California is Tax Hell!

No wonder that state is in the economic outhouse!

These are our state’s tax rates, according to the Retirement Living Information Center. Keep in mind many more taxes may be headed our way to close the current budget deficit.

1. Sales Taxes: Tax: 8.25%-10.5% (Some food and prescription drugs exempt.)
2. Gasoline Tax: at 46.6 cents/gallon: some localities include an additional one cent per gallon.
3. Diesel Fuel Tax: at least 48.7 cents/gallon
4. Personal Income Taxes: 1.25%-9.55%. In 2010 the state enacted a 0.25 percentage point increase in each income tax bracket. A tax credit for dependents was reduced from $309 to $98.

5. Retirement Income Taxes: Social Security and Railroad Retirement benefits are exempt, but we have a 2.5% tax on early distributions and qualified pensions. All private, local, state and federal pensions are fully taxed.

6. Property Taxes are assessed at 100% cash value of the property. The maximum amount of tax on real estate is limited to 1% of the full cash value. Under the homestead program, the first $7,000 of the full value of a homeowner’s dwelling is exempt. The Franchise Tax Board’s Homeowner Assistance program, which provided property tax relief to persons who were blind, disabled, or at least 62 years old, and met certain minimum annual income thresholds, has been halted. The state budgets approved for the 2008/2009 and 2009/2010 fiscal years deleted funding for this Homeowner and Renter Assistance Program that once provided cash reimbursement of a portion of the property taxes that residents paid on their home.

7. Inheritance and Estate Taxes: There is no inheritance tax. However, there is a limited California estate tax related to federal estate tax collection.

2 thoughts on “California is Tax Hell!”

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