The cost of daily needs like food and petrol is rising due to record-high inflation, so Americans are looking for every opportunity to save money.
Taxes are one expense that everyone must pay, though.
California has the highest personal income tax in the US, with a top rate of 13.3%, according to Intuit TurboTax. That tax rate does not, however, apply to everyone.
A 13.3% rate is applied to California residents who earn income than $1 million annually. On the other hand, the state’s tax rates vary based on your income from 1% to 12.3%.
The ten states with the highest rates of individual income taxes
- California: 13.3%
- Hawaii: 11%
- New Jersey: 10.75%
- Oregon: 9.9%
- Minnesota: 9.85%
- District of Columbia: 8.95%
- New York: 8.82%
- Vermont: 8.75%
- Iowa: 8.53%
- Wisconsin: 7.65%
California’s median household income, as reported by the 2020 U.S. Census Bureau, is $78,672. A single taxpayer would pay $4,321.00 in state income taxes in 2021 according to the California tax calculator, ignoring other costs.
Nine states—Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming—tax residents’ other assets, such as property, but not their income.
Some citizens of the Golden State are curious about the purpose of the high income tax rates.
The highest rate in the nation is 12.3%.
Taxes are often used to pay for public primary education, parks, roadways, and public safety, according to the Legislative Analyst’s Office of the state.
Fortunately, some Californians may soon see financial relief.
More than half of the qualified residents have received their Middle-Class Tax Refund through direct payments or debit cards.
In accordance with the most recent information available, the Franchise Tax Board, the state department in charge of disbursing the payments, indicates that at least 6,739,880 direct deposits have been issued and 2,556,729 debit cards have been mailed out.
A total of $5 billion has already been distributed.
According to the state, all payments must be made by the end of January 2023.
(Source Credit: This article was originally published by KTLA on Dec 2nd ,2022.)