US State Tax Comparisons
The cluster focuses on comparisons of state income taxes, property taxes, and sales taxes across US states, particularly highlighting California's high rates versus no-income-tax states like Texas, Nevada, and Washington, and their impacts on salary, cost of living, and migration decisions.
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In states with no income taxes, it ends up being the opposite.At least you all get a break. I live in a state with relatively high property taxes (1.5%), state income tax, local income tax (both where you work, and where you live, 1.5%), school district income tax (1.5%), state sales tax (6.5%), local sales tax(1-2%), and a whole slew of special interest sales taxes (professional sports stadiums).This is a solidly red, "we hate taxes" state too. Sometimes I wonder if I would sa
0 state income tax, but property taxes are 3% vs 1% or so in California.
I'm going to guess the lack of a state income tax.
At $160k the marginal income tax rate in California is 33.3%, whereas the marginal income tax rate in Nevada or Washington is still 24%. As your income goes up, this ratio goes down. Focusing on the comparatively small state portions of income tax is a red herring, given that money going to the state at least has a better chance of paying for services you value.
Not just that, CA has 11% state tax. If you move a state with lesser state tax you will save on top of that. Most people are moving to Nevada which has no state tax. This could be huge saving.
Fun fact: the NY state + NY city income taxes pretty much equal the entire California state income tax rate. It's not a huge loss given comparable living options.
They have state income tax so I guess that offsets that....
California has state income tax and county-based sales tax, property tax if you own a home. When I owned a house there, I was paying nearly 45% in just federal and state income taxes, even after deducting the house.
In California a large percentage is state income tax not property taxes.
Most likely your parent misunderstands the _marginal_ income tax rates.That said, income tax is not the only kind of tax. In the US, federated government entities mean a mesh of taxes accumulate. Income tax + Payroll Tax + Social Security + Medicare + Property Tax + Sales Tax aggregate. CA and NY are a little higher than other competing states, but not by much.