State Tax in California

Each state has its own laws governing percentages and numbers of state tax. The state tax in California is one of the highest in the United States which comes as a shock to many new residents. In order to avoid financial hardship or confusion take the time to learn about the different state taxes in California. Knowing how the state taxes in California differ from your previous state of residents will help prepare you for a change in expenses. This information will also help you make responsible plans for your future and the future of your family.

Sales Taxes in California

For many people sales tax in California has the greatest impact on their standard of living. In order to help alleviate the financial burden of the 6.25 per cent sales tax both prescription medications and foods are exempt from the state sales tax. This helps to ensure that individuals can afford to pay for the necessities in life. Other items such as gasoline, diesel, and cigarettes are taxed as well. Instead of paying the 6.25 per cent sales tax on these items individuals must pay 44.4 cents per gallon for gas and 45 cents per gallon for diesel. The tax on Cigarettes in California is one of the highest with individuals having to pay 87 cents per pack.

Property Taxes in California

All property owners in California are expected to a tax on their property which should not exceed 1 per cent of the full cash value of the property. It is possible for property owners to file for homestead exemption which will make the first $7,000 of their property exempt from taxation. There are also programs that let property owners who are disabled or senior citizens request a postponement for their property taxes to allow them more time come up with the money needed to pay their state property taxes.

Assistance for Tax Payers

The state of California has created a wide variety of programs designed to help individuals manage their tax payments. In addition to making food and prescription drugs exempt from state taxes they have also taken steps to help senior citizens with their property taxes. Any homeowner that is 62 or older and earns less than $35,000 per year may ask the government for assistance. If approved for this program homeowners will receive assistance that will help them pay up to 96 per cent of their property taxes.

Even though many feel that the state tax in California is extremely high when compared to other state taxes the state government is making an effort to keep necessities affordable for all local residents.

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