Taxes

Tax Rates & Information

California’s tax burden is slightly above the average of all states but below the average of other industrial states. The state has one of the largest economies in the world and supports new businesses and industries through available tax credits.

Though personal income taxes are above average, the state has one of the lowest property tax rates. State income taxes are levied according to income levels and are used to provide valuable public services, education, parks, roads, and public safety that improve residents’ quality of life.

Sales Tax Rates

• California sales tax rate - 6%

• County tax - .25% + .5% Measure A

• Local 1%

The California Competes Tax Credit (CCTC) is an income tax credit available to businesses that want to locate in California or stay and grow in California. Businesses of any industry, size, or location compete for over $180 million available in tax credits by applying in one of the three application periods each year. Applicants will be analyzed based on fourteen different factors of evaluation, including number of full-time jobs being created, amount of investment, and strategic importance to the state or region.

California is one of 45 states to levy a broad-based tax on corporate profits, and its CT is the state’s third largest source of General Fund revenues. The CT encompasses three different individual taxes—the corporate franchise tax, corporate income tax, and bank tax.