CA state income tax rate is now 34% higher than the 2nd highest state — vs. “only” 21% higher in 2015
Bad news for California. Other states are dropping their state income tax rates for the well-to-do, making those states ever more attractive for wealthy folks — compared to the money-grabbing Golden State.
In 2015, CA was “only” 21% higher than the 2ndhighest state — Hawaii. But starting in 2016 Hawaii has dramatically cut their top rate from 11% to 8.25%. A very liberal state, Hawaii’s politicians nevertheless figured out that it should welcome rich people rather than drive them away.
That locks in California’s “worst” rank among the 50 states. With our 13.3% top tax rate, we are now 34% higher than the 2ndhighest state. Oregon is #2, with a top rate of 9.9% — down from the 11% they charged a couple years ago.
Below is my updated summary of the CA income tax, as found in my constantly updating fact sheet comparing CA with the other 49 states. Note the update to the nation’s highest tax brackets(inbold):
Prior to… Read More