Taxes in Sacramento
California levies the highest top marginal state income tax rate in the US -- a real, current 13.3% (on income over $1M, including the Mental Health Services Act's 1% surcharge) -- alongside the nation's highest statewide base sales tax rate (7.25%) and the City of Sacramento's own 8.75% combined local rate, though this coexists with Proposition 13's genuinely favorable property-tax predictability for long-time owners.
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Learn moreCalifornia's Real, High Income Tax -- the Highest Top Rate in the US
California's graduated state income tax runs nine brackets from 1% to 12.3%, with an additional 1% Mental Health Services Act surcharge on taxable income above $1,000,000 -- producing an effective 13.3% top marginal rate, the highest in the US. This is a real, meaningful cost movers from low- or no-income-tax states should budget for directly.
California's Real, High Base Sales Tax, Plus Local Add-Ons
California's statewide base sales tax rate is 7.25%, the highest STATE-LEVEL rate in the US. The City of Sacramento's own combined rate (state + county + city + special district) runs 8.75% -- notably lower than Oakland's own 10.75% combined rate (see the companion Oakland, CA record), a real, disclosed difference between the two California A+ markets built in this pass.
Property Tax Runs Genuinely Favorable for Long-Time Owners, Shaped by Proposition 13
As detailed in full on the property-taxes topic page, Sacramento County's combined effective property tax rate runs a real, disclosed 1.05%-1.3% (commonly cited around 1.13%), shaped by California's real, distinctive Proposition 13 mechanic capping annual assessed-value growth at roughly 2% for as long as an owner holds the property.
No Local Income Tax in Sacramento
Sacramento residents do not pay any additional local city or county income tax on top of California's statewide rate -- California does not use local income taxes the way some other states' major cities do, so the state's own graduated rate (topping out at 13.3%) is the full income-tax picture for Sacramento residents.
Key takeaways
- California's real, current 13.3% top marginal income tax rate (over $1M, including the 1% Mental Health Services Act surcharge) is the highest in the US.
- California's 7.25% statewide base sales tax rate is the highest state-level rate in the US; Sacramento's own combined rate runs 8.75%, lower than Oakland's 10.75%.
- Sacramento County's property tax runs a real, disclosed 1.05%-1.3% (commonly cited ~1.13%), shaped favorably for long-time owners by Proposition 13's assessed-value cap.
- Sacramento residents pay no additional local city or county income tax beyond California's statewide graduated rate.
- Property tax and homeowners insurance specifics are covered in full on their own dedicated topic pages rather than repeated here.
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