024.

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