California Income Tax Calculator
Tax Breakdown
California Tax Overview
California Income Tax Brackets 2026
California has a progressive income tax system with nine tax brackets. The rates range from 1% on the first $10,412 of taxable income (for single filers) to 12.3% on income over $698,271. An additional 1% Mental Health Services Tax applies to taxable income exceeding $1,000,000, bringing the effective top rate to 13.3% — the highest state income tax rate in the United States.
| Taxable Income (Single) | Rate | Taxable Income (MFJ) | Rate |
|---|---|---|---|
| $0 – $10,412 | 1.00% | $0 – $20,824 | 1.00% |
| $10,412 – $24,684 | 2.00% | $20,824 – $49,368 | 2.00% |
| $24,684 – $38,959 | 4.00% | $49,368 – $77,918 | 4.00% |
| $38,959 – $54,081 | 6.00% | $77,918 – $108,162 | 6.00% |
| $54,081 – $68,350 | 8.00% | $108,162 – $136,700 | 8.00% |
| $68,350 – $349,137 | 9.30% | $136,700 – $698,274 | 9.30% |
| $349,137 – $418,961 | 10.30% | $698,274 – $837,922 | 10.30% |
| $418,961 – $698,271 | 11.30% | $837,922 – $1,396,542 | 11.30% |
| $698,271+ | 12.30% | $1,396,542+ | 12.30% |
| + 1% Mental Health Services Tax on income over $1,000,000 | |||
California Standard Deduction
California offers its own standard deduction, which is separate from the federal standard deduction. For 2025/2026, the California standard deduction is approximately $5,540 for single filers and $11,080 for married filing jointly. These amounts are significantly lower than the federal standard deduction ($15,000 single / $30,000 married), meaning Californians often have higher taxable income at the state level.
California Sales Tax
California has the highest state-level sales tax rate in the nation at 7.25%. Local jurisdictions (cities, counties, and special districts) can add their own sales taxes, pushing the combined rate significantly higher in many areas. The average combined state and local rate across California is approximately 8.68%.
Notable Local Rates
- Los Angeles — 9.50% (county rate can be higher in some areas)
- San Francisco — 8.625%
- San Jose / Santa Clara County — 9.375%
- San Diego — 7.75%
- Oakland / Alameda County — 10.25% (one of the highest in CA)
California exempts most unprepared groceries and prescription medications from sales tax. Prepared food, restaurant meals, and non-prescription drugs are taxable.
California Property Tax
California's effective property tax rate is approximately 0.71%, which is below the national average. This relatively low rate is largely due to Proposition 13, passed by voters in 1978, which provides two major protections:
- Base rate cap: The property tax rate is limited to 1% of the assessed value (plus any voter-approved bonds and special assessments).
- Assessment increase cap: The assessed value can increase by no more than 2% per year, regardless of actual market appreciation. The property is only reassessed at market value when it changes ownership.
This means long-term California homeowners often pay property tax based on an assessed value far below the current market value of their home. A home purchased for $200,000 in 1990 might now be worth $1,500,000, but the assessed value (after 2% annual increases) would be approximately $400,000.
California SDI (State Disability Insurance)
California workers pay State Disability Insurance (SDI) tax at a rate of 1.2% on wages up to approximately $153,164. The maximum annual SDI withholding is approximately $1,378.48. SDI provides short-term disability benefits and funds the state's Paid Family Leave (PFL) program. SDI is a payroll tax that appears on your pay stub separately from state income tax.
California Franchise Tax
Businesses in California pay a minimum franchise tax of $800 per year, regardless of income. This applies to LLCs, S corporations, and C corporations. LLCs also pay an annual fee based on gross revenue: $900 for revenue over $250,000, $2,500 for over $500,000, $6,000 for over $1 million, and $11,790 for over $5 million.
California vs. Neighboring States
California's high tax burden drives many residents to consider moves to neighboring states:
- Nevada — No income tax, 6.85% state sales tax (+local), 0.53% property tax. A popular destination for Californians, especially in the Reno/Carson City area.
- Arizona — 2.50% flat income tax (recently reduced from graduated), lower cost of living. Phoenix and Scottsdale are top destinations for CA transplants.
- Oregon — 9.9% top income tax rate (also high), but no sales tax. Different trade-off but not necessarily lower overall tax burden.
- Texas — No income tax. The most popular destination for Californians in recent years, though higher property taxes and sales taxes partially offset the savings.
Use our state comparison calculator to see exactly how much you could save by moving from California to another state.
Frequently Asked Questions
California has 9 income tax brackets for 2026 ranging from 1% to 12.3%. An additional 1% Mental Health Services Tax applies to income over $1 million, making the effective top rate 13.3% — the highest in the nation.
California's state sales tax rate is 7.25%, the highest state-level rate in the US. With local add-ons, the average combined rate is approximately 8.68%. Some areas have combined rates exceeding 10%.
Yes. California's effective property tax rate is approximately 0.71%, below the national average. Proposition 13 limits assessed value increases to 2% per year and caps the base rate at 1%.
State Disability Insurance is a payroll tax of 1.2% on wages up to ~$153,164. Maximum annual SDI withholding is ~$1,378.48. It funds short-term disability and paid family leave.
At the top bracket, California's 13.3% exceeds New York's 10.9% state rate. However, NYC residents pay an additional 3.078%-3.876% city tax. For most income levels, California has the higher overall state income tax burden.