California's tax brackets and rates for 2024

California has 10 tax brackets that range from 1% to 13.3%. The rate you pay depends on your filing status (single, married filing jointly, head of household, or married filing separately) and your total income for the year. The state adjusts these brackets annually for inflation, so the income thresholds change each year.

For single filers in 2024, the brackets start at 1% on income up to $10,099, then step up through 2%, 4%, 6%, 8%, 9.3%, 10.3%, 11.3%, 12.3%, and finally 13.3% on income over $680,063. Married couples filing jointly have higher thresholds at each bracket level, but pay the same percentages. The 13.3% rate is California's highest and applies only to the top income tier.

Key Takeaways

  • California's top tax rate is 13.3%, but most people pay between 1% and 9.3% depending on their income level and filing status.
  • Tax brackets shift each year because California adjusts them for inflation, so the income thresholds that trigger each rate change annually.
  • Your actual tax bill depends on your total income, deductions you claim, and credits you may receive, not just your bracket rate.
  • Self-employed people and business owners may owe additional taxes on net earnings beyond the standard income tax.

How to calculate your estimated tax

Start with your total income for the year — wages, self-employment earnings, investment income, and other sources combined. Subtract any deductions you claim: the standard deduction (which varies by filing status and age) or itemized deductions if you choose that route instead. The result is your taxable income.

Once you have taxable income, apply the tax brackets for your filing status. If you are single with $50,000 in taxable income, you would owe 1% on the first $10,099, then 2% on the next portion, and so on up through the bracket that contains your $50,000. You do not pay the higher rate on all your income — only on the portion that falls within each bracket. After calculating tax this way, subtract any tax credits you are may have access to to (such as the Earned Income Tax Credit or child tax credits), and that gives you your total California income tax.

Standard deduction amounts for 2024

The standard deduction reduces your taxable income before you apply the tax brackets. For 2024, the standard deduction is $5,202 for single filers, $10,404 for married couples filing jointly, and $7,803 for heads of household. If you are 65 or older, you get an additional deduction amount on top of these figures.

You can claim the standard deduction or itemize deductions (mortgage interest, property taxes, charitable donations, and other may have access to expenses), but not both. Most people use the standard deduction because it is simpler and often results in a lower tax bill than itemizing.

Additional taxes you may owe

Beyond the standard income tax, California imposes a 1% Mental Health Tax on income over $1 million. This tax applies to high earners and is calculated separately from the regular brackets. If your income exceeds $1 million, you will owe this additional 1% on the amount above that threshold.

Self-employed people and business owners also owe self-employment tax to cover Social Security and Medicare, which is a federal obligation, not a state one. California does not have a separate self-employment income tax, but your net business earnings are subject to the regular state income tax brackets after you deduct business expenses.

When to file and pay taxes

California income tax returns are due on the same date as federal returns, typically April 15 of the following year. If you owe taxes, payment is due by that same date. If you expect to owe more than $500 in taxes, you may be required to make estimated tax payments throughout the year in four installments (usually April 15, June 15, September 15, and January 15).

If your employer withholds taxes from your paycheck, you may not owe anything when you file — or you may receive a refund if too much was withheld. Self-employed people and those with investment income typically need to make estimated payments because no employer is withholding on their behalf.

Tax credits that reduce what you owe

California offers several tax credits that directly reduce your tax bill dollar-for-dollar. The Earned Income Tax Credit (EITC) is available to lower-income working people and can result in a refund even if you owe no tax. The California Child Tax Credit provides up to $1,000 per child for families with income under certain thresholds. Other credits include the Dependent Parent Credit, the Renter's Credit, and credits for dependent care expenses.

Credits are different from deductions: a $1,000 deduction reduces your taxable income by $1,000, but a $1,000 credit reduces your tax bill by $1,000. This makes credits more valuable. You must meet specific income and family situation requirements to claim each credit, and you report them on your tax return.

Frequently Asked Questions

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

If you worked in California but moved out of state, you may still owe California tax on income you earned while you were a resident. Once you establish residency in another state and no longer work in California, you generally do not owe California tax. However, if you maintain a home in California or spend more than half the year there, the state may consider you a resident for tax purposes.

What is the difference between my tax bracket and my effective tax rate?

Your tax bracket is the highest rate you pay on your top dollar of income. Your effective tax rate is your total tax bill divided by your total income. Because California uses progressive brackets, your effective rate is always lower than your bracket rate. For example, someone in the 9.3% bracket might have an effective rate of 5.2% because they paid lower rates on the lower portions of their income.

Can I deduct federal income tax from my California return?

No. California does not allow you to deduct federal income tax paid. However, if you itemize deductions instead of taking the standard deduction, you can deduct state and local taxes (SALT) up to $10,000 total, which includes California income tax, property tax, and sales tax combined.

What happens if I underpay my estimated taxes?

If you do not pay enough in estimated taxes throughout the year, you may owe a penalty when you file your return. The penalty is based on how much you underpaid and how late the payment was. You can avoid the penalty by paying 90% of your current year tax or 100% of your prior year tax, whichever is smaller, through estimated payments or withholding.

Does California tax retirement income differently?

Social Security benefits are not taxed by California. Pension income, 401(k) withdrawals, and IRA distributions are taxed as regular income at your normal bracket rates. If you are 65 or older, you get a higher standard deduction, which reduces your taxable income and may lower your overall tax bill.