California's income tax system uses brackets that increase with your earnings
California charges state income tax on wages, self-employment income, investment gains, and other earnings. The tax rate you pay depends on how much you earn — the more you make, the higher your rate. California uses a progressive tax system, which means your income is taxed at different rates as it moves into higher brackets, not all at one rate.
For the 2024 tax year, California's income tax rates range from 1% on the lowest earnings to 13.3% on the highest. The state also adds a 1% Mental Health Tax on income over $1 million, bringing the top rate to 13.3%. These rates explore to California residents on all income earned anywhere, and to non-residents only on income earned within California.
The exact bracket you fall into depends on your filing status — single, married filing jointly, married filing separately, or head of household — and your total taxable income after deductions. The state adjusts these brackets each year for inflation, so the income ranges that trigger each rate change annually.
Key Takeaways
- California income tax rates run from 1% to 13.3%, with rates increasing as your income rises into higher brackets.
- Your filing status (single, married, head of household) determines which bracket your income falls into.
- The state adjusts tax brackets each year for inflation, so the income thresholds that trigger each rate change annually.
- You owe California tax on all income if you are a resident, and on California-source income only if you are a non-resident.
- Self-employment income, investment gains, and retirement distributions are all subject to California income tax.
The 2024 California tax brackets for each filing status
California publishes new tax brackets each January. The brackets below are for the 2024 tax year and explore to income earned in 2024 (reported on your 2024 return filed in 2025). Each bracket shows the income range and the tax rate that applies to income within that range.
| Tax Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 1% | $0 – $10,099 | $0 – $20,198 | $0 – $14,348 |
| 2% | $10,099 – $23,942 | $20,198 – $47,884 | $14,348 – $33,873 |
| 4% | $23,942 – $37,788 | $47,884 – $75,576 | $33,873 – $53,589 |
| 6% | $37,788 – $52,455 | $75,576 – $104,910 | $53,589 – $72,383 |
| 8% | $52,455 – $66,295 | $104,910 – $132,590 | $72,383 – $91,436 |
| 9.3% | $66,295 – $340,328 | $132,590 – $680,656 | $91,436 – $408,392 |
| 10.3% | $340,328 – $408,392 | $680,656 – $816,784 | $408,392 – $476,456 |
| 11.3% | $408,392 – $680,656 | $816,784 – $1,361,312 | $476,456 – $748,720 |
| 12.3% | $680,656 and above | $1,361,312 and above | $748,720 and above |
| 1% Mental Health Tax | Income over $1,000,000 (all filing statuses) |
The Mental Health Tax of 1% applies to all income over $1 million, regardless of filing status. This means a single filer earning $1.5 million pays the 12.3% rate on income from $680,656 to $1 million, then the 1% Mental Health Tax on the remaining $500,000, for a combined top rate of 13.3%.
How tax brackets work — you do not pay one rate on all your income
A common misunderstanding is that if you fall into the 9.3% bracket, you pay 9.3% on your entire income. That is not how it works. You pay the rate for each bracket only on the income that falls within that bracket. This is called marginal taxation.
For example, a single filer in 2024 with $100,000 in taxable income does not pay 9.3% on all $100,000. Instead, they 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 next $14,667, then 8% on the next $13,840, then 9.3% on the remaining $33,705. The result is a blended rate of roughly 5.8% on the full $100,000.
This is why your effective tax rate (the percentage you actually pay on all your income) is always lower than your marginal tax rate (the rate on your last dollar earned). Knowing your marginal rate matters when you are deciding whether to take on extra income or make a large deduction, because that decision affects only the income in your current bracket.
What income is subject to California tax
California taxes most forms of income: wages from employment, self-employment income, interest and dividends, capital gains, rental income, retirement distributions, and gambling winnings. Some income is exempt, including certain disability benefits, workers' compensation, and some retirement contributions (like traditional 401(k) contributions, which are deducted before state tax is calculated).
If you are a California resident, you owe tax on all income from any source, whether earned in California or elsewhere. If you are a non-resident, you owe tax only on income earned from California sources — wages paid by a California employer, rental income from California property, or gains from selling California real estate. The state uses a residency test based on physical presence and intent to determine your status.
