California Budget and Policy Center: Who Pays Taxes In California?

A fair tax system is one that asks individuals and families to contribute to public services based on their ability to pay. However, California’s system of state and local taxes asks disproportionately more from lower-earning families. After taking into account Californians’ ability to deduct state and local taxes for federal income tax purposes (discussed below), California’s overall tax system is moderately regressive, meaning that lower-earning families on average pay a larger share of their annual incomes in state and local taxes compared to higher-income families.

Read the full report here.