California has multiple tax rates depending on what you're taxed on

California taxes income, sales, and property — each at different rates. Your income tax rate depends on how much you earn and your filing status. Sales tax varies by county and city, ranging from 7.25% to over 10%. Property tax is a flat 1% of assessed value statewide, plus local additions. This guide explains what each rate is and who pays it.

Understanding these rates matters because they affect your paycheck, what you spend at checkout, and your annual property tax bill. Each tax works differently, and the rate you pay depends on specific details about your income, location, or property. This article breaks down how each one works and where to find your exact rate.

Key Takeaways

  • California income tax ranges from 1% to 13.3% depending on your income bracket and filing status, with the highest rate applying only to income over $680,000 for single filers in 2024.
  • Sales tax starts at 7.25% statewide but reaches 10.75% or higher in some counties because cities and districts add their own local rates on top.
  • Property tax is 1% of your home's assessed value plus voter-approved local bonds and assessments, totaling roughly 1.1% to 1.5% in most areas.
  • You can find your exact sales tax rate by entering your address on the California Department of Tax and Fee Administration website, since it varies by neighborhood.

California income tax brackets and rates

California income tax is progressive, meaning the rate increases as your income increases. You do not pay one rate on all your income — you pay different rates on different portions. For 2024, the rates range from 1% on the lowest bracket to 13.3% on income above $680,000 for single filers. The brackets are adjusted each year for inflation, so the dollar amounts change annually.

Your filing status matters. A married couple filing jointly has wider brackets than a single filer, so the same dollar amount of income is taxed at a lower rate. For example, in 2024, a single person pays 9.3% on income between $63,398 and $317,996, but a married couple filing jointly pays 9.3% on income between $126,796 and $635,992. The state publishes updated brackets every January. California also taxes capital gains — money from selling investments — at your regular income tax rate if you held the investment for less than one year. Long-term capital gains (held over one year) were taxed at regular rates through 2024, though this has been subject to legal challenge.

Sales tax rates by location

California's base sales tax is 7.25%, but your actual rate depends on where you live. Counties and cities add their own local sales taxes on top of the state rate. Some areas reach 10.75% or higher. For example, Los Angeles County's rate is 9.5%, while San Francisco's is 8.625%. A county next door might be 7.75%. The rate can even change within a city if you cross into a different tax district.

You pay sales tax on most goods and some services. Groceries, prescription medications, and medical devices are generally exempt. Prepared food, alcohol, and gasoline are taxed. Services like haircuts, repairs, and professional fees are usually not taxed unless they are bundled with a taxable product. The California Department of Tax and Fee Administration maintains a detailed list of what is and is not taxable. To find your exact sales tax rate, enter your address on the CDTFA's website at onlineservices.cdtfa.ca.gov. This tool shows you the combined state, county, and local rate for your specific location. If you are buying online from out of state, California requires the seller to collect sales tax if they have nexus (a business presence) in the state, which most large retailers now do.

Property tax assessment and rates

Property tax in California is based on Proposition 13, passed in 1978. Your home is assessed at market value when you buy it, and the assessed value increases by no more than 2% per year, even if the home's actual value rises much faster. You pay 1% of the assessed value to the county, plus any voter-approved local bonds and assessments. This means your property tax bill does not automatically jump when your home appreciates.

When you sell your home, it is reassessed at the new sale price, and your tax rate resets. A home that sold for $500,000 might be assessed at $500,000, while an identical home next door that was purchased 20 years ago might be assessed at $200,000. Both pay 1% of their assessed value, so the newer owner pays significantly more in property tax. Your property tax bill also includes local assessments and bonds approved by voters in your district. These might fund schools, fire departments, water systems, or infrastructure. The total effective property tax rate in most California counties ranges from 1.1% to 1.5% of assessed value, though some areas with many local bonds run higher. You can see your assessed value and tax breakdown on your county assessor's website.

Other California taxes you may encounter

California has a vehicle license fee based on your vehicle's value, paid annually when you register. The fee is 0.65% of the vehicle's market value, though you receive a credit for the first year. A $30,000 car costs roughly $195 per year after the first-year credit. This is separate from registration fees and smog check costs.

Gasoline and diesel fuel have excise taxes in addition to sales tax. As of 2024, the state excise tax is 68.6 cents per gallon of gasoline and 79.6 cents per gallon of diesel. These rates change periodically based on formulas tied to inflation and road maintenance costs. You pay this tax at the pump, included in the price per gallon. If you own a business, you may owe California's gross receipts tax (now called the Net Gross Receipts Tax in some contexts), though most small businesses are exempt. You may also owe self-employment tax to the federal government, which is separate from California state tax. Rental income, investment income, and business income are all subject to California income tax at your marginal rate.

How to find your specific tax rates

For income tax, use the Franchise Tax Board's tax calculator or consult the current year's tax tables on ftb.ca.gov. You can also use a tax software program that pulls California rates automatically. If you are self-employed or have complex income, a tax professional can help you understand your bracket and plan for quarterly payments.

For sales tax, use the CDTFA's online rate lookup tool at onlineservices.cdtfa.ca.gov/onlineservices/. Enter your street address and it will show you the exact combined rate for your location, broken down by state, county, and local portions. This is the most accurate way to know what you will pay. For property tax, log into your county assessor's website using your parcel number or address. You can see your assessed value, the tax rate applied, and any local assessments or bonds. Your county tax collector's office can also mail you a property tax statement showing the breakdown. If you believe your assessment is too high, most counties allow you to file an appeal within 30 days of receiving your bill.

Frequently Asked Questions

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 marginal rate. Military pensions receive a partial exemption — you can exclude up to $20,000 of military retirement pay from California income tax if you meet certain conditions.

What is the difference between assessed value and market value for property tax?

Market value is what your home would sell for today. Assessed value is what the county uses to calculate your property tax bill. Under Proposition 13, your assessed value is locked at your purchase price and increases by maximum 2% annually, even if your home's market value doubles. When you sell, the assessed value resets to the new sale price.

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

Yes. California taxes income earned in the state regardless of where you live. If you work remotely for a California company but live in another state, you owe California tax on that income. You may also owe tax to your home state, but you can usually claim a credit on one state's return for taxes paid to the other.

Are there any income tax deductions specific to California?

California allows most federal deductions, but some differ. For example, California does not allow a deduction for state income tax paid, though you can deduct federal income tax. You can deduct mortgage interest, charitable donations, and medical expenses if you itemize. The standard deduction for 2024 is $5,202 for single filers and $10,404 for married filing jointly.

How often do California tax rates change?

Income tax brackets adjust annually for inflation, usually in January. Sales tax rates can change when a city or county passes a new local measure, which requires voter approval. Property tax rates are set by county and do not change unless voters approve a new bond or assessment. Check the Franchise Tax Board and your county assessor's office in January for annual updates.