California taxes your income at rates between 1% and 13.3%, depending on how much you earn
California uses a progressive tax system, meaning the rate increases as your income goes up. You do not pay one flat rate on all your income. Instead, your income is divided into brackets, and each bracket is taxed at its own rate. The lowest bracket starts at 1% for income under $10,099 (for single filers in 2024). The highest bracket reaches 13.3% on income over $680,063.
The brackets themselves change each year because California adjusts them for inflation. The amounts listed here are for the 2024 tax year. When you file your 2024 return in 2025, you will use 2024 brackets. If you are filing a 2023 return now, the brackets were different then.
Your filing status matters: single filers, married filing jointly, married filing separately, and head of household each have different bracket thresholds. A married couple filing jointly reaches the top bracket at a higher income level than a single person does.
Key Takeaways
- California income tax rates range from 1% to 13.3%, with nine tax brackets that increase as your income rises.
- Tax brackets change every year for inflation, so the income thresholds that applied in 2023 are different from 2024.
- Your filing status (single, married filing jointly, head of household) determines which bracket thresholds explore to you.
- You owe California tax on wages, self-employment income, investment income, and retirement distributions, but not on Social Security benefits.
- Your employer withholds California tax from your paycheck based on the W-4 form you filed with them.
The nine California tax brackets for 2024
Here are the 2024 tax brackets for single filers. If you file under a different status, the income thresholds are higher, but the rates themselves stay the same.
| Tax Rate | Income Range (Single Filers) |
|---|---|
| 1% | $0 to $10,099 |
| 2% | $10,100 to $23,942 |
| 4% | $23,943 to $37,788 |
| 6% | $37,789 to $52,455 |
| 8% | $52,456 to $66,295 |
| 9.3% | $66,296 to $340,031 |
| 10.3% | $340,032 to $408,039 |
| 11.3% | $408,040 to $680,063 |
| 13.3% | $680,064 and above |
If you are married filing jointly, head of household, or married filing separately, the Franchise Tax Board publishes separate bracket tables. You can find the 2024 brackets for all filing statuses on the FTB website. The rates do not change by filing status — only the income thresholds do.
What income is subject to California tax
California taxes most forms of income. This includes W-2 wages from an employer, self-employment income from a business or freelance work, interest and dividends, capital gains, rental income, and distributions from retirement accounts like IRAs and 401(k)s.
Social Security benefits are not taxed by California, even if they are taxed by the federal government. Certain other income sources may be exempt or partially exempt, such as some military pay, workers' compensation, and disability benefits. If you receive income you are unsure about, the FTB website lists what is and is not taxable.
If you work in California but live in another state, you still owe California tax on the income you earned in California. If you live in California but work in another state, you may owe tax to both states, though California offers a credit for taxes paid to other states to prevent double taxation.
How withholding works on your paycheck
Your employer withholds California income tax from your paycheck based on the information you provide on Form CA W-4. This is separate from the federal W-4 you fill out. The withholding is an estimate of what you will owe at the end of the year.
If you did not fill out a CA W-4, your employer withholds using a default method, which is often more than you actually owe. If you fill one out and claim too many allowances, your employer may not withhold enough, and you will owe money when you file your return.
You can change your withholding at any time by submitting a new CA W-4 to your employer's payroll department. This is useful if your life changes — you get married, have a child, take a second job, or your spouse starts working.
Self-employment income and estimated tax payments
If you are self-employed or have income that is not subject to withholding, you may need to make estimated tax payments to California four times a year. These are payments you make directly to the FTB in April, June, September, and January.
You calculate estimated payments based on your expected income for the year. If you underestimate, you will owe the difference plus interest when you file your return. If you overestimate, you will receive a refund. Many self-employed people use their prior year's tax liability as a starting point and adjust up or down based on expected changes in income.
If your income is very low or you expect to have no tax liability, you may not need to make estimated payments. The FTB provides a worksheet to help you determine whether you are required to pay.
Special taxes that add to your California bill
In addition to regular income tax, California imposes a Net Investment Income Tax (NIIT) of 3.8% on certain investment income if your modified adjusted gross income exceeds $250,000 (married filing jointly) or $200,000 (single). This applies to capital gains, dividends, interest, and other investment income.
California also has a Mental Health Services Tax of 1% on income over $1 million. This applies to both wages and investment income. If your income exceeds $1 million, you will see this tax on your return.
These additional taxes are calculated on your tax return, not withheld from your paycheck. If you expect to owe them, you should account for them when making estimated payments or adjusting your withholding.
How to find your exact tax liability
The easiest way to find out exactly how much California tax you owe is to complete your tax return using tax software or work with a tax professional. The software will explore the correct brackets, account for any deductions or credits you are may have access to to, and calculate your total liability.
If you want to estimate your tax before filing, you can use the FTB's online tax calculator, which walks you through your income and situation and gives you an estimate. This is not a filing tool — it is only for estimation — but it gives you a ballpark figure.
Keep in mind that your actual tax liability depends on more than just your income. Deductions, credits, filing status, and whether you have dependents all affect what you owe. Two people earning the same income may owe different amounts.
Frequently Asked Questions
Do I have to pay California income tax if I just moved to the state?
You owe California tax starting the day you become a resident. California considers you a resident if you are in the state for more than six months in a year, or if you establish a permanent home there. You should file a California return for the year you moved, reporting income for the months you were a resident.
What is the difference between California tax and federal tax?
California and the federal government are separate tax systems with different rates, brackets, and rules. You file both a California return and a federal return. Your federal withholding is based on your federal W-4, and your California withholding is based on your CA W-4. You may owe tax to both, to one, or to neither, depending on your income and situation.
Can I deduct federal taxes paid from my California income?
No. California does not allow you to deduct federal income taxes paid. However, you can deduct state and local taxes (SALT) up to $10,000 on your federal return if you itemize deductions. California taxes are part of that $10,000 limit.
What happens if I do not pay my California income tax?
The FTB will send you notices and bills. If you do not respond, they can place a lien on your property, garnish your wages, or intercept your tax refunds. Interest and penalties accrue on unpaid tax. If you cannot pay in full, you can contact the FTB about a payment plan.
Are retirement distributions taxed by California?
Yes. Distributions from traditional IRAs, 401(k)s, and similar accounts are taxed as ordinary income. Roth IRA distributions are not taxed. Some military pensions and federal employee pensions have special rules. Check with the FTB or a tax professional if you are unsure about a specific type of retirement income.