California's payroll tax rate depends on your income and filing status
California has a state income tax that is withheld from your paycheck. Unlike federal income tax, which has the same rates nationwide, California's rate changes based on how much you earn. The state uses a progressive tax system — the more you make, the higher percentage you pay. For 2024, California's tax rates range from 1% on the lowest incomes to 13.3% on the highest, though most workers fall somewhere in the middle.
Your actual withholding depends on three things: your gross pay, your filing status (single, married, head of household), and the number of dependents you claim on your W-4 form. Your employer uses these details to calculate how much to hold from each paycheck. The amount withheld is not the same as the tax you owe at the end of the year — it is an estimate meant to get you close so you do not owe a large bill or receive a huge refund.
California also requires employers to withhold State Disability Insurance (SDI) and Paid Family Leave (PFL) taxes. These are separate from income tax and appear as distinct line items on your pay stub. SDI covers you if you cannot work due to illness or injury. PFL covers you if you take time off to bond with a new child or care for a family member. Both are mandatory deductions.
Key Takeaways
- California state income tax rates range from 1% to 13.3% depending on your income bracket, and your employer withholds an estimate from each paycheck based on your W-4 form.
- State Disability Insurance (SDI) and Paid Family Leave (PFL) are separate mandatory deductions that appear on your pay stub alongside income tax withholding.
- Your actual withholding amount changes if you update your W-4, have multiple jobs, or experience a major life change like marriage or a new dependent.
- The amount withheld is not final — you may owe more or receive a refund when you file your state tax return, usually due April 15.
California income tax brackets for 2024
California's tax brackets are adjusted each year for inflation. The brackets apply differently based on your filing status. A single filer and a married filer filing jointly do not pay the same tax on the same income — the brackets are wider for joint filers.
| Tax Rate | Single Filer Income Range | Married Filing Jointly Income Range |
|---|---|---|
| 1% | $0 to $10,099 | $0 to $20,198 |
| 2% | $10,099 to $23,942 | $20,198 to $47,884 |
| 4% | $23,942 to $37,788 | $47,884 to $75,576 |
| 6% | $37,788 to $52,455 | $75,576 to $104,910 |
| 8% | $52,455 to $66,295 | $104,910 to $132,590 |
| 9.3% | $66,295 to $340,328 | $132,590 to $680,656 |
| 10.3% | $340,328 to $408,362 | $680,656 to $816,724 |
| 11.3% | $408,362 to $680,656 | $816,724 to $1,361,312 |
| 12.3% | $680,656 to $816,724 | $1,361,312 to $1,633,448 |
| 13.3% | Over $816,724 | Over $1,633,448 |
These brackets apply to your taxable income after deductions. If you claim the standard deduction or itemize deductions, your taxable income is lower than your gross pay, which means you fall into a lower bracket. The brackets shown here are for 2024 and will change in 2025.
State Disability Insurance (SDI) and Paid Family Leave (PFL) deductions
California requires all employees to contribute to State Disability Insurance. The SDI rate for 2024 is 1.0% of your gross wages, up to a maximum taxable wage base of $153,164 per year. This means the most you pay in SDI tax in a year is about $1,532. SDI covers you if you cannot work because of a non-work-related illness, injury, or pregnancy. The benefit replaces part of your lost wages while you recover.
Paid Family Leave (PFL) is a separate deduction. The PFL rate for 2024 is 0.7% of your gross wages, with the same wage base limit of $153,164. PFL covers you if you take time off to bond with a new child (biological, adopted, or foster), care for a seriously ill family member, or handle certain military family needs. Like SDI, PFL replaces a portion of your wages during the leave period.
Both SDI and PFL are withheld by your employer and sent to the state. You do not pay these taxes directly — they come out of your paycheck automatically. If you are self-employed, you may owe these taxes differently; check with the California Employment Development Department (EDD) for your situation.
