Stemming from the Tax Cuts and Jobs Act of 2017, California instituted Opportunity Zones where investment is encouraged. Opportunity Zones are places where poverty and economic distress occur much higher than surrounding areas.
Investors who choose to invest in these areas defer capital gains taxes until December 31, 2026, or a qualifying investment is terminated.
In monetary terms, California has high income and capital gains taxes. However, property tax in California sits at .75%, which ranks 19th nationally. Given the high property costs in California, property tax bills in California can be high compared to states with higher property tax rates and lower property prices.