California is the Worst Tax State in Five of Six Major Categories

Two weeks ago, I referenced taxes as a contributing factor in landlords selling their rentals on the West Coast.

Today, I thought I would scratch a little deeper into this topic, to show not only why people are selling their properties, but moving their families and entire businesses out of the Golden State, with net migration in California now negative for the first time in the history of the census.

California now ranks as the worst taxing state in five of six categories. The state has 1) the highest income tax rate, 2) the highest capital-gains tax rate, 3) the highest statewide sales tax rate, 4) the highest gas tax and 5) by far the highest annual business franchise tax.

The only significant tax of which California is not among the worst states is property tax, thanks, of course, to Proposition 13, co-authored by my grandfather, Paul Gann.

If you, or your client, own rental property on the West Coast, it may be time to consider your options.

For more information, please give 1031 Capital Solutions a call today. Thank you.

This information is for educational purposes only and does not constitute direct investment advice or a direct offer to buy or sell an investment, and is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation. Because investor situations and objectives vary, this information is not intended to indicate suitability for any particular investor. The views of this material are those solely of the author and do not necessarily represent the views of their affiliates.

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