5 Least Tax Friendly States for Middle Class Families

1. California

Income Tax: 9.3%

Sales Tax: 7.25%

Weighted Average Tax: 8.48%

California has the highest state sales tax rates in the country. In certain areas of the state, the total sales tax rate can reach as high as 10.75%, while Los Angeles currently maintains a total rate of 9.5 percent (as of April 1, 2023). California also imposes an 8.84 percent corporate income tax rate, making it even the most tax unfriendly state for corporations. Regardless, there’s a lot of corporations in California, particularly tech corporations in the silicon valley, due to a huge talent pool. According to Tax Foundation, the average combined state and local sales tax rate in California stands at 8.82 percent.

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