California's income tax brackets and rates for 2024

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 higher rates on the income that falls into each bracket. A single filer earning $20,000 pays a different rate than someone earning $200,000, and the brackets shift slightly each year for inflation.

For 2024, California's tax brackets for single filers start at 1% on income up to $10,099, then jump to 2% on income from $10,100 to $23,942. The rates continue climbing through brackets at 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 different bracket thresholds — roughly double the single filer amounts — but pay the same rates within each bracket.

These brackets change annually. The Franchise Tax Board, which administers California income tax, adjusts them each year based on inflation. If you earned the same dollar amount in 2023 and 2024, your tax bracket may have shifted slightly upward, meaning you might owe less tax on that same income.

Key Takeaways

  • California's income tax rates range from 1% to 13.3%, with higher rates applying only to income above certain thresholds, not your entire paycheck.
  • The state adjusts tax brackets every year for inflation, so the dollar amounts that trigger each rate change annually.
  • Married couples filing jointly and single filers have different bracket thresholds, but the tax rates themselves are the same.
  • Your actual tax bill depends on deductions, credits, and whether you have income from sources other than wages.
  • California also imposes a 1% Mental Health Tax on high earners — an additional tax on income over $1 million that started in 2024.

How the progressive tax system actually works

Many people misunderstand how tax brackets work. If you earn $50,000 as a single filer in California, you do not pay 6% on your entire income. Instead, you pay 1% on the first $10,099, then 2% on the next portion up to $23,942, then 4% on the remainder up to $50,000. Only the income that falls into each bracket gets taxed at that bracket's rate.

This means moving into a higher tax bracket does not reduce your take-home pay overall. If a raise pushes you from the 6% bracket into the 8% bracket, only the income above the threshold gets taxed at 8%. The income you earned before that threshold still gets taxed at the lower rates.

The 1% Mental Health Tax on high earners

Starting in 2024, California added a Mental Health Tax of 1% on income over $1 million. This is separate from the regular income tax brackets and applies to both single filers and married couples. If you earn $1.5 million, you pay the regular tax on all of it, plus an additional 1% on the $500,000 that exceeds $1 million.

This tax was created to fund mental health and homeless services. It applies to wages, business income, capital gains, and other forms of income. The threshold of $1 million is not adjusted annually for inflation, so it remains fixed at $1 million each year.

Deductions and credits that reduce what you owe

Your tax bill is not simply your income multiplied by your bracket rate. California allows deductions that reduce the income you are taxed on, and credits that reduce the tax itself. The standard deduction for 2024 is $5,202 for single filers and $10,404 for married couples filing jointly. If you take the standard deduction, you subtract that amount from your income before calculating tax.

Common credits include the Earned Income Tax Credit (EITC) for lower-income workers, the Child and Dependent Care Credit, and the California Earned Income Credit. These credits directly reduce the tax you owe, dollar for dollar. If a credit is larger than your tax bill, you may receive the difference as a refund.

Some people itemize deductions instead of taking the standard deduction — listing mortgage interest, property taxes, charitable donations, and other expenses. Itemizing makes sense only if your total itemized deductions exceed the standard deduction amount.

Self-employment and business income taxes

If you are self-employed or own a business, you pay California income tax on your net business income at the same rates as wage earners. However, you also owe self-employment tax to cover Social Security and Medicare, which is a federal obligation separate from California state tax.

Self-employed people can deduct business expenses — rent, supplies, equipment, vehicle mileage — before calculating their taxable income. You can also deduct half of your self-employment tax from your California taxable income. This reduces the amount subject to state tax rates.

If you expect to owe more than $500 in California tax for the year, you must make quarterly estimated tax payments. These are due in April, June, September, and January. Missing these payments can result in penalties and interest.

Capital gains and investment income

California taxes capital gains — profit from selling stocks, real estate, or other investments — as ordinary income at the same rates as wages. If you sell an investment for a $50,000 profit, that $50,000 is added to your other income and taxed according to the brackets.

Dividends and interest from investments are also taxed as ordinary income. There is no special lower rate for long-term capital gains in California, unlike the federal tax system. This means a long-term capital gain can push you into a higher bracket and be taxed at a higher rate than your wages.

Filing status and how it affects your tax

Your filing status — single, married filing jointly, married filing separately, head of household, or may have access to widow(er) — determines which tax brackets apply to you. Married couples filing jointly have the widest brackets, meaning more income fits into lower tax rates before hitting higher brackets. Single filers have narrower brackets, so the same income amount may be taxed at a higher rate.

Married couples can sometimes pay less total tax by filing jointly, but not always. If both spouses earn similar high incomes, filing separately might result in lower tax. The Franchise Tax Board provides worksheets to help you compare, or you can work with a tax preparer to model both scenarios.

Frequently Asked Questions

Does California tax retirement income and Social Security?

California does not tax Social Security benefits. Retirement income from pensions and 401(k) withdrawals is taxed as ordinary income at the regular rates. If you receive a pension, that amount is added to your other income and taxed according to the brackets.

What if I moved out of California during the year?

You owe California tax only on income earned while you were a resident. When you move, you must file a part-year resident return showing which months you lived in California and which months you lived elsewhere. Your tax is calculated based on the income earned during your California residency months.

Can I deduct federal income tax from my California taxes?

No. California does not allow a deduction for federal income tax paid. You can deduct state and local property taxes up to $10,000 combined, but not federal income tax.

What happens if I owe more tax than I can pay?

The Franchise Tax Board offers payment plans for unpaid tax. You can request an installment agreement, which lets you pay in monthly amounts. Interest and penalties continue to accrue, but a payment plan prevents additional enforcement action while you pay down the balance.

How do I know if I need to file a California tax return?

You must file if your income exceeds the filing threshold for your age and filing status. For 2024, a single person under 65 must file if they earned more than $5,202. The threshold is higher for married couples and for people over 65. Even if you do not owe tax, filing may get you a refund of taxes withheld from your paychecks.