Quick California Tax Stats
| Tax Type | Rate / Info |
|---|---|
| Income Tax | Progressive 1%–13.3% (top rate over $1M) |
| Sales Tax | 7.25% statewide base; ~8.75%–10.75%+ combined in many cities |
| Jock Tax | California taxes income earned from work performed in the state |
| Cost of Living (Range) | $120,000 – $300,000+ annual (LA / Bay Area lifestyle) |
| Average Home Price | ~$750,000 – $900,000 statewide; $1M+ common in major metros |
California State Income Tax Breakdown
California has the highest top state income tax rate in America.
2025 State Income Tax Rates (Single Filers):
- 1% → $0 – ~$10,412
- 2% → ~$10,413 – $24,684
- 4% → ~$24,685 – $38,959
- 6% → ~$38,960 – $54,081
- 8% → ~$54,082 – $68,350
- 9.3% → ~$68,351 – $349,137
- 10.3% → ~$349,138 – $418,961
- 11.3% → ~$418,962 – $698,271
- 12.3% → $698,272+
- +1% Mental Health Services Tax surcharge on gross income exceeding $1 million or more.
So effectively? Make over $1,000,000 and you’re paying 13.3% at the top.
That’s before federal.
What That Means in Real Numbers
Example: $500,000 Annual Income
You’re deep in the 11.3% bracket, so your effective income tax bill is likely to land roughly around $45,000–$50,000+.
Stack that with federal taxes in the top bracket (37%) and you are easily paying a ~45-50% combined marginal rate on your gross income back to taxes annually.
Half your dollar, gone.
Sales Tax
California’s statewide base sales tax is 7.25%, one of the highest base rates in the country.
Local districts add additional percentages, bringing combined rates to:
- ~9.5% in parts of Los Angeles
- ~8.75%–9.25% in San Diego
- 10%+ in certain Bay Area municipalities
For high-income athletes:
- Luxury consumption carries significant tax cost
- Vehicle purchases, jewelry, furnishings, and watches compound quickly
Example
Buying a $250,000 vehicle in Los Angeles at ~9.5% combined rate would trigger roughly $23,750 in sales tax.
This also means that the depreciation of said vehicle purchase is going to happen quicker than in states where there is lower to no sales tax.
Consumption tax materially impacts lifestyle-heavy spending models in California.
Jock Tax
California aggressively enforces jock tax rules.
- Visiting athletes owe California income tax on income apportioned to games played in-state.
- California-domiciled athletes owe state income tax on worldwide income up to 13.3%.
Because California hosts multiple major franchises (NBA, NFL, MLB, NHL), athletes frequently incur California jock tax exposure even if they live elsewhere.
Example
An NFL player playing an away game against the San Francisco 49ers or Los Angeles Rams owes California tax on the portion of salary allocated to that duty day.
For California residents, that exposure expands to full annual income.
High-income athletes in California experience some of the highest cumulative state tax exposure in professional sports.
Cost of Living and Housing
California has one of the highest cost-of-living profiles in the country.
Lifestyle budgets
- Los Angeles / Orange County: $180k–$300k+ annually for high-end professional lifestyle
- Bay Area: often higher due to housing costs
- Inland regions: materially lower but still above national averages
Housing
- Statewide median home price: ~$750k–$900k
- Los Angeles 3-bed/2-bath: often $900k–$1.2+ million
- Bay Area: $1.2+ million common
- Luxury gated communities: multi-million standard
Compared to Arizona or Nevada, California combines high income tax with high housing cost, creating compounded net income erosion.
Residency Rules
Athletes establishing domicile in California must:
- Obtain California driver’s license
- Register vehicles in-state
- Register to vote
- Establish primary residence
- Demonstrate intent to remain
California aggressively audits residency claims, especially for high-income individuals attempting to exit.
Residents are taxed on worldwide income up to 13.3%.
Example
A baseball player signing with a California franchise and establishing full California residency will owe state income tax on salary, bonuses, sponsorships and endorsement income, plus still owe jock tax to other states for away games.
Residency planning must be documented thoroughly when leaving California due to scrutiny levels.
Why California Is Complex for Athletes
- Highest top marginal state income tax (13.3%)
- No preferential capital gains rate
- High sales tax
- Extremely high housing costs in major metros
- Aggressive residency enforcement
- Large concentration of pro franchises (frequent jock tax exposure)
California offers enormous earning upside in media, tech, and entertainment markets.
But from a pure tax efficiency standpoint, it is one of the most expensive states in the country for high-income professional athletes.
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Next Athlete State Tax Reads
- Arizona State Athlete Taxes
- Nevada State Athlete Taxes
- Florida State Athlete Taxes
- Texas State Athlete Taxes
- Washington State Athlete Taxes
Next Reads
- Lakers’ $10 Billion Sale
- Luka Dončić Lost $345 Million: How the Lakers Trade Cost Him a Supermax
- Puka Nacua’s LA Housing Decision: Renting, California Economics & the Playoff Premium
- How the Dodgers’ Ownership Built a Multi-Billion Dollar Sports Empire
- Who Really Pays for NFL Stadiums? The Hidden Capital Stack Behind Billion-Dollar Deals
Credits
Sources: California Franchise Tax Board, Tax Foundation 2025 State Tax Data, Zillow / Redfin Housing Data, APSM Financial Research
Disclaimer: This article contains general financial information for educational purposes and does not constitute professional advice.
Apostle Sports Media 