California Governor Gavin Newsom sparked a heated debate this week after claiming that Americans pay less in taxes in California than in Texas or Florida, a statement that critics immediately challenged as misleading.
Speaking at the SXSW conference in Austin, Texas, Newsom told attendees that Texas and Florida were “the real high-tax states” and suggested that middle- and lower-income Americans actually face a heavier tax burden there than in California.
“Texas taxes poor folks more than we tax our richest,” Newsom said. “Florida is the other regressive tax state. Your middle class pays more taxes in Texas than our middle class in California.”
The governor cited a study from the Institute on Taxation and Economic Policy (ITEP) to support his remarks.
According to the study, Florida ranks highest in “tax inequality,” which measures the proportion of taxes paid by lower-income residents relative to higher earners.
The study indicated that the bottom 20% of earners in Florida and Texas pay slightly higher overall tax rates, including income, sales, and property taxes, than their counterparts in California.
Also Read: Trump Embarrasses California Gov Gavin Newsom in Front of Reporters
While the data on lower-income taxpayers aligns with Newsom’s claim, critics noted that the overall tax burden in California remains among the highest in the nation.
Florida Governor Ron DeSantis immediately dismissed Newsom’s statements as false, tweeting that “there are lies, damned lies, and statistics. Then there is whatever you’d call the claim that California has lower taxes than Florida.”
The Kenya Times analyses confirm the broader picture. The Tax Foundation, a Washington, D.C.-based research group, ranked California #48 in overall tax competitiveness in 2026, accounting for corporate, income, and sales taxes.
Florida and Texas, by contrast, were ranked #40 and #45, reflecting their lower overall tax burdens.
A WalletHub analysis also placed California #4 in the country for an overall tax burden, while Texas and Florida were closer to the bottom of the list.
California’s progressive tax system heavily taxes high earners, but keeps rates lower for those at the bottom. Meanwhile, Texas and Florida rely more on regressive taxes, such as sales and property taxes, which weigh more heavily on low-and middle-income households.
Also Read: Americans to Lose $19 Million as Top Democrat Announces Plan for Major Rebrand
For example, California’s Prop. 13 caps property taxes for some homeowners, but other residents face steep local parcel taxes and bond obligations, particularly in urban areas.
“Even people who generally like California governance acknowledge that California is a very high-tax state,” said David Kline of CalTax, a Sacramento tax policy advocacy group. “Local parcel taxes, bonds, and high sales taxes can quickly add up, making the total cost for many residents significant.”
Newsom’s statements, while partially true, omit important context about California’s overall high cost of living and broad tax structure, leaving the impression that California is generally cheaper than Texas or Florida in terms of taxes, a conclusion that does not hold for the majority of residents.
