Taxes in San Diego
California levies a real, current progressive income tax topping out at 13.3% on income over $1M (including the 1% Mental Health Services Act surcharge) -- the HIGHEST top marginal state income tax rate in the US -- applying identically in San Diego as anywhere in California, alongside a 7.75% combined sales tax in the city and Proposition 13's distinctive property-tax mechanic.
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Learn moreCalifornia's Real, Current, and Highest-in-the-US Top Income Tax Rate
California's progressive income tax runs 10 brackets from 1% up to a real, current 13.3% top marginal rate above $1,000,000 in taxable income (single filer) -- including a 1% Mental Health Services Act surcharge -- the highest top marginal state income tax rate in the country, applying to San Diego residents exactly as it does anywhere else in California.
A Real, Current 7.75% Combined Sales Tax in the City of San Diego
San Diego's city sales tax runs 7.75% (6% state + 0.25% county + 1.5% special district) -- among the higher combined rates nationally, though not the highest within California itself; some California localities run meaningfully higher via additional local district taxes.
Property Tax Runs Near the National Median, Thanks to Proposition 13
As detailed in full on the property-taxes topic page, San Diego County's effective property tax rate runs approximately 1.1%-1.25% -- modestly above the roughly 1.02% national median -- but Proposition 13's assessed-value cap means the ACTUAL bill a specific owner pays depends heavily on how long they've owned the property, not just the nominal rate.
A Real, Genuine Retirement-Income Nuance
As detailed on the retiring topic page, California fully exempts Social Security benefits from state income tax at every income level, but fully taxes pension and retirement-account withdrawals at ordinary rates with NO separate retirement-income deduction -- a real, honest, and easily-missed nuance for anyone comparing California against no-income-tax states.
Key takeaways
- California's real, current top marginal income tax rate is 13.3% (over $1M, including the 1% MHSA surcharge) -- the highest in the US, applying identically in San Diego as anywhere in California.
- San Diego's combined city sales tax runs 7.75% (6% state + 0.25% county + 1.5% special district).
- San Diego County's effective property tax rate runs approximately 1.1%-1.25%, near the national median, though Proposition 13 makes the ACTUAL bill highly dependent on how long a specific owner has held the property.
- California fully exempts Social Security from state tax but fully taxes pensions and retirement-account withdrawals with no separate deduction -- a real, honest nuance for retirees.
- California's real wildfire-insurance-market stress and genuine earthquake exposure carry real, current cost implications covered in full on the homeowners-insurance and flood-hurricane-risk topic pages.
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