Does California have a standard deduction?

Yes. California's standard deduction is $5,540 for single filers and $11,080 for married filing jointly in 2026. This is significantly lower than the federal standard deduction ($15,000 single / $30,000 married). Many California taxpayers choose to itemize deductions on their state return even if they take the federal standard deduction, especially homeowners with mortgage interest and property taxes exceeding the California standard deduction.

What is the California SDI tax?

California State Disability Insurance (SDI) is a payroll tax withheld from employee wages. In 2026, the SDI rate is 0.9% on all wages — there is no longer a wage base cap after recent legislation changes. SDI provides short-term disability benefits and Paid Family Leave (PFL) benefits of up to 8 weeks. The California Employment Development Department (EDD) administers SDI.

Who has to file a California state tax return?

You must file a California state tax return if: your gross income exceeds the California filing threshold for your filing status, you have California-source income (even if you live out of state), or you want to claim a California tax refund. For 2026, single filers under 65 must file if gross income exceeds $17,693. Married filing jointly must file if income exceeds $35,346. California requires you to file even if you owe no tax to potentially claim refunds or credits.

Is Social Security taxed in California?

No. California does not tax Social Security benefits — unlike the federal government, which may tax up to 85% of Social Security benefits for higher-income recipients. California also does not tax unemployment insurance benefits, making it more favorable for retirees and unemployed workers compared to many other states on those specific income types.

California State Income Tax 2026 — Rates, Brackets, and What You Owe

Q: What is the California state income tax rate in 2026?

California has nine income tax brackets ranging from 1% to 13.3% in 2026. The highest rate of 13.3% applies to taxable income above $1 million for single filers and $2 million for married filing jointly — this is the highest state income tax rate in the United States. Most middle-income earners pay effective rates of 4–7% in California. California also imposes a 1% Mental Health Services Tax on income above $1 million, which is included in the 13.3% top rate calculation.

California has the highest state income tax rate in the United States at 13.3% for income over $1 million. For 2026, California’s nine tax brackets range from 1% to 13.3%. Most middle-income Californians pay an effective state tax rate of 4–8%. California’s Franchise Tax Board (FTB) administers state income taxes, with a filing deadline of April 15 (or October 15 with extension).

Quick answer: A single California resident earning $75,000 in 2026 pays approximately $3,800–$4,200 in California state income tax (5.1–5.6% effective rate), before credits. This is in addition to federal income tax. California does not tax Social Security benefits or unemployment insurance.

2026 California Income Tax Brackets — Single Filers

Taxable Income	Tax Rate	Tax Owed on This Bracket
$0 – $10,756	1%	Up to $108
$10,757 – $25,499	2%	Up to $295
$25,500 – $40,245	4%	Up to $590
$40,246 – $55,866	6%	Up to $937
$55,867 – $70,606	8%	Up to $1,179
$70,607 – $360,659	9.3%	Up to $26,966
$360,660 – $432,787	10.3%	Up to $7,431
$432,788 – $721,314	11.3%	Up to $32,587
$721,315 – $1,000,000	12.3%	Up to $34,340
Over $1,000,000	13.3%	13.3% on all income above $1M

2026 California Income Tax Brackets — Married Filing Jointly

Taxable Income	Tax Rate
$0 – $21,512	1%
$21,513 – $50,998	2%
$50,999 – $80,490	4%
$80,491 – $111,732	6%
$111,733 – $141,212	8%
$141,213 – $721,318	9.3%
$721,319 – $865,574	10.3%
$865,575 – $1,442,628	11.3%
$1,442,629 – $2,000,000	12.3%
Over $2,000,000	13.3%

Brackets are indexed for inflation annually. These are the 2025/2026 approximate brackets — confirm with the California Franchise Tax Board for exact 2026 figures.

California Effective Tax Rate — Worked Examples

Single filer earning $60,000:

Standard deduction: −$5,540
Taxable income: $54,460
Estimated California tax: ~$2,420
Effective state rate: ~4.0%

Single filer earning $100,000:

Standard deduction: −$5,540
Taxable income: $94,460
Estimated California tax: ~$5,410
Effective state rate: ~5.4%

Married couple earning $200,000:

Standard deduction: −$11,080
Taxable income: $188,920
Estimated California tax: ~$13,700
Effective state rate: ~6.9%

California vs. Federal Standard Deduction (2026)

	California	Federal
Single	$5,540	$15,000
Married Filing Jointly	$11,080	$30,000
Head of Household	$11,080	$22,500

California’s much lower standard deduction means more California filers itemize deductions on the state return — especially homeowners with significant mortgage interest and property taxes.

California State Tax Deductions and Credits

Key California deductions:

Mortgage interest — deductible (with limits matching federal AMT rules)
California property taxes — deductible when itemizing
Charitable contributions — deductible
Medical expenses — deductible to extent exceeding 7.5% of AGI

Key California tax credits:

California EITC (CalEITC) — up to $3,529 for low-income workers with children
Young Child Tax Credit (YCTC) — up to $1,175 per child under 6
Child and Dependent Care Expenses Credit — percentage of federal credit
Renter’s Credit — $60 single / $120 married for qualifying low-income renters

California SDI and Other Payroll Taxes

Tax	2026 Rate	Who Pays
State Disability Insurance (SDI)	0.9% of all wages (no cap)	Employee
UI (Unemployment Insurance)	1.5–6.2% of first $7,000	Employer only
ETT (Employment Training Tax)	0.1% of first $7,000	Employer only
Personal Income Tax (PIT) withholding	Varies	Employee

SDI benefits: If you are unable to work due to non-work-related illness, injury, pregnancy, or if you need to care for a family member, SDI provides 60–70% of your wages (up to a maximum) for up to 52 weeks. Paid Family Leave (PFL) through SDI provides 8 weeks of benefits.

Income California Does NOT Tax

Social Security benefits
Unemployment insurance benefits
Military pay for active duty outside California
Workers’ compensation benefits

California vs. Other States — Tax Comparison

State	Top Income Tax Rate	Notes
California	13.3%	Highest in US
Hawaii	11.0%
New Jersey	10.75%
Oregon	9.9%
Minnesota	9.85%
New York	10.9% (NYC + state)
Texas	0%	No state income tax
Florida	0%	No state income tax
Washington	0%	No state income tax
Nevada	0%	No state income tax

How to File California State Taxes

Deadline: April 15, 2026 (same as federal) Extension: Automatic 6-month extension to October 15, 2026 (request via FTB.ca.gov)

How to file:

California Tax File (CalFile) — free online filing for qualifying California residents (income under $125,000 single / $250,000 married)
Free File — via tax software if income qualifies
Tax software — TurboTax, H&R Block, TaxAct all support California state filing
Paper form — California Form 540 (individual) or Form 540NR (nonresidents/part-year)

California FTB: Franchise Tax Board — ftb.ca.gov — handles all state income tax administration. The FTB has its own audit process separate from IRS audits.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy