For the full state income tax comparison and relocation planning framework, see the State Taxes hub.
California has the highest state income tax in the nation — with rates from 1% to 13.3% across 9 brackets plus a millionaire surcharge.
California Tax Rates (Last Confirmed Brackets)
California’s brackets are indexed for inflation every year. The figures below reflect the last confirmed (2025) bracket structure; confirm exact 2026 thresholds at ftb.ca.gov, as they will be slightly higher.
Single Filers
| Taxable Income | Rate |
|---|---|
| $0 - $11,079 | 1% |
| $11,080 - $26,264 | 2% |
| $26,265 - $41,452 | 4% |
| $41,453 - $57,542 | 6% |
| $57,543 - $72,724 | 8% |
| $72,725 - $371,479 | 9.3% |
| $371,480 - $445,771 | 10.3% |
| $445,772 - $742,953 | 11.3% |
| $742,954 - $1,000,000 | 12.3% |
| Over $1,000,000 | 13.3% (includes 1% Mental Health Services Tax) |
Married Filing Jointly
Married bracket thresholds are approximately double the single-filer thresholds at each tier. Confirm with the Franchise Tax Board whether the $1 million Mental Health Services Tax threshold doubles for joint filers — published guidance is inconsistent on this point.
How Much Will I Pay in California Tax? (Approximate)
| Taxable Income | Single Tax (approx.) |
|---|---|
| $50,000 | ~$1,950 |
| $75,000 | ~$3,750 |
| $100,000 | ~$5,940 |
| $150,000 | ~$10,600 |
| $200,000 | ~$15,250 |
| $300,000 | ~$24,550 |
| $500,000 | ~$49,550 |
| $1,000,000 | ~$110,600 |
Approximate figures before credits, using the last confirmed bracket structure. Confirm exact current-year figures with a calculator using the official FTB tables.
California Standard Deduction
| Filing Status | Standard Deduction (approx., last confirmed) |
|---|---|
| Single | ~$5,706 |
| Married Filing Jointly | ~$11,412 |
| Married Filing Separately | ~$5,706 |
| Head of Household | ~$11,412 |
California’s standard deduction is much smaller than the federal deduction ($16,100 single / $32,200 married for 2026). Confirm the exact current-year California amount with the Franchise Tax Board, as it adjusts slightly each year.
California Exemption Credits
California allows nonrefundable personal and dependent exemption credits (not deductions). Confirm the current-year amounts with the Franchise Tax Board, as these are indexed annually and published figures vary by source.
California Mental Health Tax (Prop 63)
Income over $1 million (single filers) is also subject to an additional 1% Mental Health Services Tax, which is included in the 13.3% top rate (12.3% + 1%).
California Capital Gains Tax
California has no special capital gains rate. All capital gains are taxed as ordinary income, at the same brackets shown above — up to 13.3%. This makes California one of the most expensive states for high-income investors, compared with the federal top long-term capital gains rate of 20%.
SDI/State Disability Insurance
| Tax | Rate (2026) | Wage Base |
|---|---|---|
| SDI | 1.3% | None (cap eliminated effective January 1, 2024) |
SDI is automatically withheld from wages on all earnings, with no maximum.
California vs. Other High-Tax States
| State | Top Rate | Applies At |
|---|---|---|
| California | 13.3% | $1,000,000+ |
| New Jersey | 10.75% | $1,000,000+ |
| New York | 10.9% | $25,000,000+ |
| Oregon | 9.9% | confirm current threshold |
| Minnesota | 9.85% | $203,150+ (single) |
California has both the highest rate and the steepest progression. Confirm current thresholds for comparison states, as several adjust brackets annually.
Who Must File a California Tax Return?
Filing thresholds are based on gross income and adjusted gross income relative to the standard deduction and exemption credits, and are adjusted annually. Confirm the exact current-year filing thresholds at ftb.ca.gov rather than relying on a fixed dollar figure, since they change each year.
California Tax Deductions
Itemized Deductions Allowed
- Mortgage interest (with limits)
- Property taxes (state-specific limit)
- Charitable contributions
- Medical expenses (above 7.5% AGI)
- Casualty losses
Deductions NOT Allowed
- State/local income taxes paid (California does not allow a SALT-style deduction on the state return, unlike the federal SALT deduction)
- Investment interest expenses (limited)
California Tax Credits
| Credit | Amount |
|---|---|
| Child & Dependent Care | Up to 50% of federal credit |
| Renter’s Credit | $60 (single) / $120 (married) |
| Joint Custody Head of Household | 30% of tax liability |
| California Earned Income Tax Credit | Confirm current maximum (adjusted annually) |
CalEITC (California Earned Income Tax Credit)
CalEITC amounts and income limits are adjusted annually. Confirm the current-year maximum credit and income limit by number of qualifying children at the Franchise Tax Board’s CalEITC page, plus the related Young Child Tax Credit for qualifying families with a child under 6.
How to File California Taxes
| Method | Cost | Best For |
|---|---|---|
| CalFile (free) | $0 | Simple returns |
| FTB Free File | $0 | Confirm current income limit |
| Commercial software | $0-$100 | Complex returns |
| Tax professional | $150-$500+ | Business owners |
Filing deadline: April 15 (same as federal)
California Tax Strategies
1. Maximize Retirement Contributions
California taxes all ordinary income, so 401(k) and IRA contributions reduce your tax burden.
2. Consider Municipal Bonds
California municipal bonds are triple tax-free (federal, state, and AMT).
3. Charitable Giving
Charitable contributions are fully deductible on California returns.
4. Timing Capital Gains
If leaving California, realizing gains before establishing residency elsewhere can be costly.
5. Relocate (For High Earners)
Some high earners move to states like Texas, Florida, or Nevada to avoid the 13.3% top rate.
California Part-Year and Nonresident Rules
| Status | What’s Taxed |
|---|---|
| Full-year resident | All worldwide income |
| Part-year resident | Income while CA resident + CA source income |
| Nonresident | Only CA source income |
California aggressively pursues “residency audits” for high earners who claim to have moved.
California Tax Penalties
| Violation | Penalty |
|---|---|
| Late filing | 5% per month up to 25% |
| Late payment | 0.5% per month plus interest |
| Underpayment | Interest + possible penalty |
| Fraud | 75% of underpaid tax |
Bottom Line
California has the highest state income tax in the nation at 13.3% for income over $1 million. Most residents pay a mid-single-digit-to-9.3% effective rate on their income. The state also taxes capital gains as ordinary income. California’s standard deduction is small relative to the federal deduction, making itemization more common. For high earners, California taxes can add a double-digit percentage to their overall tax burden — a significant consideration for financial planning.
For a side-by-side comparison of every state’s income tax rates, see state income tax rates by state 2026. Federal income tax applies on top of state taxes — see 2026 federal income tax brackets to calculate your combined liability.
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