Tax Foundation: The state's combined rates are among the nation's highest.
No small business owner likes taxes, and California has some of the nation’s highest when it comes to its average combined state and local tax rates, according to a new report.
The Tax Foundation found that California has the nation’s ninth highest average combined state and local sales tax rates at 8.56 percent. That ranks behind states such as Tennessee (9.47 percent) and Washington (9.17 percent.)
California also has the nation’s highest state-level sales tax rate (7.25 percent).
“Retail sales taxes are one of the more transparent ways to collect tax revenue,” according to the report. “Sales taxes are easier to understand; consumers can see their tax burden printed directly on their receipts.”
But according to the Tax Foundation, high tax rates can push consumers toward neighboring tax environments. “Sales tax rate differentials can induce consumers to shop across borders or buy products online,” writes Janelle Cammenga, the report’s author.
For more information, visit https://taxfoundation.org/sales-tax-rates-2019