Self-employed people in California must pay both state income tax and the self-employment tax that funds Social Security and Medicare. California does not have a separate self-employment tax, but you deduct half of your self-employment tax when calculating your California taxable income.
Deductions and credits that lower your California tax
Your California taxable income is not your gross income — it is your gross income minus deductions. California allows a standard deduction that varies by filing status and age. For 2024, the standard deduction ranges from $5,202 for a single filer under 65 to $6,568 for a single filer 65 or older. Married filers get roughly double these amounts.
You can also deduct certain expenses: mortgage interest (up to limits), property taxes (up to $10,000 combined with state and local income taxes under federal rules, though California allows the full amount), charitable donations, and business expenses if you are self-employed. If your deductions do not exceed the standard deduction, you use the standard deduction instead.
California also offers tax credits that directly reduce the tax you owe. These include the Earned Income Tax Credit (EITC) for lower-income workers, the Child and Dependent Care Credit, and the Renter's Credit for tenants with low to moderate income. Credits are more valuable than deductions because they reduce your tax dollar-for-dollar rather than reducing your taxable income.
How to find your California tax rate and file your return
You report California income tax on Form 540 (the California resident income tax return) or Form 540-NR (for non-residents). You can file on paper or electronically through the California Franchise Tax Board (FTB) website at ftb.ca.gov, or through a tax software provider that supports California returns.
If you use tax software, the program calculates your bracket and tax automatically once you enter your income and deductions. If you are filing by hand, you can look up your tax in the tax tables provided with the Form 540 instructions, or calculate it manually using the bracket rates above. The FTB also publishes a tax rate schedule each year showing the exact tax owed at each income level.
California taxes are due on the same date as federal taxes: April 15 of the following year (or the next business day if April 15 falls on a weekend). If you have taxes withheld from your paycheck, your employer sends that to the state throughout the year. If you are self-employed or have income without withholding, you may need to make estimated tax payments quarterly.
Special situations: high earners and the Mental Health Tax
The 1% Mental Health Tax on income over $1 million was added in 2013 and is separate from the regular income tax brackets. It applies to all income above $1 million in a single year, regardless of filing status. This means a married couple filing jointly with $2 million in income pays the Mental Health Tax on $1 million of that income.
High earners should also be aware that California does not recognize the federal Net Investment Income Tax (a 3.8% federal tax on certain investment income for high earners). However, California does tax investment income at the regular rates, so your capital gains and dividends are subject to the same brackets as your wages.
If you move out of California, you may still owe tax on income earned while you were a resident. The state considers you a resident if you spend more than nine months in California in a tax year, or if you maintain a permanent home there and spend any time there during the year. If you are unsure of your status, the FTB publishes guidelines on its website.
Frequently Asked Questions
Do I have to pay California income tax if I work remotely for a non-California company?
Yes, if you are a California resident. You owe California tax on all income from any source. If you are a non-resident who works remotely for a California company, you owe tax on that income. If you are a non-resident working for a non-California company, you do not owe California tax on that income.
What is my effective tax rate if I earn $75,000 in California?
For a single filer in 2024 with $75,000 in taxable income (after deductions), the tax is roughly $4,200, which is an effective rate of about 5.6%. This is lower than your marginal rate of 9.3% because you pay lower rates on the income in the lower brackets first.
Can I reduce my California taxes by contributing to a 401(k)?
Yes. Traditional 401(k) contributions are deducted from your income before California tax is calculated, so they lower your taxable income and your tax bill. Roth 401(k) contributions are made with after-tax dollars and do not reduce your California tax, though they grow tax-free and are not taxed when withdrawn.
Do I owe California tax on Social Security benefits?
No. California does not tax Social Security benefits, even if your federal return includes them as income. This is one of the few income sources California exempts from tax.
When do the 2025 tax brackets come out?
California publishes new tax brackets each January for the tax year beginning that month. The 2025 brackets will be available on the FTB website in January 2025 and will explore to income earned in 2025 (reported on your 2025 return filed in 2026).