3) California
Top state income tax rate: 13.3 percent
State sales tax: 7.5 percent
Per capita property tax: $1,426
California has the dubious distinction of having the highest top income tax rate in the country. Its 13.3 percent rate kicks in at $1 million of taxable income. It also has the highest state-wide sales tax rate and mandates a 1 percent local tax rate on top of that. Its property taxes, however, are pretty reasonable relative to the rest of the country.
