California has a progressive state income tax system, meaning your tax rate increases as your taxable income increases.
Rather than paying one tax rate on all of your income, each portion of your taxable income is taxed at the rate assigned to its bracket.
California State Income Tax Rates
Single or Married Filing Separately
| Tax Rate | Taxable Income |
|---|---|
| 1% | $0 – $11,079 |
| 2% | $11,080 – $26,264 |
| 4% | $26,265 – $41,452 |
| 6% | $41,453 – $57,542 |
| 8% | $57,543 – $72,724 |
| 9.3% | $72,725 – $371,479 |
| 10.3% | $371,480 – $445,771 |
| 11.3% | $445,772 – $742,953 |
| 12.3% | Over $742,953 |
Married Filing Jointly or Qualifying Surviving Spouse
| Tax Rate | Taxable Income |
|---|---|
| 1% | $0 – $22,158 |
| 2% | $22,159 – $52,528 |
| 4% | $52,529 – $82,904 |
| 6% | $82,905 – $115,084 |
| 8% | $115,085 – $145,448 |
| 9.3% | $145,449 – $742,958 |
| 10.3% | $742,959 – $891,542 |
| 11.3% | $891,543 – $1,485,906 |
| 12.3% | Over $1,485,906 |
Head of Household
| Tax Rate | Taxable Income |
|---|---|
| 1% | $0 – $22,173 |
| 2% | $22,174 – $52,530 |
| 4% | $52,531 – $67,717 |
| 6% | $67,718 – $83,807 |
| 8% | $83,808 – $98,989 |
| 9.3% | $98,990 – $505,000* |
| 10.3% | Higher income levels |
| 11.3% | Higher income levels |
| 12.3% | Highest income levels |
*The upper income limits for the highest Head of Household brackets are adjusted annually.
Additional 1% Mental Health Services Tax
California imposes an additional 1% Mental Health Services Tax on taxable income exceeding $1 million.
This means the highest effective marginal state income tax rate is 13.3% for taxpayers whose taxable income exceeds $1 million.
| Save 10% on TurboTax Electronic Tax Filing! | Get this offer and save 10% on TurboTax Electronic Tax Filing! |
What Income Is Taxed?
California generally taxes:
- Wages and salaries
- Self-employment income
- Business income
- Rental income
- Interest income
- Dividend income
- Capital gains
- Pension income
- Traditional IRA withdrawals
- Traditional 401(k) withdrawals
Income Not Taxed
California does not tax:
- Social Security retirement benefits
- Railroad Retirement benefits that qualify for exemption
Unique Factors
California has one of the highest top marginal income tax rates in the country. However, because the tax system is progressive, many taxpayers pay an effective tax rate that is much lower than their highest marginal bracket.
Another advantage for retirees is that California exempts Social Security benefits from state income tax, although most other retirement income remains taxable.
Frequently Asked Questions
What is the California state income tax rate?
California’s income tax rates range from 1% to 12.3%, with an additional 1% tax on taxable income over $1 million.
Does California have different tax brackets?
Yes. California has separate tax brackets for Single, Married Filing Jointly, Married Filing Separately, and Head of Household filers.
Does California tax retirement income?
Most pensions and withdrawals from traditional retirement accounts are taxable, but Social Security retirement benefits are exempt from California income tax.
Electronic Filing Recommendation 💻
Filing your California and federal tax returns electronically is the fastest and most accurate way to report income, claim eligible deductions and credits, and receive your refund quickly.
Benefits include:
- Faster refund processing
- Improved filing accuracy
- Secure electronic records
- Direct deposit of refunds
- Immediate filing confirmation
| Save 10% on TurboTax Electronic Tax Filing! |
| Take advantage of this offer and save 10% on TurboTax Electronic Tax Filing! |
