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What are state income taxes like here?

Question & Answer about San Diego, California Q & A's

Updated April 26, 2026

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Question:
What are state income taxes like here?

California has a progressive state income tax system with rates ranging from 1% to 13.3%, making it one of the highest in the United States. The tax brackets are structured so that higher earners pay a larger percentage of their income, and the top rate applies to individuals with taxable income above approximately $1 million.

The state income tax applies to wages, salaries, interest, dividends, capital gains, and other income sources. California also allows various deductions and credits, but the overall tax burden tends to be relatively high compared to many other states. Residents in cities like Los Angeles, San Francisco, and San Diego often face this higher tax rate, reflecting California’s extensive public services and infrastructure funding needs.

Key Points:
- Progressive rates from 1% to 13.3%
- Highest rate applies to income above about $1 million
- Applies to most types of income
- Higher taxes help fund state programs and services

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