California
Top State Income Tax Rate: 13.3 percent
Sales tax: 7.5 percent
Property tax per capita: $1,450
California has one of the highest income taxes in the country and imposes an alternative minimum tax on both individuals and corporations. The Golden State relies heavily on the income tax revenue generated by its richest residents. This year such revenues are expected to comprise two thirds of California’s general-fund reserves. Its 7.5 percent sales tax rate includes a mandatory statewide local tax of 1 percent.
