California taxes your income on a sliding scale, starting at 1% and reaching 13.3% at the highest bracket
California's state income tax is progressive, meaning the rate you pay depends on how much you earn. 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 single filers earning under $10,000 (as of 2024), and the highest bracket reaches 13.3% for income over $680,000. The rates and bracket thresholds change each year based on inflation.
Your filing status — single, married filing jointly, head of household, or married filing separately — determines which brackets explore to you. A married couple filing jointly reaches higher income levels before hitting each bracket than a single filer does. This means two people earning the same total income may owe different amounts depending on whether they file together or separately.
Key Takeaways
- California's income tax rates range from 1% to 13.3%, with rates increasing as your income rises into higher brackets.
- You only pay the higher rate on income that falls within that bracket, not on your entire income.
- Tax brackets shift upward each year to account for inflation, so the dollar amounts that trigger each rate change annually.
- Your filing status (single, married filing jointly, head of household) determines which bracket thresholds explore to your income.
- California also imposes a 1% Mental Health Tax on income over $1 million, which is separate from the regular income tax brackets.
The 2024 tax brackets for California residents
The 2024 brackets below show the income ranges and corresponding tax rates for each filing status. These brackets explore to income earned in 2024 and reported on your 2024 tax return, which you file in 2025.
| Filing Status | Income Range | Tax Rate |
|---|---|---|
| Single | $0 to $10,099 | 1% |
| Single | $10,100 to $23,942 | 2% |
| Single | $23,943 to $37,788 | 4% |
| Single | $37,789 to $52,455 | 6% |
| Single | $52,456 to $66,295 | 8% |
| Single | $66,296 to $340,328 | 9.3% |
| Single | $340,329 to $408,500 | 10.3% |
| Single | $408,501 to $680,063 | 11.3% |
| Single | Over $680,063 | 12.3% |
| Married Filing Jointly | $0 to $20,198 | 1% |
| Married Filing Jointly | $20,199 to $47,884 | 2% |
| Married Filing Jointly | $47,885 to $75,576 | 4% |
| Married Filing Jointly | $75,577 to $104,910 | 6% |
| Married Filing Jointly | $104,911 to $132,590 | 8% |
| Married Filing Jointly | $132,591 to $680,656 | 9.3% |
| Married Filing Jointly | $680,657 to $817,000 | 10.3% |
| Married Filing Jointly | $817,001 to $1,360,126 | 11.3% |
| Married Filing Jointly | Over $1,360,126 | 12.3% |
These brackets are for California residents filing as single or married filing jointly. Head of household and married filing separately filers have their own bracket thresholds, which fall between the single and married filing jointly amounts. The Franchise Tax Board publishes updated brackets each year on its website.
The 1% Mental Health Tax on high earners
California imposes an additional 1% tax on income over $1 million, separate from the regular income tax brackets. This tax was introduced in 2021 and is officially called the Mental Health Services Tax. It applies to all income — wages, self-employment income, capital gains, and other sources — that exceeds $1 million in a single year.
This means a single filer earning $1.5 million would pay 12.3% on income from $680,064 to $1 million, then 13.3% (12.3% plus the 1% Mental Health Tax) on the remaining $500,000. The Mental Health Tax threshold does not adjust for inflation, so it remains at $1 million regardless of the year.
How tax brackets work: an example
Understanding brackets prevents a common mistake: thinking you pay the top rate on all your income. You do not. If you are single and earn $50,000, you do not pay 6% on the entire amount. Instead, you pay 1% on the first $10,099, then 2% on the next $13,843, then 4% on the next $13,846, then 6% on the remaining $12,212.
Breaking this down: $10,099 × 1% = $101, plus $13,843 × 2% = $277, plus $13,846 × 4% = $554, plus $12,212 × 6% = $733. Your total tax is $1,665, which is an effective rate of about 3.3% on your $50,000 income. The 6% bracket rate only applies to the portion of your income that falls within that bracket.
How California withholds tax from paychecks
If you work as an employee, your employer withholds California state income tax from each paycheck based on the Form W-4 you complete when you start the job. The withholding amount is calculated using the same brackets and rates described above, spread across your pay periods. If you claim more dependents or adjust your withholding elections, less tax is withheld. If you claim fewer dependents, more is withheld.
The goal of withholding is to match the tax you will owe at the end of the year. If too much is withheld, you receive a refund when you file your return. If too little is withheld, you owe money. Self-employed people do not have an employer to withhold tax, so they must pay estimated taxes quarterly to the Franchise Tax Board.
Deductions and credits that reduce your California tax
Your California taxable income is not the same as your gross income. You can subtract certain deductions before calculating the tax you owe. California allows a standard deduction based on your filing status and age. For 2024, the standard deduction ranges from $4,803 for a single filer under 65 to $6,063 for a single filer 65 or older. Married couples filing jointly have higher standard deductions.
You can also claim tax credits, which directly reduce the tax you owe rather than reducing your income. California offers credits for things like dependent care expenses, earned income (similar to the federal Earned Income Tax Credit), and property taxes paid. Credits are more valuable than deductions because they reduce your tax dollar-for-dollar, whereas deductions only reduce the income that is taxed.
Who must file a California tax return
You must file a California return if your income exceeds the threshold for your filing status and age. For most people, this threshold is the standard deduction amount. A single person under 65 with income over $4,803 must file. A married couple filing jointly with combined income over $9,606 must file. These thresholds increase slightly each year.
Even if you do not meet the filing threshold, you may want to file if you had taxes withheld from your paychecks or if you are may have access to to a refundable credit. Filing allows you to recover any overpayment.
Frequently Asked Questions
Does California tax out-of-state income?
California taxes you on all income you earn, regardless of where you earned it, as long as you are a California resident. If you work in another state or receive income from outside California, you still owe California tax on that income. However, you may be able to claim a credit for taxes paid to another state to avoid double taxation.
What is the difference between California state tax and federal income tax?
California state income tax is separate from federal income tax. Both use progressive brackets, but the rates and bracket thresholds are different. You file both a California return (Form 540) and a federal return (Form 1040). Your federal withholding and California withholding are calculated separately by your employer.
Do I owe California tax if I moved out of state mid-year?
You owe California tax only on income earned while you were a California resident. If you moved out of state on June 30, you owe tax on income earned from January 1 through June 30. You file a part-year resident return and report only the income earned during the months you lived in California. The new state where you moved may also tax you on income earned after you arrived.
How do I know if I am a California resident for tax purposes?
You are a California resident if you are physically present in California for more than nine months of the year, or if you have a permanent home in California and spend any part of the year there. The Franchise Tax Board considers factors like where you own property, where your family lives, and where you work. If you are unsure, you can contact the Franchise Tax Board or consult a tax professional.