Issue Toolbox: California’s Tax Burden Compared to Florida and Texas

My apologies as you dive into this column. What could be drier and droller a subject than discussing tax rates and tax burdens? However, it is essential to be aware of this information as you navigate the world of politics and policy.

As we compare California, Texas, and Florida, we’ll provide actual tax rates and the tax burden as a percentage of personal income, illustrating how much of your earnings are allocated to state and local taxes. California’s tax load is among the nation’s heaviest, far surpassing that of the two largest red states.

Data from WalletHub and the Tax Foundation show:

• California’s total state-local tax burden is about 13.5% of personal income — among the highest in the nation.

• Texas: ~8.6%

• Florida: ~9.1%

This gap exposes a system that strains residents while feeding an oversized government.

Income Tax: California’s Steep Sting

California imposes the highest personal income tax rates in the nation, ranging from 1% to 13.3%. This progressive system hits even middle-class earners hard, contributing significantly to the state’s overall burden.

By contrast, Texas and Florida levy no personal state income tax, leaving residents with more take-home pay. California’s tax-driven system helps fuel a $297 billion budget, compared to Texas’ roughly $160 billion annual budget and Florida’s $116 billion. With 39 million residents, California’s revenue obsession contrasts with Texas (31 million) and Florida (23 million), where leaner systems prioritize affordability over bureaucracy.

Sales Tax: Everyday Costs Soar

California’s combined state and local sales tax averages around 9%, among the highest in the country. While California families face this added cost on most purchases, sales taxes extract about 2–3% of personal income, not 6% as sometimes assumed.

Texas averages about 8%, and Florida around 7% — both a bit easier on household budgets. Every grocery trip or car repair in California comes with a steeper toll, hitting families already struggling with high living costs.

Property Tax: Homeownership’s Hidden Bite

Even with Proposition 13 capping property tax rates at 1% of assessed value, California ranks 18th in per capita property tax collections, thanks largely to sky-high home prices. The median home value in California is about $750,000, compared to $315,000 in Texas and $400,000 in Florida.

So while tax rates stay capped, high home values mean Californians still face large property tax bills, making homeownership a costly dream. On top of this, California’s capital gains tax hits homeowners hard when they sell, compounding the financial burden.

Bur property taxes are not the only homeowner costs in California. So I was reminded by Jon Coupal, the President of the Howard Jarvis Taxpayers Association, who told me, “For all the complaints from progressives about ‘junk fees’ California homeowners are all too familiar with ‘junk fees’ every year when they receive their property tax bills. On top of the regular property tax, limited to 1% thanks to Proposition 13, homeowners see a list of ‘below the line’ items that include flood control assessments, lighting and landscaping assessments, Mello-Roos taxes (in many neighborhoods) and a litany of other miscellaneous fees, charges, taxes, and assessments.”

Gas Tax: Pain at Every Pump

California drivers pay about 68 cents per gallon in state taxes and fees — the highest in the nation. Texas drivers pay about 20 cents, and Florida drivers about 37 cents.

In a state where driving is essential for work and daily life, this tax adds hundreds of dollars annually to the cost of living. And despite the high taxes, Californians endure clogged roads and faltering infrastructure, leading many to ask why they pay so much for so little.

The Bigger Picture: Budget Excess

California’s $297 billion budget dwarfs Florida’s $116 billion and rivals Texas’ $160 billion annual budget. Each state carries billions in debt, but California’s total obligations — including bonded debt and unfunded liabilities — rank among the nation’s highest, second only to the federal government.

California’s 48th-place ranking in tax competitiveness (Tax Foundation 2024) underscores a broken system. Texas and Florida show that big populations don’t require bloated budgets, offering models of efficiency that California could follow.

A Demand for Change

California’s tax burden, second only to a few other states, places a significant strain on families while sustaining a government that 84% of residents say serves the interests of the elite, according to the Public Policy Institute of California.

Texas and Florida, with lower taxes and manageable budgets, show a path to affordability. Leaders must slash waste, cut taxes, and restore fairness to a system that’s bleeding Californians dry. The numbers demand action — residents can’t wait for reform.