The Tax Foundation has been around since 1937 and is a nonprofit, nonpartisan, Washington, D.C., think tank.  

It's released a new report showing Californians face the highest personal dividend tax rate in the United States.

Most states tax personal dividend income as ordinary income.  

So if you have high income tax rates you have high taxes on personal dividends.  

The average rate across the United States is 28.6 percent. Here in California it is 33 percent.  

Kyle Pomerlaeu with says that has consequences.

"And when you have taxes as high as California does, in the long term this is going to reduce the incentive to invest, that's going to reduce our capital stock as a nation and it will reduce economic growth and wages," he said. 

Hawaii is second on the list with 31.6 percent followed by New York at 31.5 percent.