How to read your California pay stub
Your pay stub shows several tax withholdings. Gross pay is the total before any deductions. From there, your employer subtracts federal income tax withholding, Social Security tax (6.2%), Medicare tax (1.45%), California state income tax, SDI, and PFL. Some employers also deduct health insurance premiums, retirement contributions, or other benefits. Your net pay is what remains after all deductions.
The California state income tax line on your stub reflects the amount your employer estimates you owe based on your W-4 form and current pay. If you have multiple jobs, work seasonal hours, or have a spouse who also works, your withholding may be too high or too low. You can adjust it by filing a new W-4 with your employer at any time.
If you see a large refund or owe a lot when you file your state return, that signals your withholding was off. You can use the California Franchise Tax Board's withholding calculator on their website to check whether your current W-4 is accurate.
When your withholding changes
Your California tax withholding adjusts automatically if you change your W-4 form. Common reasons to update your W-4 include getting married, having a child, taking a second job, or experiencing a major drop in income. You can file a new W-4 with your employer's payroll department — there is no fee, and the change usually takes effect within one or two pay periods.
If you work multiple jobs in California, your combined income across all jobs determines your tax bracket. Each employer withholds based only on the pay from that job, which can result in under-withholding. You can ask one employer to withhold extra to make up the difference, or you can adjust your W-4 at each job to account for the others.
Major life changes — marriage, divorce, adoption, or a significant income change — are good times to review your withholding. The Franchise Tax Board website has a withholding calculator that walks you through your situation and tells you whether you need to adjust your W-4.
Self-employment and contractor taxes in California
If you are self-employed or work as an independent contractor, you do not have an employer to withhold taxes. You are responsible for paying estimated taxes four times a year to the Franchise Tax Board. You also owe self-employment tax to cover both the employee and employer portions of Social Security and Medicare.
Self-employed workers in California must also pay SDI and PFL taxes, but the calculation and payment method differ from employees. You report these on your state tax return or through the EDD's online system. Many self-employed people set aside 25% to 30% of their net income to cover all state and federal taxes, though the exact amount depends on your income level and deductions.
Filing your California state tax return
California state tax returns are due April 15 each year, the same date as federal returns. You file using Form 540 (the main return) or Form 540-2EZ (a shorter version for simple situations). You can file online through the Franchise Tax Board website, by mail, or through a tax preparer.
When you file, you report all income you earned in California during the year and claim any deductions or credits you are may have access to to. The Franchise Tax Board compares your total tax liability to the amount you had withheld throughout the year. If you withheld too much, you receive a refund. If you withheld too little, you owe the difference. Refunds typically arrive within 30 to 60 days if you file electronically.
Frequently Asked Questions
Why is my California tax withholding so high?
High withholding usually means your W-4 does not match your actual situation. Common causes include claiming too few dependents, having multiple jobs, or a spouse who also works. You can file a new W-4 with your employer to adjust it. Use the Franchise Tax Board's withholding calculator to see what your W-4 should say.
Do I pay California income tax if I work remotely for an out-of-state company?
Yes, if you live and work in California, you owe California income tax on that income, even if your employer is based elsewhere. Your employer should withhold California tax from your paycheck. If they do not, contact your employer's payroll department or the Franchise Tax Board for guidance.
What is the difference between SDI and PFL?
SDI covers you if you cannot work due to illness, injury, or pregnancy. PFL covers you if you take time off to bond with a new child or care for a family member. Both are mandatory deductions, but they cover different situations. You can use both in the same year if your circumstances may have access to.
Can I get my California taxes refunded if I overpaid?
Yes. When you file your state return, the Franchise Tax Board calculates whether you overpaid or underpaid. If you overpaid, you receive a refund, usually within 30 to 60 days of filing electronically. If you underpaid, you owe the difference.
Do I have to file a California return if I only worked part of the year?
It depends on your income and filing status. Generally, if you had any California income tax withheld, you should file to get a refund of the overpayment. Use the Franchise Tax Board's filing requirements tool on their website to determine whether you must file.