Federal income tax burdens rise across U.S., including California

A study by J. David Tax Law indicates that federal income tax burdens have risen significantly across the United States. Between 2021 and 2025, the average federal income tax paid per filer increased from $12,279 to $22,081.

California ranks fifth nationally in this increase, with an average federal tax burden of $26,588 per filer. Other states seeing dramatic increases include Massachusetts, Washington, Minnesota, and Nebraska. Experts suggest California’s position may be influenced by its volatile economy, poverty levels, and the impact of tax credits such as those for electric vehicles.

In addition to federal trends, concerns regarding state-level taxation have been raised. Media personality Stephen A. Smith noted that California’s high tax rates, combined with local taxes in Los Angeles and Los Angeles County, have significant financial implications for residents and frequent visitors. Smith highlighted that California's state tax rates have approached 13.6%, prompting discussions regarding the financial benefits of spending less time within the state.