California Income Tax: 2022 Rates, Who Pays

The 2.00 percent local tax rate cap is exceeded in any city with a combined sales tax rate in excess of 9.25% (7.25% statewide tax rate plus the 2.00% tax rate cap). Have a local city-level sales tax, potentially in addition to additional local government sales taxes. Click on any city name for the applicable local sales tax rates. California levies a 7.25 percent general sales and use tax, which is the highest statewide rate in the nation. Local california income tax rate governments are permitted to levy additional sales and use taxes, and the combined rate of the additional local taxes should not exceed 2 percent. However, some local governments have been given special dispensation to go above this cap. Clickherefor the California Department of Tax and Fee Administration’s detailed description of the statewide sales and use tax rate, andherefor information on additional city and county sales tax rates.

Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens.

Income Tax in California: How is it Calculated and Collected?

With local taxes, the total sales tax rate is between 7.250% and 10.750%. The 20% of California families with the lowest incomes pay 7.4% of their incomes in combined state and local sales and excise taxes, compared to 0.8% for the richest 1%. Again, because Black, Latinx, and many other Californians of color are more likely to have low incomes than white Californians, regressive taxes like sales and excise taxes exacerbate racial inequity. A key aspect to tax equity is how a tax — or a tax system as a whole — impacts households across income levels.

This may influence which products we write about and where and how the product appears on a page. Here is a list of our partners and here’s how we make money.

The State Business Tax Climate Index Is Your Guide to Economic “Wins Above Replacement”

There is no tuition fee for the H&R Block Income Tax Course; however, you may be required to purchase course materials, which may be non-refundable. The Income Tax Course consists of 62 hours of instruction at the federal level, 68 hours of instruction in Maryland, 80 hours of instruction in California, and 81 hours of instruction in Oregon. Additional time commitments outside of class, including homework, will vary by student. Additional training or testing may be required in CA, OR, and other states. This course is not open to any persons who are currently employed by or seeking employment with any professional tax preparation company or organization other than H&R Block. The student will be required to return all course materials.