A California income tax study reveals that the average worker in the Golden State pays nearly $760,000 in combined federal and state income taxes over a 45-year career, ranking sixth highest in the United States.
According to data recently published by Visual Capitalist based on Self Financial’s February 2026 economic analysis, the estimated total tax burden for an average California worker over 45 years is $758,078. This amount is $433,510 higher than South Dakota, which has the lowest tax burden in the nation at $324,568. Simple calculations show that California workers pay an average of about $16,846 annually, or roughly $1,404 monthly, in income taxes over their working lifetime.
Highest and Lowest Lifetime Income Taxes by State
Massachusetts recorded the highest lifetime income tax in the nation at $884,660. Maryland followed closely at $822,386, with Connecticut ($787,441), New Jersey ($779,557), and Minnesota ($759,232) rounding out the top five. Following California, New Hampshire ranked 7th at $723,243, Illinois 8th at $718,059, New York 9th at $699,611, and Hawaii 20th at $538,578. Nationwide, 24 states exceeded $500,000 in projected 45-year income taxes, mostly regions with high average incomes and a large proportion of high earners.
Conversely, South Dakota, Florida, and Nevada are projected to have lifetime income taxes under $330,000. None of these three states levy a personal state income tax.
Understanding the Income Tax Rankings and Living Costs
However, California’s high ranking does not mean its tax rate alone is the sixth highest in the nation. The rankings also reflect each region’s average income level. Because federal income taxes use a progressive structure with higher tax rates for higher earnings, regions with higher average wages naturally see an increase in lifetime federal taxes paid.
Recent Bureau of Labor Statistics data shows California’s average income reached $83,172 in 2025, ranking fifth nationwide. State income tax brackets range between 1% and 13% as of 2025. In fact, while the average worker in Massachusetts was assumed to earn about $3 million over 45 years in this study, Florida workers were assumed to earn about $2 million. Therefore, moving to a state with lower taxes does not mean individuals can fully save the exact tax gap shown in the study, as local living costs and wage standards differ significantly.
Nevertheless, a lifetime income tax burden of roughly $76,000 remains a substantial burden for California workers, acting as a real catalyst driving the so-called ‘exodus from California.’ Ultimately, experts point out that considering high housing and living costs, efficiently saving after-tax income and converting it into retirement funds becomes an even more critical task for long-term financial planning.
