Despite California's Tax Hike to 14.4% in 2024, Some Argue Texans Still Pay More
The California Franchise Tax Board oversees state income tax in California, which currently stands at 14.4%. This is an increase from the previous rate of 13.3%. This new rate is due to the unlimited 1.1% payroll tax for State Disability Insurance (SDI) for employees. This means for those earning over $1 million, their tax rate now stands at 14.4%. For California investors, the 13.3% rate still applies to capital gains, alongside the federal capital gain rate and an additional 3.8% net investment tax.
If you need to reach out to California’s State Disability Insurance agency regarding your increased tax rate, you may wonder how to contact SDI. You also may want to speak to the EDD, for which there are multiple ways to get a hold of EDD. These include contacting EDD customer service, getting through to EDD or hoping to talk to a live person at EDD California. There are also options to reach an agent at EDD or to check on your EDD payment status if you have any outstanding issues.
In comparison to Texas, which famously has no individual state income tax, the tax burden is much higher in California despite some exceptions for lower income earners. When considering the overall tax rates, including sales, property, and unemployment taxes, California still has higher rates. This is despite Texas having the fifth-highest property tax in the country.
For those living in California, it’s important to consider the overall tax picture and possibly consult with your accountant for a comprehensive understanding of your tax obligations.