Sacramento Bee Logo

California taxes: Who's paying the most? | The Sacramento Bee

×
  • E-edition
    • Customer Service
    • SacBee Rewards
    • About Us
    • About Us
    • Contact Us
    • Apps
    • Mobile & Apps
    • Twitter, Facebook, Google+, YouTube
    • News in Education (NIE)
  • Newsletters

    • Sacramento Region
    • Arena
    • City Beat
    • Crime
    • Local Govt Salary Database
    • The Homeless
    • Marcos Bretón
    • Transportation
    • Education
    • Environment
    • Health & Medicine
    • Traffic Conditions
    • Weather
    • Communities
    • Elk Grove
    • Folsom/El Dorado
    • Roseville/Placer
    • Yolo
    • Sports
    • Kings
    • NBA News
    • 49ers
    • Giants
    • Oakland A's
    • High School Sports
    • Joe Davidson
    • More Sports
    • Raiders
    • NFL News
    • MLB News
    • River Cats
    • Soccer
    • Colleges
    • Golf
    • Autos Racing
    • Politics
    • Capitol Alert
    • State Workers
    • The California Influencer Series
    • Local Elections
    • PoliGRAPH
    • State Worker Salary Database
    • Legislative Gifts
    • Local Elections
    • California Elections
    • Election Endorsements
    • Election 2018
    • Voter Guide
    • Investigations
    • Data Tracker
    • Public Eye
    • Afghan Refugees
    • Nursing Homes
    • Opinion
    • Editorials
    • Election Endorsements
    • Viewpoints
    • Influencers Opinion
    • California Forum
    • Letters to the Editor
    • Submit a Letter
    • Jack Ohman
    • Editorial Board
    • Entertainment & Life
    • Arts & Theater
    • Books
    • Home & Garden
    • Movies
    • Music
    • Outdoors
    • Pets
    • Travel
    • More Entertainment
    • Events Calendar
    • Horoscopes
    • Comics
    • Puzzles
    • TV Listings
    • Sacbee Rewards
    • Food & Drink
    • Restaurants News & Reviews
    • Restaurant Directory
    • Cooking & Recipes
    • Beer
    • Wine
    • Appetizers Blog
    • California
    • Big Valley
    • Marijuana
    • Wildfires
    • Water & Drought
    • Lottery
    • Business
    • Real Estate
    • Market Summary
    • Cathie Anderson
    • Nation & World
    • National
    • World
    • Technology
    • Family
    • Celebrities
    • TV news
    • Weird News
    • Video Break
    • News Obituaries
    • Death Notices
    • FAQ
    • ObitMessenger
    • In Memoriam

    • The Sacramento Bee Store
    • Golf Card
    • Farm to Fork Dining Card
  • Jobs
  • Moonlighting
  • Cars
  • Homes
  • Classifieds
  • Legal Notices
  • Place an Ad
  • Advertise
  • Mobile & Apps

Data Tracker

California taxes: Who's paying the most?

By Phillip Reese - preese@sacbee.com

    ORDER REPRINT →

March 31, 2010 09:44 PM

It's tax time in California again -- state tax returns must be filed by April 15. But who is paying the most state income taxes? Which counties bear the most burden? And how much have state taxes gone up over the years? Check out the graphics below to see ...



Here's the breakdown:

· The wealthy are paying about two-thirds of the state's income taxes.

· California's cities are largely subsidizing rural areas.

· Average income taxes paid have risen sharply.

· But, even with inflation, most Californians earn more than they did a few decades ago.






Sign Up and Save

Get six months of free digital access to The Sacramento Bee

SUBSCRIBE WITH GOOGLE

#ReadLocal

An uneven burden

Like everywhere else, California has a progressive income tax system, with the wealthy paying more than the poor. Unlike everywhere else, California has a really, really progressive income tax system. When it comes time to raise taxes, we say, "Don't tax me, tax the rich people who can afford it." Residents earning north of $200,000 control 39 percent of the state's income, but pay 66 percent of its income taxes. This chart shows the proportion of income taxes paid by income level during the 2007 tax year. Incomes reflect amounts reported on each state tax return.





State taxes paid by income group, tax year 2007

:










Big cities pay bigger share

Because most of the wealthy live in urban areas, those areas have a much higher average state income tax burden. Residents of Marin County, for example, pay about $11, on average, in income taxes for every $1 paid by residents of Imperial County.












