California State Income Tax: 2025 Rates, Brackets and How to Calculate Yours

California state income tax uses nine progressive brackets that run from 1% to 12.3%. People with taxable income over $1 million pay an extra 1% on the part above that line, which makes the top marginal rate 13.3%. The table below shows the 2025 tax year brackets that you use on a return filed in 2026.

Key takeaways

• California has nine tax brackets, from 1% to 12.3%, and a 1% surcharge on taxable income above $1 million.
• The 2025 standard deduction is $5,706 for single filers and $11,412 for joint filers. It rises to $5,900 and $11,800 for 2026.
• California taxes capital gains as ordinary income and does not tax Social Security benefits.
• Most workers pay far less than the top rate, because only the income in each bracket faces that bracket’s rate.
• California does not copy the federal deductions for overtime and tips.
• Residents also pay state disability insurance through payroll withholding.

2025 California income tax brackets

These rates apply to California taxable income, which is your income after adjustments and the standard or itemized deduction. They are the figures the Franchise Tax Board (FTB) published for the 2025 tax year.

Head of household filers use a separate schedule. The FTB adjusts bracket thresholds every year for inflation. California’s measure rose 3.0% for 2025 and 3.4% for 2026, so the 2026 thresholds are somewhat higher. The rates themselves do not change.

The 1% surcharge on income over $1 million

California adds a 1% tax on taxable income above $1,000,000. Voters created it in 2004 as the Mental Health Services Tax. Following Proposition 1, the state now calls it the Behavioral Health Services Tax. Only the dollars above $1 million face the extra 1%. A taxpayer with $1.2 million in taxable income pays the surcharge on $200,000, not on the whole amount. As a result, the top combined rate is 13.3%, the highest state rate in the country.

Standard deduction and credits

California’s standard deduction is far smaller than the federal one. For 2026, the federal amount is $16,100 for single filers and $32,200 for joint filers. Consequently, a Californian’s state taxable income is usually higher than the federal figure. Many taxpayers find that itemizing makes sense on the state return even when they take the federal standard deduction. You choose separately on each return.

A worked example

Consider a single filer with $85,000 of California taxable income in 2025. Each slice of income faces its own rate.

The total tax before credits is $4,343.64. The personal exemption credit of $153 trims it further. That works out to an effective rate near 5.1% on taxable income, not the 9.3% marginal rate that the last dollars face. This is the single most common misunderstanding about brackets. Moving into a higher bracket never reduces your take-home pay on the income you already earned.

What California taxes and does not tax

On overtime, the FTB has said the federal change took effect after California’s conformity date, so the state does not follow it. Read our no tax on overtime guide for the federal side.

Payroll withholding and disability insurance

Your employer withholds California income tax from each paycheck based on your Form DE 4. The employer also withholds State Disability Insurance (SDI). SDI has no wage cap, so high earners pay it on all wages. Self-employed people do not pay SDI unless they opt into coverage. Federal Social Security and Medicare taxes come on top of both.

Workers at the lowest end of the pay scale often pay little income tax. A worker at the state minimum wage should look at our California minimum wage 2026 guide for the pay rules.

How California compares with states that have no income tax

A worker with $90,000 of taxable income pays several thousand dollars of California tax. In Florida or Texas, the state bill is zero. However, California residents get a different mix of public services, and housing costs dominate budgets everywhere on the coast. If you are weighing a move, review the nine states with no state tax and our explainer on whether Florida has a state income tax.

Filing, deadlines and refunds

• The filing deadline is usually April 15 for the prior tax year.
• You file Form 540 as a resident, or Form 540NR as a part-year or nonresident.
• If you owe more than a small amount, you may need to make quarterly estimated payments.
• E-file with direct deposit for the fastest refund.
• Track your refund with our state tax refund status guide.

Residency drives the bill. California taxes residents on worldwide income, and it taxes nonresidents on California-source income. If you moved in or out during the year, you file as a part-year resident and prorate. Keep proof of your move date, such as a lease, a utility bill and a new driver license.

Planning ideas for California taxpayers

Several moves can lower a California bill without risk. First, compare the standard deduction with itemizing on the state return. Mortgage interest, property tax and charitable gifts can easily exceed $5,706 or $11,412. Second, remember that a retirement plan contribution lowers taxable income on both returns. Third, bunch deductible items into one year if that pushes you over the itemizing line. Additionally, couples should test joint versus separate filing, since the bracket widths for joint filers are exactly double the single widths, which means the choice rarely changes the rate but can change credits.

High earners need a different plan. Because the 1% surcharge starts at $1 million of taxable income, timing a large sale of stock, a business or a property can matter. Spreading gains across years may keep part of the income out of the top tier. Ask a California tax professional before you act, as residency rules and timing rules are strict.

Common mistakes to avoid

• Applying your top bracket rate to all of your income.
• Using the federal standard deduction on the California return.
• Forgetting the 1% surcharge once taxable income passes $1 million.
• Assuming California follows new federal tax breaks automatically.
• Using last year’s bracket thresholds. They change with inflation.

Sales tax is a second part of the California bill. Estimate it with our sales tax calculator. For official rate tables and forms, our state tax data sources page points to the FTB.

Frequently asked questions

What is the California state income tax rate?

California has nine brackets from 1% to 12.3%. Taxable income above $1 million also pays a 1% surcharge, so the top marginal rate is 13.3%.

What is the California standard deduction for 2025?

It is $5,706 for single filers and married filing separately, and $11,412 for joint filers, head of household and surviving spouse filers.

Does California tax Social Security benefits?

No. California does not tax Social Security benefits, although the federal government may tax part of them.

Does California tax capital gains?

Yes. California taxes capital gains as ordinary income at the regular bracket rates.

Does California have local income taxes?

No. California cities and counties do not levy a local income tax on wages.

Is overtime taxed in California?

Yes. California does not conform to the federal deduction for qualified overtime, so overtime is taxed like other wages.

When are California income tax brackets updated?

The FTB adjusts thresholds each year for inflation and publishes the new figures in the fall.

Not affiliated with any government agency. Information only, not tax or legal advice. Read the full disclaimer.