How Californians will be affected by new tax bill

Sully Sullivan joined Good Morning San Diego to discuss how Californians will be affected by the new tax bill.

California has the highest state income tax rate in the nation but among the lowest property tax rates.

The new tax bill dramatically scales back a deduction for state and local taxes, limiting the deduction to just property taxes and capping it at $10,000. About a third of California taxpayers took the deduction in 2015.

A third of California taxpayers take an average state and local tax deduction of $22,000. But the GOP bill will cap the deduction going forward to $10,000.

For many Californians who deduct their state and local taxes on their federal return, this would amount to a tax hike – IF YOU ITEMIZE!

The doubled standard deduction and new tax brackets will offset the loss – and the tax bill ups the standard deduction to $24,000 for couples, and $12,000 for individuals.

Categories: Good Morning San Diego