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 statutory brackets range from 1% to 12.3%, with an additional 1% Mental Health Services Tax above $1 million. Most middle-income Californians pay an effective state tax rate in the mid-single digits to roughly 8-9%. 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 $3,700–$3,900 in California state income tax (roughly 5–5.2% effective rate), before credits, using the last confirmed bracket structure — confirm exact current-year figures at ftb.ca.gov since brackets are inflation-indexed annually. This is in addition to federal income tax. California does not tax Social Security benefits or unemployment insurance.

California Income Tax Brackets — Single Filers (Last Confirmed)

California’s brackets adjust for inflation every year. The table below reflects the last confirmed (2025) thresholds; confirm exact 2026 figures at ftb.ca.gov.

Taxable Income Tax 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% (12.3% + 1% Mental Health Services Tax)

California Income Tax Brackets — 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, as published guidance is inconsistent on this point.

California Effective Tax Rate — Worked Examples (Approximate)

Single filer earning $60,000:

  • Standard deduction: ~−$5,706
  • Taxable income: ~$54,294
  • Estimated California tax: ~$1,793
  • Effective state rate: ~3.0%

Single filer earning $100,000:

  • Standard deduction: ~−$5,706
  • Taxable income: ~$94,294
  • Estimated California tax: ~$5,208
  • Effective state rate: ~5.2%

Married couple earning $200,000:

  • Standard deduction: ~−$11,412
  • Taxable income: ~$188,588
  • Estimated California tax: confirm using current-year MFJ brackets
  • Effective state rate: approximately 6–7%

These figures exclude SDI and credits, and use the last confirmed bracket structure. Confirm exact amounts using the official FTB tax calculator.

California vs. Federal Standard Deduction (2026)

California (approx., last confirmed) Federal (2026)
Single ~$5,706 $16,100
Married Filing Jointly ~$11,412 $32,200
Head of Household ~$11,412 $24,150

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) — confirm current maximum credit and income limits, adjusted annually
  • Young Child Tax Credit (YCTC) — confirm current amount for qualifying families with a 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) 1.3% of all wages (no cap) Employee
UI (Unemployment Insurance) Varies by employer experience rating, on first $7,000 of wages 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 a non-work-related illness, injury, pregnancy, or if you need to care for a family member, SDI provides a percentage of your wages (up to a maximum) for a limited period. Paid Family Leave (PFL) through SDI provides several 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 York 10.9% NYC adds separate local tax
New Jersey 10.75%
Oregon 9.9%
Minnesota 9.85%
Texas 0% No state income tax
Florida 0% No state income tax
Washington 0% No state income tax (separate capital gains excise tax on high earners)
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 (confirm current income eligibility limits)
  • 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.

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