Two weeks ago I did a piece looking at the cost of living in different states. One major dimension of the cost of living is state sales and incomes taxes. With the recent economic downturn, it looks like I’ll have to update my numbers.
California currently has the highest sales tax of any state (7.25%). Due to the current budget crisis, it will increase the sales tax by 1 percentage point to 8.25%. This means that in my current home of San Diego, the sales tax will rise to 8.75%. In my future home of San Francisco the sales tax will be 9.5%.
Ouch!