Average tax bill jumps sharply

The average state income tax paid by Californians has risen pretty steadily over the decades. Because our system focuses on the wealthy, though, there have been lots of fluctuations. The dot-com boom, for instance, saw a huge influx of cash as the rich got richer. The subsequent dot-com bust had the opposite impact.





Average state tax paid per return, 1968-2007 (with inflation adjustment, too)

:








Incomes rising, other taxes falling

Still, it's not fair to just say Californians pay more income taxes these days. For one thing, the state's residents have also gotten richer. For another, the state relies less these days on other taxes like the property tax. Also, it's generally accepted that the poor and middle class pay a larger portion of their income on other taxes like the sales tax. Income taxes, then, are, in a way, just a larger piece of a similar-size puzzle.





Income and total taxes paid as a proportion of personal income, 1968-2007

:










Sources: California Franchise Tax Board, California Department of Finance





Notes: "Total taxes" in the fourth graphic excludes departmental, interest and miscellaneous revenues. Inflation conversion factors from

here.

Most data from

Franchise Tax Board's latest annual report

, which covers the 2007 tax year. One chart initially was mislabeled as covering the 2008 tax year. Added line for context about the sales tax to the fourth graphic on 4/8 AM. Also sharpened language in a couple of places to make it clear the first three charts deal with the income tax only.

  Comments  

Videos

Meet California's most liberal city

Meet California’s most conservative city

View More Video

Trending Stories

Gavin Newsom says California plans to sue Donald Trump over national emergency declaration

February 15, 2019 10:32 AM

‘Just please stop coming up here.’ Sierra travel can wait, officials say, as more snow moves in

February 16, 2019 03:40 PM

Home sales have dropped sharply in Sacramento. See how that’s affecting prices in your neighborhood

February 16, 2019 03:00 AM

‘Especially De’Aaron’: What Celtics star Kyrie Irving said about Kings’ De’Aaron Fox

February 16, 2019 03:17 PM

One dead in Tahoe City shooting, Placer County Sheriff’s Office says

February 16, 2019 05:58 PM

Read Next

See gifts given to California state leaders, aides
Video media Created with Sketch.

Data Tracker

See gifts given to California state leaders, aides

By Phillip Reese

    ORDER REPRINT →

February 15, 2019 02:00 PM

Corporations and interest groups have given California leaders and their aides tens of thousands of gifts worth more than $7 million since 2000, including more than $400,000 in gifts given during 2018, according to a Bee review of state data.

KEEP READING

Sign Up and Save

#ReadLocal

Get six months of free digital access to The Sacramento Bee

SUBSCRIBE WITH GOOGLE

MORE DATA TRACKER

As shutdown continues, Latin American immigration to California remains near modern low

Data Tracker

As shutdown continues, Latin American immigration to California remains near modern low

January 04, 2019 12:00 AM
Search average teacher, superintendent pay for California school districts

California

Search average teacher, superintendent pay for California school districts

December 27, 2018 12:53 PM
See what California police and firefighters earn in each community

Data Tracker

See what California police and firefighters earn in each community

October 30, 2018 03:00 AM
See what California police and firefighters earn in each community

Data Tracker

See what California police and firefighters earn in each community

October 30, 2018 07:20 AM
New projections show future of work in California. See growth prospects for every job

Data Tracker

New projections show future of work in California. See growth prospects for every job

August 12, 2018 08:00 AM
Homes in these 4 local communities exceed peak 2006 values. How does your area stack up?

Data Tracker

Homes in these 4 local communities exceed peak 2006 values. How does your area stack up?

August 09, 2018 03:55 AM
Take Us With You

Real-time updates and all local stories you want right in the palm of your hand.

Icon for mobile apps

The Sacramento Bee App

View Newsletters

Subscriptions
  • Start a Subscription
  • Customer Service
  • eEdition
  • Vacation Hold
  • Pay Your Bill
  • Rewards
Learn More
  • About Us
  • Contact Us
  • Newsletters
  • News in Education
  • Photo Store
Advertising
  • Place a Classified Ad
  • Place a Legal Notice
  • Place a Digital Ad
  • Place a Newspaper Ad
Copyright
Commenting Policy
Corrections Policy
Privacy Policy
Terms of Service


Back to Story