Skip Ribbon Commands
Skip to main content

California state and local tax rates rank among lowest in country, but negated by high cost of living

• California ranks 8th overall for lowest effective state and local tax rate at 8.77%.  Using median U.S. household income, this is $4,888 each year.

• However, the high cost of living in California drops it to an adjusted 36th overall.

• Population growth statistics recently released by the Department of Finance show Bay Area population growth slowing, which can partly be attributed to rising home prices and expensive cost of living.

Source:, CA DOF, Axiometrics

Get our latest insights


Connect with us