California uses a progressive tax system with tax brackets that increase with income
California's income tax brackets are the percentages of tax you pay on different portions of your income. The state uses a progressive system, meaning you pay a higher percentage only on income that falls into higher brackets — not on your entire income. For 2024, California has 13 tax brackets ranging from 1% on the lowest incomes to 13.3% on the highest. The exact dollar amounts that define each bracket change yearly based on inflation.
Your tax bracket depends on your filing status (single, married filing jointly, head of household, or married filing separately) and your total income for the year. You do not jump into a single bracket; instead, you pay the bracket rate only on the income that falls within that range. For example, if you are single and earn $50,000, you do not pay 9.3% on all of it — you pay 1% on the first portion, then higher percentages as your income climbs through successive brackets.
Key Takeaways
- California's 13 tax brackets range from 1% to 13.3%, and you only pay each rate on income within that specific bracket range, not on your whole income.
- The dollar amounts that define each bracket adjust annually for inflation, so the same income may fall into a different bracket from year to year.
- Your filing status (single, married filing jointly, head of household, or married filing separately) determines which bracket table applies to you.
- California's top rate of 13.3% applies only to very high earners and includes both the base income tax and an additional Mental Health Tax on high incomes.
The 13 California tax brackets for 2024
California's 2024 tax brackets for single filers start at 1% on income up to $10,099, then move through 2%, 4%, 6%, 8%, 9.3%, 10.3%, 11.3%, 12.3%, and 13.3%. Each bracket covers a specific income range. Once your income exceeds $68,202, you enter the 10.3% bracket. At $341,010, you move into the 11.3% bracket. The highest earners — those with income over $682,020 — pay 13.3%.
If you are married filing jointly, the income ranges are roughly double those for single filers, but the percentages remain the same. For example, the 1% bracket for married filers covers income up to $20,198 instead of $10,099. Head of household filers have their own bracket table with ranges between single and married filing jointly. Married filing separately filers use the same ranges as single filers.
These dollar amounts are for 2024 and will shift upward in 2025 to account for inflation. The Franchise Tax Board, which administers California income tax, publishes updated brackets each year in October or November for the following tax year.
How the progressive system actually works in practice
The most common misunderstanding is that moving into a higher bracket means you pay that rate on your entire income. That is not how it works. If you are single and earn $70,000, you do not pay 10.3% on all $70,000. Instead, you pay 1% on the first $10,099, then 2% on the next portion, then 4%, and so on, until you reach the $70,000 mark.
Here is a simplified example: suppose you are single and earn $50,000. You would pay 1% on the first $10,099 (about $101), then 2% on the income from $10,099 to $23,942 (about $276), then 4% on the income from $23,942 to $37,788 (about $554), then 6% on the income from $37,788 to $50,000 (about $732). Your total tax would be roughly $1,663, which is an effective rate of about 3.3% — much lower than the 6% bracket you are in. This is why the system is called progressive: your overall tax rate rises gradually as your income climbs.
The Mental Health Tax on high earners
California's 13.3% top rate includes a 1% Mental Health Tax that applies only to income over $1 million. This tax was approved by voters in 2020 and funds mental health and homeless services. If you earn $1.5 million, you pay the regular California income tax rate (12.3%) on income up to $1 million, then 13.3% (which includes the 1% Mental Health Tax) on the $500,000 above $1 million.
This means the 13.3% bracket is not a single flat rate — it is actually 12.3% plus the 1% Mental Health Tax. For tax planning purposes, high-income earners should be aware that this additional tax applies only to income exceeding the $1 million threshold.
How federal brackets differ from California brackets
California state income tax brackets are separate from federal income tax brackets. You will owe both. The federal government has its own set of brackets and rates, which are different from California's. For 2024, federal brackets for single filers range from 10% to 37%, and the income ranges are also different from California's.
When you file your taxes, you calculate your federal tax liability using federal brackets, then separately calculate your California tax liability using California brackets. Your federal return (Form 1040) and your California return (Form 540) are filed separately, though many tax software programs prepare both at the same time. Some people find it helpful to think of California tax as an additional layer on top of federal tax, since you pay both.
When and how to find the current year's brackets
California's tax brackets are published by the Franchise Tax Board on their official website, usually in late October for the following year. You can find them by searching "California tax brackets" and the year on the Franchise Tax Board website (ftb.ca.gov). The brackets are also included in the instructions for Form 540, California's resident income tax return.
If you use tax preparation software, the brackets are built in automatically — the software applies the correct bracket table based on your filing status and income. If you are preparing your return by hand or want to understand your bracket for planning purposes, the Franchise Tax Board website is the official source. Do not rely on brackets from previous years, since they change annually.
Why your bracket matters for tax planning
Understanding your tax bracket can help you make decisions about income timing, deductions, and retirement contributions. For example, if you are close to the edge of a higher bracket, a large deduction might keep you in a lower bracket and save you money. Similarly, if you are self-employed or have variable income, knowing your bracket helps you estimate what you will owe and plan quarterly tax payments.
However, tax planning based on brackets can get complicated quickly, especially if you have investment income, business income, or significant deductions. If you are considering a major financial decision — like selling a business, taking a large bonus, or making a large charitable contribution — it is worth talking to a tax professional who can model the impact on your specific situation.
Frequently Asked Questions
Does moving into a higher tax bracket mean I pay that rate on all my income?
No. You only pay the higher rate on income that falls within that bracket. If you earn $50,000 as a single filer in California, you do not pay 6% on all of it — you pay 1%, 2%, 4%, and 6% on different portions. Your overall tax rate is much lower than your top bracket rate.
How do California tax brackets compare to federal tax brackets?
California and federal brackets are completely separate. California's top rate is 13.3%, while the federal top rate is 37%. The income ranges are also different. You calculate and pay both state and federal income tax — they do not replace each other.
Do the tax brackets change every year?
Yes. California adjusts the dollar amounts in each bracket annually to account for inflation. The percentages stay the same, but the income ranges shift upward each year. The Franchise Tax Board publishes the new brackets in late October for the following tax year.
What is the Mental Health Tax and who pays it?
The Mental Health Tax is a 1% additional tax on income over $1 million. It was approved by voters in 2020 and funds mental health and homeless services. Only high-income earners pay it, and only on income above the $1 million threshold.
Where can I find California's current tax brackets?
The Franchise Tax Board publishes current brackets on ftb.ca.gov. You can also find them in the instructions for Form 540, California's resident income tax return. Tax software programs include the correct brackets automatically.