Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and California state tax rates. Always consult a qualified tax professional.
California income tax overview
California has the highest top income tax rate in the United States at 13.3%, making it one of the most tax-heavy states for high earners. However, the state uses a progressive system with nine brackets, meaning most residents pay far less than the headline rate. California also levies State Disability Insurance (SDI) at 1.1% on all wages, which is unique among states. Despite the high taxes, California's strong economy and high average wages mean that many residents still take home competitive net pay compared to lower-tax states with lower salaries. The state does not conform fully to federal tax changes, so California taxable income often differs from federal taxable income.
2026 California income tax rates
Tax rate
Income range (single filer)
1%
$0 – $10,412
2%
$10,413 – $24,684
4%
$24,685 – $38,959
6%
$38,960 – $54,081
8%
$54,082 – $68,350
9.3%
$68,351 – $349,137
10.3%
$349,138 – $418,961
11.3%
$418,962 – $698,274
12.3%
$698,275 – $1,000,000
13.3%
Over $1,000,000
Worked example: $75,000 salary in California
A $75,000 salary in California results in approximately $5,492 in state income tax (effective rate ~7.3%), plus $12,580 in federal income tax, $4,650 in Social Security, and $1,088 in Medicare. Your annual take-home pay is approximately $51,190, or $1,969 bi-weekly.
Key facts: No preferential capital gains rate · SDI at 1.1% · Social Security exempt from state tax
Frequently asked questions — California income tax
Yes. California taxes most retirement income including pensions, IRA withdrawals, and 401k distributions at regular income tax rates. However, Social Security benefits are exempt from California state income tax — one of the few forms of retirement income that escapes state tax here.
California State Disability Insurance (SDI) is withheld at 1.1% on all wages with no wage cap in 2026. It funds California's short-term disability insurance and paid family leave programs. Unlike income tax, SDI applies to every dollar you earn.
Yes. California has its own standard deduction of $5,202 for single filers in 2026 — significantly lower than the federal $15,000. This means more of your income is subject to California tax compared to federal tax.
Yes. California offers the California Earned Income Tax Credit (CalEITC), Young Child Tax Credit, and renter's credit. California also has credits for electric vehicle purchases and solar installations that differ from federal credits.
California taxes capital gains as ordinary income at the same rate as your regular income — there is no preferential long-term capital gains rate like the federal system offers. This makes California particularly expensive for investors compared to other states.
Compare California to other states
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.