Sacramento California Tax Guide 2026: State Tax, 8.75% Sales Tax, Measure U

Sacramento, California's state capital, follows the same rule as every other California city: no city can levy a personal income tax. All income tax in California is collected at the state level by the Franchise Tax Board, using a steeply progressive schedule that tops out at 13.3% (including the 1% Behavioral Health Services Tax on income over $1 million). That means Sacramento residents pay California's state income tax and federal income tax — with no third city-level layer on top, unlike residents of Detroit or New York City.

Where Sacramento does stand out locally is sales tax. A stack of voter-approved local add-ons — most notably the city's own Measure U transactions tax — pushes Sacramento's combined sales tax rate to 8.75%, well above California's 7.25% statewide base. Property taxes are governed by Proposition 13, capping the base rate at 1% of assessed value with only modest annual increases allowed, which keeps effective rates for long-term owners meaningfully below what a new buyer pays. This guide breaks down exactly what Sacramento residents pay across income, sales, and property tax, with a worked example at $75,000.

No City Income Tax — But California's State Rate Still Applies

Like every California city, Sacramento cannot levy a personal income tax on residents — California law concentrates all personal income tax collection at the state level through the Franchise Tax Board (FTB). This is a genuine structural advantage compared to cities like Detroit, New York City, or Philadelphia, where a separate city income tax stacks on top of the state rate.

That said, California's own state income tax is steep. Rates run progressively from 1% to 12.3%, with an additional 1% Behavioral Health Services Tax (formerly the Mental Health Services Tax) on income over $1 million bringing the effective top rate to 13.3% — the highest state income tax rate in the country. For a single filer earning $75,000, California state income tax comes to approximately $2,665. Sacramento residents pay this same amount regardless of which California city they live in, since the rate is set entirely at the state level.

Measure U and Sacramento's 8.75% Sales Tax

Sacramento's combined sales tax rate is 8.75%, built from three layers:

Measure U is a permanent city transactions and use tax first approved by Sacramento voters at a half-cent rate in 2012, then doubled to a full 1% when voters renewed and expanded it in November 2018, effective April 1, 2019. Revenue funds general city services, including police, fire, parks, and youth programs, with a portion earmarked for community investment initiatives. On $30,000 of annual taxable spending, the 8.75% rate generates $2,625 in sales tax — higher than Jacksonville (7.5%) or Detroit (6%), and in line with or above many other major California cities.

Sacramento Property Tax and Proposition 13

California's Proposition 13 (1978) caps the base property tax rate at 1% of assessed value and limits annual assessment increases to 2% per year (or the rate of inflation, whichever is lower) for as long as a property is held. Voter-approved local bonds and special assessments add a modest amount on top of the 1% base — an amount that varies by tax-rate area (roughly 0.1% to 0.2% is a common estimate) — bringing the effective rate for a newly purchased home to roughly 1.1% of its purchase price.

Because assessed values only reset to market value at sale (or new construction), longtime Sacramento homeowners often pay tax on assessments well below current market value. This blends the county's average effective rate down to roughly 0.76%–0.83% of current market value across all homeowners, new and old — for example, Ownwell (a property-tax data site) reports a median Sacramento County home value of roughly $498,900 and a typical annual bill near $3,768, about 0.76% effective — a third-party estimate, not an official figure. A homeowner buying a $400,000 Sacramento home today should budget closer to $4,400 per year (1.1%) including local bond assessments, while a neighbor who bought decades ago on the same street may pay a fraction of that.

What Sacramento Residents Actually Pay: State + Federal Combined

Since there is no city income tax, the full income tax picture for a Sacramento resident is simply state plus federal. At $75,000 income for a single filer:

This total is lower than Detroit (~$14,207), Oklahoma City (~$13,088) and Milwaukee (~$12,990), but higher than Jacksonville (~$9,920), at the same income. California's state income tax at this income level is moderate compared with the 13.3% headline top rate, and Sacramento's 8.75% combined sales tax is the highest in this comparison. The gap versus lower-tax states widens at higher incomes as California's brackets rise (the 9.3% bracket starts above $75,197 of taxable income for single filers), while Michigan's rate stays flat at 4.25%. Homeowners in Sacramento also face property tax on top of this figure, partially offset for long-term owners by Proposition 13's assessment cap.

Total Tax Burden: Sacramento vs Other Major Metros at $75,000

Comparing a $75,000 single-filer renter across five major US metros, combining federal, state, city, and estimated sales tax on $30,000 of annual spending:

Detroit carries the highest total tax burden of this group at $75,000 income, since Michigan stacks a city income tax on top of the state rate. Sacramento comes in fourth of the five — slightly below Oklahoma City and Milwaukee and well above Jacksonville — with its 8.75% combined sales tax (the highest in this comparison) offsetting a state income tax that is moderate at this income level. Jacksonville remains the clear outlier at the low end, since Florida charges no state income tax at all.