The number of local households earning more than $1 million has fallen 40 percent since the start of the recession, according to new figures from the state Franchise Tax Board.
About 850 households in the Sacramento region filed tax returns in 2010 listing more than $1 million in annual income, down from more than 1,400 in 2007. The local drop in millionaires outpaced the statewide decline of roughly 25 percent.
The figures show Sacramento County is not the best place to earn a fortune. About 7 of every 10,000 Sacramento County tax returns listed earnings of more than $1 million, roughly 70 percent below the statewide rate.
Loss of investment income and the real estate bust likely explain the trend.
The state's budget woes can partially be explained by lost income from millionaires. They made up just 0.2 percent of the tax returns filed in 2006, but paid almost 25 percent of the state's personal income taxes. When they lose money, it hits the state hard.
The figures, released last month, cover the 2010 tax filing season, meaning they are about two years out of date. The stock market has performed better since then, so its possible this trend has improved in the meantime.
These charts show the number of households filing tax returns listing adjusted gross incomes of more than $1 million.
Sacramento County
Placer County
Yolo County
El Dorado County
Source: Franchise Tax Board
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