California ranks 11th for state with highest 'tax burden': new report

ByStephanie Sierra and Simone ChavoorKGO logo
Tuesday, April 14, 2026 12:55AM
California ranks at 11th for state with highest 'tax burden'

SAN FRANCISCO (KGO) -- With tax day around the corner, a new study has some surprising findings about how much we Californians pay in state and local taxes.

According to a new report by WalletHub, California is not one of the top 10 highest "tax burdened states" in the country.

We're just behind that.

Yes, we know what you're thinking... How is California not ranked higher!? We asked one of our tax chat panel experts, Larry Pon who explained that there are other factors at play. For example, Californians also have a higher average income than other states, leading to a lower tax burden on paper.

Let's break down the data....

WalletHub analyzed Tax Policy Center data to see who's paying the highest share of their personal income toward state and local taxes. They found that California ranked eleventh. While some tax rates vary by county, the entire state had an average burden rate of 9.24%.

As for those with the highest tax burden? Hawaii tops the list, with Alaska coming in at the lowest.

And for property taxes... This study found Vermont with the highest burden; Alabama the lowest.

The Golden State comes in towards the middle... ranking 20th.

Again, CPA Larry Pon says this survey takes a general view. Every person's tax situation is unique, so your personal experience may compare differently in other states.

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