News / Article

As Trump Tax Cuts Emerge, High 13.3% California Tax Spells Exodus

Source: forbes.com - Nov 22, 2016

The promise of Trump tax cuts excites many, and is already triggering some ‘pay me in 2017′ requests. Yet voters just passed higher California taxes, at least until 2030. California’s Proposition 55 extended the “temporary” 13.3% tax rate on California’s high-income earners, the highest marginal tax rate in the nation. Well, it’s only temporary, through 2030. These personal income tax increases on incomes over $250,000 started in 2012. It hits 1.5% of Californians, those with a single income filing of at least $263,000, or a joint income filing of at least $526,000.

Many of these people must be thinking about cuts in federal taxes they might get in 2017. Yet the disproportionately high California tax rates are an increasingly large share of their tax burden. That is causing some to weigh the benefits and burdens of the Golden State. Tax-free Nevada is just across the border. Texas, Washington, and Florida also have beckon.

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Category: Other States