How much is left after total income taxes are paid at $50K and $200K of income?
Here’s a helpful yet limited survey — comparing the states’ income tax paid on earned income — combined with the federal income tax. The comparison uses $50K and $200K salaries.
CA has a highly progressive state income tax, so we don’t rank TOO badly at $50K. At $200K, CA is a close second to Oregon — the worst state.
Indeed, at $200K, less than $100 tax separates these worst two states — they are essentially tied. CA moves to #1 above $200K (not included in the article), and the difference between the two states becomes more pronounced, the higher one’s income is above that $200K benchmark.
This comparison counts only earned income — capital gains and dividends are treated differently by many states (NOT California). And it understandably doesn’t include other taxes — notably property taxes and sales taxes. That would constitute a MAJOR project with lots of logistical… Read More