Tax Foundation
taxfoundation.org › home › data › state taxes › state and local sales tax rates, midyear 2025
2025 Sales Tax Rates | Sales Taxes by State
August 6, 2025 - California has the highest state-level sales tax rate, at 7.25 percent.[1] Four states tie for the second-highest statewide rate, at 7 percent: Indiana, Mississippi, Rhode Island, and Tennessee.
Cato Institute
cato.org › blog › are-taxes-really-lower-california-texas
Are Taxes Really Lower in California than in Texas?
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overview of sales taxes in the United States of America
Factsheet
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Reddit
reddit.com › r/texas › on the one hand, texans pay a lot more in state tax than californians (unless you are the top 1%). but on the other hand, we get a lot less in return.
r/texas on Reddit: On the one hand, Texans pay a lot more in state tax than Californians (unless you are the top 1%). But on the other hand, we get a lot less in return.
November 27, 2023 -
https://www.chron.com/news/houston-texas/article/texans-pay-more-taxes-than-californians-17400644.php
5minuteeconomist
5minuteeconomist.com › the-texas-model-vs-california-which-works-better.html
The Texas Model vs. California – Which works Better? | 5-Minute Economist
California does indeed have far higher corporate and individual income taxes than its cowboy counterpart, but that doesn’t mean Texas taxes less. It actually has higher sales and property taxes as well as selective taxes (e.g. cigarettes, gasoline, liquor) than its coastal cousin.
Insogna CPA
insognacpa.com › blog › california-vs-texas-which-state-offers-the-best-tax-benefits-for-business-owners
California vs. Texas: Which State Offers the Best Tax Benefits for Business Owners? - Insogna CPA
January 22, 2025 - Takeaway: California offers ... local CPA in Austin, Texas, can help you plan effectively. 📌 California: The base sales tax rate is 7.25%, and local add-ons can push the total over 10% in some regions....
Vorys
vorys.com › publication-Tax-Sharing-California-and-Texas-Take-Different-Intrastate-Sales-Tax-Approaches-Post-i-Wayfair-i
Tax Sharing: California and Texas Take Different Intrastate Sales Tax Approaches Post Wayfair
The Comptroller determined that, in light of Wayfair and Texas House Bills 1525 and 2153, both passed in 2019, that remote sellers that are required to collect Texas sales/use tax should collect the tax based on the destination, not the origin. The Comptroller also found that companies were using the complex sales tax rules to take the position that their internet sales are originated at the customer service center processing the order.
Avalara
avalara.com › taxrates › en › state-rates.html
2025 US Sales Tax by State - Avalara
Easily lookup 2025 US sales tax rates by state using our interactive map. Sales tax rates updated monthly.
Hallacctco
hallacctco.com › home › blog › texas vs. california taxes: differences after your big move
Texas Taxes vs California: Key Differences… | Hall Accounting Company
October 30, 2024 - One of the biggest reasons why people move from California to Texas is the difference in income tax policies. California, as a state, has the highest marginal income and sales tax rate in the country, more than any other state and local taxes.
Reddit
reddit.com › r/askeconomics › it is often said that states with no income tax (i.e. texas) "get you" with high sales and property tax. but how can that be if the sum of all of these taxes is still less than the % you'd pay in income tax?
r/AskEconomics on Reddit: It is often said that states with no income tax (i.e. Texas) "get you" with high sales and property tax. But how can that be if the sum of all of these taxes is still less than the % you'd pay in income tax?
December 19, 2023 -
Texas is often criticized for it's "obfuscated" tax burden. But Texas's sales tax of 6.25% is lower than NYs 8.875%, and Californias 7.25%. Average property tax in Texas is 1.60% (double than Californias but still low).
Another thing I don't get is this: if I live in California and earn 50k, I pay 10k in taxes (20%). So if I live in a no-income-tax state, I shouldn't care about additional minor taxtations as long as they don't amount to 20% or more.
I am sure I may be wrong about 80% of this, but I struggle to figure out how.
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Partly it’s because the tax on earnings versus a tax on spending would be different to achieve the same revenue from simple math. Let’s say apples cost $1 and you earn $100. You only buy apples. Suppose the state imposes a 20% income tax. (Assume prices don’t change to shift tax burden for simplicity) You can now only buy 80 apples and the government collects $20 in tax revenue Alternatively suppose the government uses a sales tax of 20%. Now apples cost $1.20 and you can only afford 83.3 apples and the government is only collecting $16.67 in revenue. So to collect the same revenues as the income tax, the sales tax would need too be more than 20%. It would need to be 25%.
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The argument is that while Texas income taxes are low, it is likely to wash for the average person because property and sales taxes are higher. The other argument made is that ppl usually look at California's top income tax rate and compare that to the 0% on offer in Texas, ignoring that the top California rate (12.3%) only affects income in excess of 700k for an individual and like $1.3 million filling married. Most ppl will be have an effective tax rate more like 5%. https://www.nerdwallet.com/article/taxes/california-state-tax This article does a decent job of going through some details. It shows the average state and local tax burden as a % of median HHI and Texas is actually higher than Cali (some perhaps arguable assumptions). But like all blended statistics it hides a lot of variability, which is actually outlined nicely in the article. https://fortune.com/2023/03/23/states-with-lowest-highest-tax-burden/
Yahoo! Finance
finance.yahoo.com › news › think-texas-cheaper-tax-burden-161359267.html
Think Texas has a cheaper tax burden than California? Think again.
March 23, 2023 - California, New York, and DC have programs like the Earned Income Tax Credit "which, literally send money to low and middle income tax people," says Auxier. "States like Texas don't have that." Still, the report can provide one snapshot of different tax burdens. "It does make sense to think of this holistically, to think about your income, sales, and excise tax together," says Walczak.
