California is known for sunshine, opportunity, and innovation—but it’s also known for having some of the highest taxes in the nation. For investors, that means paying attention not only to how much you earn, but also to how much you keep after taxes.

As Senior Financial Advisor, I work with California clients every day who want to grow wealth without being surprised at tax time.

Why Taxes Matter More in California

California’s top marginal income tax rate is 13.3%, the highest in the U.S. Combine that with federal taxes, and high earners may be facing a combined rate of 40%–50% on certain income.

This is why it’s so important to look beyond returns. Two investors can earn the same 7% annual gain, but if one invests tax-smart and the other doesn’t, the after-tax results may be very different.

Capital Gains Strategies

Capital gains taxes are another area where planning makes a difference.

• Long-term vs. short-term: Holding investments for more than one year usually results in lower federal tax rates. California, however, taxes both short- and long-term gains as ordinary income.

Integrating Tax Planning with Your Investments

At Manna Wealth Management, I help clients balance their investment strategies with California’s unique tax landscape. You can learn more about me in my advisor profile.

Final Thoughts

Living in California comes with opportunities and challenges. Taxes will always be part of the picture, but with thoughtful planning, you can reduce their impact.

The right question isn’t just “How much can I earn?” but “How much can I keep?”