California no longer No. 1 in personal income tax rate
California has lost the distinction of having the highest personal income tax rate among the 50 states.
The Golden State’s top rate of 10.55% has been surpassed by new 11% rates in Hawaii and Oregon and by a new 10.76% top rate in New Jersey, as those states have scrambled to patch budget holes.
New Jersey’s top rate applies to taxable income above $1 million, the same threshold California applies for its 10.55% rate.
Hawaii’s new 11% rate kicks in at $200,000 in taxable income for single filers and $400,000 for joint filers. Oregon’s 11% rate applies to income above $250,000 for singles and $500,000 for couples.
The Tax Foundation has a good summary of which states have raised taxes to close budget gaps (or still are wrangling over proposed increases) and which have held the line.
Just a side note: Well-heeled Californians who'd like to escape the state's tax regime probably weren't going to head for Hawaii or Oregon, anyway. They still have the option of paying no income tax at all by relocating to Nevada or Texas.
-- Tom Petruno
communist? Waxman?
Get a brain in your head before you comment.
Posted by: mike hart | July 01, 2009 at 02:03 PM
Well, lets get busy. We don't want Kal to lag, do we ? Pump up that rate again !
We are numero uno .....
Pterry
Posted by: pterasaur | July 01, 2009 at 02:34 PM
Yeah, but CA's top rate kicks in @ just $43k
Posted by: taxpayer | July 01, 2009 at 03:10 PM
@Taxpayer: As the item notes, California's top rate of 10.55% kicks in at income of $1 million. The next-lowest tax rate, 9.55%, kicks in at income of about $47,000 for single filers and about $94,000 for marrieds.
Tom Petruno
Posted by: Tom Petruno | July 01, 2009 at 03:21 PM
"The next-lowest tax rate, 9.55%, kicks in at income of about $47,000 for single filers and about $94,000 for marrieds."
Don't you mean the next-highest tax rate? Does this mean the person making $50,000 has the same tax rate as someone making $800,000? At least California is screwing everyone over equally!
Posted by: MJ | July 01, 2009 at 04:47 PM
I think "Taxpayer's" point is that our high rates jump into place earlier than those in Hawaii and Oregon. On a rate that hits most taxpayers in the state, California's is the highest.
Posted by: Greg | July 01, 2009 at 04:48 PM
@ MJ and Greg: No argument on either of your points, although note that New York's 6.85% rate kicks in at $20,000.
There's a (mostly) up-to-date listing states and their tax brackets here:
http://www.taxfoundation.org/taxdata/show/228.html
Posted by: Tom Petruno | July 01, 2009 at 04:55 PM