California's tax brackets and rates for 2024

California taxes income on a sliding scale. The state has 13 tax brackets, ranging from 1% on the lowest incomes to 13.3% on the highest. Your rate depends on how much you earn and your filing status — single, married filing jointly, head of household, or married filing separately.

The brackets themselves change each year because California adjusts them for inflation. For 2024, a single filer pays 1% on income up to $10,099, then the rate steps up as your income increases. At $680,000 and above, you hit the top rate of 13.3%. Married couples filing jointly have higher income thresholds before each bracket kicks in, so the same dollar amount of income may be taxed at a lower rate than it would be for a single filer.

California also adds a 1% Mental Health Tax on income over $1 million. This is separate from the regular brackets and applies to high earners regardless of filing status.

Key Takeaways

  • California has 13 tax brackets ranging from 1% to 13.3%, and which bracket you fall into depends on your total income and filing status.
  • Tax brackets shift each year due to inflation adjustments, so the income thresholds that trigger each rate are different in 2024 than they were in 2023.
  • Married couples filing jointly pay tax on higher income thresholds than single filers, meaning the same income may be taxed at a lower rate for couples.
  • High earners pay an additional 1% Mental Health Tax on income exceeding $1 million, on top of the regular state income tax.
  • Your actual tax bill also depends on deductions and credits you may be may have access to to, which reduce the income that gets taxed.

How to find your tax bracket

Start by calculating your total income for the year. This includes wages from employment, self-employment income, interest, dividends, rental income, and other sources. Then subtract any above-the-line deductions you may have access to for — these are deductions you can take whether or not you itemize.

Once you have your adjusted income, find your filing status and locate the tax bracket table for 2024. The Franchise Tax Board (FTB), which administers California income tax, publishes these tables on its website. Find the row that matches your income, and that row shows you the tax rate that applies to your top dollar of income. You do not pay that rate on all your income — only on the portion that falls within that bracket.

For example, if you are single and earn $50,000, you do not pay 9.3% on all $50,000. Instead, you pay 1% on the first $10,099, then 2% on the next portion, then 4%, and so on, until you reach $50,000. The FTB tax tables do the math for you, so you can look up your income and read off the total tax owed before credits.

Deductions and credits that lower your bill

California allows you to reduce your taxable income through deductions. You can either take the standard deduction — a flat amount based on your filing status — or itemize deductions if your may be able to access expenses are higher. For 2024, the standard deduction for a single filer is $5,202, and for married filing jointly it is $10,404. These amounts also adjust yearly for inflation.

Common itemized deductions include mortgage interest, property taxes (capped at $10,000 total for state and local taxes), charitable donations, and medical expenses above a certain threshold. If your itemized deductions exceed the standard deduction, you benefit from itemizing.

After you calculate your tax using the brackets, you can then subtract tax credits. Credits are more valuable than deductions because they reduce your tax dollar-for-dollar rather than reducing your income. California offers credits for dependent children, earned income (if you have low to moderate income), education expenses, and other situations. The FTB website lists all available credits and the income limits for each.

Self-employment income and estimated taxes

If you are self-employed, you owe California income tax on your net business income using the same brackets as W-2 employees. However, you also owe self-employment tax to cover Social Security and Medicare, which is a federal obligation. California does not have a separate self-employment tax, but you must account for the federal self-employment tax when calculating what you owe overall.

Self-employed people and others with income not subject to withholding must make estimated tax payments to California four times a year. These are quarterly payments due in April, June, September, and January. If you do not pay enough through withholding and estimated payments combined, you may owe a penalty when you file your return, even if you ultimately get a refund.

To calculate estimated payments, you forecast your income for the year, apply the tax brackets and credits, and divide the result into four equal payments. If your income is uneven across quarters, you can pay more in high-income quarters and less in low-income quarters. The FTB provides a worksheet to help with this calculation.

Special taxes and add-ons

Beyond the regular income tax brackets, California has a few additional taxes that apply to specific types of income or high earners. The 1% Mental Health Tax applies to income over $1 million and funds mental health and substance use services. This is calculated separately and added to your regular tax bill.

California also taxes capital gains — profits from selling investments — as ordinary income. There is no separate capital gains tax rate; gains are added to your other income and taxed using the same brackets. This means a large capital gain can push you into a higher bracket for the year.

Certain types of income are exempt from California tax. These include federal Social Security benefits (though some high-income filers may have to report them), workers' compensation, and certain disability payments. Interest from municipal bonds issued by California or other states is also tax-free in California.

How withholding works and what to do if too much or too little is taken

If you are a W-2 employee, your employer withholds California income tax from each paycheck based on the form you complete — the CA Form W-4. This withholding is an estimate meant to cover your annual tax liability. At the end of the year, when you file your return, the FTB compares what was withheld to what you actually owe. If too much was withheld, you get a refund. If too little was withheld, you owe the difference.

You can adjust your withholding by submitting a new CA Form W-4 to your employer. If you expect to owe money at tax time, you can increase your withholding so more is taken from each check. If you expect a large refund, you can decrease your withholding to take home more pay during the year. Changes take effect on the next paycheck after your employer processes the form.

Refunds are typically issued within 30 days of the FTB processing your return if you file electronically and request direct deposit. Paper returns take longer. You can check the status of your refund on the FTB website by entering your Social Security number and the amount of your refund.

Filing deadlines and penalties for late payment

California income tax returns are due on the same date as federal returns: April 15 of the following year, or the next business day if April 15 falls on a weekend or holiday. If you cannot file by that date, you can request an extension, which gives you until October 15 to file. An extension to file does not extend the time to pay; taxes owed are still due by April 15, and interest accrues on any unpaid balance.

If you file late without an extension, the FTB charges a penalty. The penalty is usually 5% of the unpaid tax for each month or part of a month that the return is late, up to 25%. If you owe tax and do not pay by the deadline, interest accrues at a rate set quarterly by the FTB — currently around 8% per year, though this changes. Interest compounds daily.

If you cannot pay in full by April 15, you can set up a payment plan with the FTB. Short-term plans (up to 120 days) have no setup fee. Longer-term installment agreements charge a fee based on how you set up the plan. The FTB website has a payment plan calculator and instructions for setting one up online.

Frequently Asked Questions

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

Yes. California taxes you on income earned in the state regardless of where you live. If you live in another state and work in California, you owe California tax on your California wages. You may also owe tax to your home state, though most states offer a credit for taxes paid to other states to avoid double taxation.

What is the difference between California's tax rate and the federal tax rate?

California and the federal government have separate tax systems with different brackets, rates, and rules. California's top rate is 13.3%, while the federal top rate is 37%. You calculate and pay each tax separately. Your federal return does not affect your California return, though some deductions and credits differ between the two systems.

Can I deduct federal income tax from my California taxes?

No. California does not allow you to deduct federal income tax paid. However, you can deduct state and local taxes (SALT) up to $10,000 total if you itemize deductions. This $10,000 cap applies to the combined total of state income tax, property tax, and sales tax — you cannot deduct more than $10,000 even if you paid more.

What happens if I move out of California mid-year?

You owe California tax only on income earned while you were a resident. Once you establish residency in another state, California taxes only income from California sources. You will file a part-year resident return for the year you moved, reporting income by the state where it was earned. Your new state may also require a return for the portion of the year you lived there.

How do I know if I have to file a California 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 have more than $5,202 in income (the standard deduction amount). The threshold is higher if you are 65 or older or if you are married. Even if you do not meet the threshold, filing may be worth it if you paid taxes through withholding or are may have access to to refundable credits.