BURBANK, Calif. — As inflation continues to rise, the relative cost of living and tax burden in Burbank, California, is becoming increasingly important for residents and business owners. In 2026, Burbank's combination of property taxes, income taxes, and sales taxes presents a unique landscape, especially when compared to other cities across the United States.
According to the U.S. Bureau of Labor Statistics, the cost of living in Burbank is 32% higher than the national average. This is often attributed to local housing markets that remain competitive despite rising interest rates. In 2025, the median home price in Burbank reached $1.2 million, increasing 12% from the previous year, compared to a 5% rise in cities like Austin, Texas.
Tax Overview: Burbank vs. Other Cities
Burbank's taxation landscape features various taxes that significantly affect its residents. As of 2026, Burbank residents pay municipal taxes that include:
- A sales tax rate of 10.25%
- A property tax rate averaging 1.25%
- State income taxes ranging from 1% to 13.3% depending on income brackets
In contrast, cities such as Houston, Texas, have no state income tax, which can be attractive for high-income earners.
Income Taxes: A Regional Comparison
California's income tax system remains among the highest in the nation. For example, a family in Burbank earning $150,000 annually could pay approximately $8,500 in state income taxes alone, whereas similar families in states like Florida would not incur any state income tax liabilities. This disparity can influence relocation for high-income earners.
Sales and Property Taxes
In Burbank, the 10.25% sales tax affects daily purchases, including groceries and dining. This rate is competitive with the surrounding counties, but significantly higher than many states such as Washington, where sales tax averages around 6.5%. Additionally, the property tax burden in Burbank, while capped under Proposition 13 at 1% of assessed value, can still lead to substantial tax bills due to the high property values.
Housing Costs: Burbank vs. the National Average
Housing costs in Burbank can be prohibitive for many residents. With a median home price of $1.2 million, the month-to-month mortgage costs exceed national averages.
In comparison, cities such as Nashville, Tennessee, report median home prices around $380,000, significantly impacting overall cost of living and housing affordability. According to Zillow, housing affordability metrics indicate that nearly 55% of Burbank homeowners spend more than 30% of their income on housing versus only 29% in lower-cost regions like Indianapolis, Indiana.
Broader Implications for Business Owners
For business owners in Burbank, the combined tax burden and cost of living may affect hiring and retention. Businesses must weigh employment costs against the potential benefits of operating in a region with abundant talent, particularly in media and entertainment sectors.
With continued inflation and rising living costs, business owners may find it increasingly difficult to offer competitive salaries that also ensure financial stability for employees. As the demand for talent remains high, businesses may need to explore location flexibility or telecommuting options to attract workers from more affordable regions.
The Future Tax Landscape
Looking ahead, the potential for tax reform remains uncertain. Many state revenues are pressured by rising costs and demands for public services. Legislative changes could further impact income and property taxes, warranting close attention from residents and business owners alike.
In the coming years, as data continues to evolve, stakeholders must stay informed on fiscal policies that may shift the tax burden landscape. For example, the IRS projections for taxation indicate possible adjustments based on state and federal budgetary needs.