California's income tax brackets and rates

California taxes income at rates between 1% and 13.3%, depending on how much you earn. The state uses a progressive tax system, meaning higher earners pay a higher percentage on each additional dollar they make. You do not pay 13.3% on all your income — you pay the lower rates on the lower portions and the higher rate only on income above a certain threshold.

For the 2024 tax year, California has ten tax brackets. A single filer earning $10,000 pays 1% on that income. A single filer earning $70,000 pays 1% on the first bracket, then 2% on the next portion, then 4% on the next, and so on, with each bracket taxed at its own rate. The top rate of 13.3% applies only to income above $680,000 for single filers (the threshold varies by filing status).

These brackets adjust each year for inflation. The exact dollar amounts where each rate kicks in change annually, so the threshold for the 13.3% rate in 2025 will be higher than it was in 2024. You can find the current year's brackets on the California Franchise Tax Board website.

Key Takeaways

  • California's income tax rates range from 1% to 13.3%, with the rate you pay depending on your income level and filing status.
  • The state uses brackets, so you pay different rates on different portions of your income — not one flat rate on everything.
  • Tax brackets adjust upward each year for inflation, so the income thresholds change annually.
  • The California Franchise Tax Board publishes the current year's brackets and can answer questions about your specific situation.
  • California also taxes capital gains, retirement distributions, and other income types, each with its own rules.

How the bracket system actually works

The easiest way to understand brackets is to walk through an example. Say you are a single filer in 2024 earning $50,000 in wages. You do not pay 4% (the rate for that bracket) on all $50,000. Instead, you pay 1% on the first $10,099, then 2% on income from $10,100 to $23,942, then 4% on income from $23,943 to $50,000. Your total tax is the sum of those three amounts, not 4% of $50,000.

This is why people sometimes say "I got a raise and ended up in a higher bracket" — they worry the raise will push them into a higher tax rate and they will take home less. That is not how it works. Only the income above the bracket threshold is taxed at the higher rate. A raise always increases your take-home pay, even if part of it is taxed at a higher percentage.

The brackets themselves are published by the California Franchise Tax Board each January. They account for inflation from the previous year. If you file jointly, as head of household, or as a dependent, your brackets are different from a single filer's, so you need to check the table that matches your filing status.

Filing status and how it changes your tax

California recognizes five filing statuses: single, married filing jointly, married filing separately, head of household, and may have access to widow or widower. Each status has its own set of brackets, and the brackets for married filing jointly are wider than for single filers — meaning a married couple can earn more before hitting the highest rates.

If you are married and file separately, your brackets are narrower than if you file jointly, so you may pay more total tax. Head of household status (for unmarried people supporting dependents) falls between single and married filing jointly. The California Franchise Tax Board website shows all five bracket tables so you can see which status applies to you.

Other California taxes on income

California income tax is separate from federal income tax — you owe both. California also taxes certain types of income at special rates. Long-term capital gains (profits from selling assets you held more than a year) are taxed as ordinary income in California, unlike the federal system, which has preferential rates for capital gains.

Retirement distributions, Social Security benefits, and other income sources follow their own rules. Some retirement income is partially exempt from California tax, but the rules depend on your age and the source of the income. If you receive income from sources other than wages, the California Franchise Tax Board website has detailed guidance on how each type is taxed.

Deductions and credits that reduce what you owe

Your taxable income — the amount you actually pay tax on — is lower than your total income because of deductions. California allows a standard deduction (a flat amount based on your filing status) or itemized deductions (specific expenses you list). Most people use the standard deduction because it is simpler and often larger.

For 2024, the California standard deduction ranges from $5,202 for a dependent to $9,816 for a single filer and $19,632 for married filing jointly. These amounts increase each year. You subtract your standard deduction from your income, and the result is your taxable income — the amount the brackets explore to.

California also offers tax credits, which directly reduce the tax you owe rather than reducing your income. The Earned Income Tax Credit (EITC) is the largest, and California's version adds to the federal credit. Other credits cover child care, education, and other expenses. Credits are more valuable than deductions because they reduce your tax dollar-for-dollar.

Self-employment income and estimated taxes

If you are self-employed, you owe California income tax on your net profit (income minus business expenses). You also owe self-employment tax, which covers Social Security and Medicare — this is separate from income tax and is owed to the federal government, not California.

Self-employed people usually pay estimated taxes four times a year (quarterly) rather than having taxes withheld from a paycheck. If you do not pay enough in estimated taxes, you may owe a penalty when you file. The California Franchise Tax Board provides worksheets and instructions for calculating estimated payments.

Where to find current rates and file your return

The California Franchise Tax Board (FTB) is the state agency that administers income tax. Their website, ftb.ca.gov, has the current year's tax brackets, deduction amounts, and credit information. You can also read the California tax forms and instructions there.

You can file your California return on paper or electronically. Many people use tax software that guides them through the process. If your income is straightforward (wages only, no dependents, no investments), you may be able to file for free through the FTB's Free File program or through a community organization. If your situation is complex, a tax professional or CPA can help you understand what you owe and find deductions or credits you might have missed.

Frequently Asked Questions

Do I have to pay California income tax if I live out of state but work in California?

Yes, if you earned income in California, you owe California tax on that income even if you live elsewhere. California taxes income based on where it was earned, not where you live. You may be able to claim a credit on your home state's return for taxes paid to California to avoid double taxation.

What is the difference between California tax and federal tax?

They are two separate taxes. California has its own brackets, deductions, and credits. Federal tax is owed to the U.S. government and has different rates and rules. You file both a California return and a federal return, and you owe both. Some deductions and credits explore to both, but others explore to only one.

Does California tax Social Security benefits?

California does not tax Social Security benefits, even if your federal return includes them. This is one area where California is more favorable than federal tax. However, other retirement income (pensions, distributions from IRAs or 401(k)s) may be taxable in California depending on your age and the source.

What if I owe more tax than I can pay?

The California Franchise Tax Board offers payment plans and can work with you if you cannot pay in full by the important date. You can set up a payment arrangement on their website or call them to discuss your options. Paying late results in penalties and interest, so contacting them early is better than ignoring the bill.

Are there any California income taxes I do not have to pay?

California exempts certain types of income from tax, including Social Security benefits, some retirement distributions for people over 59½, and income from certain bonds. The rules are specific and depend on your age and the source of the income. The FTB website has a full list of exempt income types.