California's income tax is progressive, meaning the rate you pay depends on how much you earn
California taxes income at rates that climb as your earnings increase. The state does not have a flat tax — instead, you move through tax brackets, and each bracket has its own rate. For the 2024 tax year, California's rates range from 1% on the lowest incomes to 13.3% on the highest. The 13.3% rate is the highest state income tax rate in the country.
Your actual tax bill depends on which bracket your total income falls into. If you earn $20,000 a year, you do not pay 13.3% on all of it — you pay 1% on the first portion, then higher rates only on income above certain thresholds. This is how progressive tax systems work.
Key Takeaways
- California's tax rates range from 1% to 13.3%, with rates increasing as income increases.
- Tax brackets change each year based on inflation, so the income thresholds that trigger each rate are different in 2024 than they were in 2023.
- You pay different rates on different portions of your income — the rate climbs as you earn more, not all at once.
- The 13.3% top rate applies only to income above a very high threshold, currently around $680,000 for single filers.
The 2024 California tax brackets for single filers
For single taxpayers in 2024, the brackets are:
| Income Range | Tax Rate |
|---|---|
| $0 to $10,099 | 1% |
| $10,100 to $23,942 | 2% |
| $23,943 to $37,788 | 4% |
| $37,789 to $52,455 | 6% |
| $52,456 to $66,295 | 8% |
| $66,296 to $340,328 | 9.3% |
| $340,329 to $408,362 | 10.3% |
| $408,363 to $680,773 | 11.3% |
| Over $680,773 | 13.3% |
These brackets apply to your taxable income, which is your total income minus deductions and exemptions. Most people do not pay tax on every dollar they earn — California allows a standard deduction that reduces your taxable income before the brackets apply.
Tax brackets for married couples and other filing statuses
Married couples filing jointly have different brackets than single filers. The income ranges are wider, which means you can earn more before moving into a higher bracket. For example, in 2024, the 9.3% bracket for married filing jointly starts at $66,296 and goes up to $680,656 — much higher than the single filer threshold.
California also has brackets for heads of household and married filing separately. Each filing status has its own set of thresholds. You can find the complete 2024 brackets for all filing statuses on the California Department of Tax and Fee Administration website.
How the brackets actually work in practice
Suppose you are a single filer in California earning $50,000 in 2024. You do not pay one rate on the whole amount. Instead, you pay:
- 1% on the first $10,099 = $101
- 2% on the next $13,843 ($23,942 minus $10,099) = $277
- 4% on the next $13,846 ($37,788 minus $23,942) = $554
- 6% on the remaining $12,212 ($50,000 minus $37,788) = $733
Your total tax is $1,665, which works out to an effective rate of about 3.3% — much lower than the 6% bracket you are in. This is why the progressive system matters: your marginal rate (the rate on your last dollar) is 6%, but your effective rate (what you actually pay on average) is lower.
The standard deduction reduces your taxable income
Before the tax brackets apply, California allows you to subtract a standard deduction from your income. For 2024, the standard deduction is $5,202 for single filers and $10,404 for married couples filing jointly. This means if you earn $50,000 as a single filer, your taxable income is actually $44,798, and the brackets apply to that lower number.
Some people have deductions larger than the standard amount — for example, if you own a home and pay mortgage interest, or if you have significant charitable donations. In those cases, you can itemize deductions instead of taking the standard deduction. You choose whichever gives you the larger deduction.
Tax brackets change every year
California adjusts tax brackets annually for inflation. The thresholds that define each bracket are different in 2024 than they were in 2023, and they will be different again in 2025. The state uses the Consumer Price Index to calculate the adjustment each year.
This means you should not assume last year's brackets apply to your current tax return. When you file, use the brackets for the year you are filing for. The California Department of Tax and Fee Administration publishes updated brackets by late fall of the previous year.
Additional taxes on high earners
California has imposed additional taxes on very high incomes in recent years. In 2024, there is a 1% Mental Health Tax on income over $1 million, which means high earners pay up to 14.3% total. This tax was set to expire but has been extended. Check the current year's rules, as these additional taxes can change.
There is also a Net Investment Income Tax of 3.8% that applies to certain investment income for high earners, though this is a federal tax, not a state tax.
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 based on where the income was earned, not where you live. You may be able to claim a credit on your home state's return to avoid double taxation.
What is the difference between my marginal rate and my effective rate?
Your marginal rate is the tax rate on your last dollar of income — the bracket you are currently in. Your effective rate is your total tax divided by your total income. Because of progressive brackets, your effective rate is always lower than your marginal rate. If you earn $50,000 and your marginal rate is 6%, your effective rate might be 3.3%.
Are Social Security benefits taxed in California?
No, California does not tax Social Security benefits. However, the federal government may tax them depending on your total income. California also does not tax certain retirement income, including distributions from IRAs and 401(k)s, though there are income limits.
Do I need to file a California tax return if I live in another state?
Only if you earned income in California during the year. If all your income came from out of state, you do not owe California tax and do not need to file a California return. However, if you worked in California for even part of the year, you must file.
How do I know which tax bracket I am in?
Add up your total income for the year, subtract your standard deduction or itemized deductions, and find that number in the tax bracket table for your filing status. The bracket your taxable income falls into is your marginal bracket. Your actual tax is calculated by applying each bracket's rate to the income within that bracket's range.