California Does Not Have a Friendly Tax Climate for Retirement

California has no program to attract retirees to the state, and furthermore does not a very friendly tax climate for retirement. For starters, California has high sales taxes and income taxes. Bottom line, as a retiree you will probably be worse off tax-wise retiring in California than most other states. For more information go to California Franchise Tax Board


Overall Tax Burden

California's state and local tax burden is 6th highest in the U.S. The Tax Foundation estimates its total tax burden at 10.5% of income, well above almost every other state.


Income Tax

California has one of the highest maximum tax rates in the country at 10.55%. There are 7 brackets



Pension income is not taxed as long as it doesn't come directly as dividends or income.


Property Tax

Per capita property taxes are about average for the U.S. Proposition 13 is a good thing for retirees in that it permits revaluations only after the sale of a property. This helps protect homeowners from big swings in their taxes.


Sales Tax

California charges 8.25% sales tax, one of the highest in the nation. Towns are permitted to add an additional 1.5% sales tax. Gasoline taxes are the second highest in the nation. Cigarette taxes are lower than average.


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