Taxes in Merced, California
Complete tax guide for Merced, CA. State income tax up to 9.3%, 0.77% property tax, 8.48% sales tax. Calculate your total tax burden.
State Income Tax
9.3%
California
Property Tax
0.77%
Effective rate
Sales Tax
8.48%
Combined rate
Tax Burden
High
Merced, CA Tax Overview
Population
83,982
Median Income
$86,700
Cost of Living
159.5 (100 = avg)
State Income Tax
9.3%
Median Home Price
$813,000
Merced Tax Calculator
Pre-filled with Merced median: $86,700
Total Tax Burden in Merced
$25,384
Take-Home: $61,316 · Effective Rate: 29.28%
Federal Tax
$10,688
12.33% eff.
CA State
$8,063
9.30% eff.
FICA
$6,633
7.65% eff.
Take-Home
$61,316
70.72% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $86,700.00 | $7,225.00 |
| Federal Income Tax | -$10,688.00 | -$890.67 |
| California State Tax | -$8,063.10 | -$671.93 |
| Social Security (6.2%) | -$5,375.40 | -$447.95 |
| Medicare (1.45%) | -$1,257.15 | -$104.76 |
| Take-Home Pay | $61,316.35 | $5,109.70 |
Property Tax in Merced
Median Home
$813,000
Annual Tax
$6,260
Monthly Tax
$522
Effective Rate
0.77%
Sales Tax in Merced
Combined Rate
8.48%
State Portion
~6.0%
Local Portion
~2.5%
The combined sales tax rate in Merced is 8.48%, which is above the national average of 7.12%. On a $100 purchase, you would pay $8.48 in sales tax.
Tax Burden Comparison
| Tax Type | Merced | California Avg | National Avg |
|---|---|---|---|
| Income Tax | 9.3% | 9.3% | 4.6% |
| Property Tax | 0.77% | ~0.77% | 1.1% |
| Sales Tax | 8.48% | ~8.48% | 7.12% |
| Overall Burden | High | — | Moderate |
Tax Saving Tips for Merced Residents
- California's income tax rate of 9.3% is above average. Maximize pre-tax retirement contributions (401k up to $23,500, IRA up to $7,000) to reduce both federal and state taxable income.
- Property tax in Merced (0.77%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- The combined sales tax rate of 8.48% is relatively high. Consider making large purchases in lower-tax jurisdictions or online retailers that do not charge local tax rates.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
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See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Merced, CA?
Merced, California has a state income tax rate up to 9.3%. The property tax rate is 0.77% and the combined sales tax rate is 8.48%.
How much is property tax in Merced?
The effective property tax rate in Merced is 0.77%. On the median home price of $813,000, this equals approximately $6,260 per year or $522 per month. This is below the national average of 1.1%.
What is the sales tax rate in Merced?
The combined sales tax rate in Merced is 8.48%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Merced's tax burden compare to other cities?
Merced has a high overall tax burden. The effective total tax rate for a median-income household is approximately 34.3%. The combination of 9.3% state income tax, 0.77% property tax, and 8.48% sales tax determines the total burden. Cost of living index is 159.5 (100 = national average).
Are there any local taxes in Merced?
Merced does not impose a separate local or city income tax. Residents pay the state income tax of 9.3%, federal income tax, and FICA (Social Security and Medicare).