California's tax rates depend on your income and filing status
California has a progressive income tax system, which means the tax rate increases as your income increases. You do not pay one flat rate on all your income — instead, you pay different rates on different portions of it. The state's tax brackets change each year based on inflation.
For the 2024 tax year, California's rates range from 1% on the lowest income bracket to 13.3% on the highest. The exact amount you owe depends on where your total income falls within these brackets and whether you file as single, married filing jointly, head of household, or another status.
California also taxes long-term capital gains, short-term capital gains, and certain other income types at ordinary income rates, unlike some other states. This means investment income is taxed the same way as wages.
Key Takeaways
- California's income tax rates range from 1% to 13.3%, with rates increasing as income increases.
- Tax brackets and rates change annually, so the exact percentage you owe in 2024 differs from 2023 or 2025.
- Your filing status (single, married filing jointly, head of household) determines which bracket your income falls into.
- California taxes investment income and capital gains at the same rates as wages, unlike federal tax treatment.
- You can reduce your tax liability through deductions, credits, and retirement account contributions.
2024 California tax brackets for each filing status
The brackets below show the income ranges and corresponding tax rates for 2024. These thresholds shift upward each year. If your income falls within a bracket, you pay that rate only on the portion of income within that bracket — not on your entire income.
| Filing Status | Income Range | Tax Rate |
|---|---|---|
| Single | $0 to $10,099 | 1% |
| Single | $10,100 to $23,942 | 2% |
| Single | $23,943 to $37,788 | 4% |
| Single | $37,789 to $52,455 | 6% |
| Single | $52,456 to $66,295 | 8% |
| Single | $66,296 to $340,328 | 9.3% |
| Single | $340,329 to $408,362 | 10.3% |
| Single | $408,363 to $680,656 | 11.3% |
| Single | $680,657 and above | 12.3% |
Married couples filing jointly have higher income thresholds for each bracket. Head of household filers fall between single and married filing jointly. The Franchise Tax Board publishes updated brackets each year on its website.
California also imposes a 1% Mental Health Tax on income over $1 million, which applies to all filing statuses. This tax was introduced in 2021 and is in addition to the regular income tax rates shown above.
How to calculate what you owe
To estimate your California income tax, identify your filing status and total income, then find the bracket that contains your income. Multiply the portion of income within each bracket by that bracket's rate, then add the results together.
For example, a single filer with $50,000 in income would owe: 1% on the first $10,099 ($100.99), plus 2% on income from $10,100 to $23,942 ($279.68), plus 4% on income from $23,943 to $37,788 ($551.80), plus 6% on income from $37,789 to $50,000 ($734.66). The total is approximately $1,667 before any deductions or credits.
This is a rough estimate only. Your actual tax liability depends on deductions you claim, tax credits you receive, and other adjustments. The Franchise Tax Board's website has a tax calculator tool that can give you a more precise figure based on your specific situation.
Deductions and credits that lower your tax bill
California allows you to claim either the standard deduction or itemized deductions, whichever is larger. The standard deduction for 2024 is $5,202 for single filers and $10,404 for married couples filing jointly. Itemized deductions include mortgage interest, property taxes, charitable donations, and medical expenses above a certain threshold.
Tax credits directly reduce the amount of tax you owe, dollar for dollar. California offers credits for child and dependent care, earned income (similar to the federal EITC), education expenses, and other situations. Unlike deductions, credits are not based on your income level — they are available to anyone who meets the specific requirements.
Contributions to traditional retirement accounts like 401(k)s and IRAs can lower your taxable income. Contributions to Roth accounts do not reduce your current-year tax but grow tax-free. If you are self-employed, you can deduct business expenses and half of your self-employment tax.
Who must file a California tax return
You must file a California return if your income exceeds the filing threshold for your age and filing status. For 2024, most people under 65 must file if they have more than $5,202 in income (the standard deduction amount). People 65 and older have a higher threshold of $6,577.
You must also file if you had California income tax withheld from your paychecks, even if your income is below the threshold. Filing allows you to claim a refund of any overpaid tax. Additionally, if you received certain credits like the California Earned Income Tax Credit, you must file to claim them.
Nonresidents and part-year residents have different filing requirements based on the income they earned in California. If you moved to or from California during the year, you may need to file even if your total income is below the threshold.
Tax withholding and estimated payments
If you are an employee, your employer withholds California income tax from your paycheck based on the W-4 form you complete. The amount withheld depends on your income, filing status, and the number of dependents you claim. You can adjust your withholding at any time by submitting a new W-4 to your employer.
If you are self-employed, a contractor, or have income not subject to withholding, you may need to make quarterly estimated tax payments to California. These payments are due on April 15, June 15, September 15, and January 15. Underpaying estimated taxes can result in penalties and interest.
If too much tax is withheld during the year, you receive a refund when you file your return. If too little is withheld, you owe the difference. Adjusting your withholding or estimated payments throughout the year can help you avoid a large refund or a large bill at tax time.
Special taxes and additional considerations
California imposes a Net Investment Income Tax of 3.8% on certain high-income earners. This tax applies to net investment income (interest, dividends, capital gains) for single filers with income over $250,000 and married couples filing jointly with income over $500,000.
If you sell a home, you may owe capital gains tax on the profit. California does not have a capital gains exclusion like the federal government does, so most home sale profits are taxable. However, you can deduct certain selling expenses and improvements you made to the home.
Residents who work in other states or countries may be able to claim a credit for taxes paid to those jurisdictions, reducing their California tax liability. If you moved out of California during the year, you may may have access to for a part-year resident return, which taxes only the income you earned while living in the state.
Frequently Asked Questions
What is the difference between California and federal income tax rates?
California's top rate is 13.3%, while the federal top rate is 37%. You pay both taxes — they are separate. Your federal return is filed with the IRS, and your California return is filed with the Franchise Tax Board. The taxes do not offset each other, though you can deduct state income taxes paid on your federal return (subject to limits).
Do I have to pay California income tax if I moved out of state?
If you moved out of California during the tax year, you file a part-year resident return and pay tax only on income earned while you lived in California. If you moved out and have no California-source income, you do not owe California tax. However, you must file a return to report your part-year resident status if you had any income while living in the state.
Can I reduce my California taxes by contributing to a retirement account?
Yes. Contributions to traditional 401(k)s, IRAs, and other pre-tax retirement accounts reduce your taxable income for California purposes. Contributions to Roth accounts do not lower your current-year tax but grow tax-free. The contribution limits and rules are set by federal law, so check the IRS website for current limits.
What happens if I do not file a California tax return?
If you owe tax and do not file, the Franchise Tax Board can assess penalties and interest on the unpaid amount. If you are owed a refund, you have four years to claim it before the refund is forfeited. Filing even if you do not owe can help you claim credits and avoid penalties.
Are Social Security benefits taxed in California?
No. California does not tax Social Security benefits, even if they are taxable at the federal level. However, other retirement income like pensions, distributions from retirement accounts, and investment income are taxable in California unless a specific exemption applies.