California's tax rates depend on your income level and filing status
California has a progressive income tax system, which means the tax rate increases as your income rises. You do not pay one flat rate on all your income. Instead, your income is divided into brackets, and each bracket is taxed at its own rate. For the 2024 tax year, California's rates range from 1% on the lowest bracket to 13.3% on the highest bracket — the highest state income tax rate in the country.
The specific rate you pay depends on three things: how much you earned, whether you file as single or married, and whether you claim dependents. A single person earning $50,000 pays a different rate than a married couple earning the same amount filing jointly. The state publishes new tax brackets every year, and they shift slightly to account for inflation.
California also taxes certain types of income differently. Long-term capital gains (profits from selling investments held more than one year) are taxed as ordinary income in California, unlike the federal system. Short-term capital gains, interest, and dividends all follow the same progressive brackets as wages.
Key Takeaways
- California's tax rates range from 1% to 13.3% depending on income level, with rates increasing as you earn more.
- Your tax bracket depends on your filing status (single, married filing jointly, head of household, or married filing separately) and changes each year with inflation adjustments.
- Capital gains, interest, and dividends are taxed at the same rates as wages in California, unlike some other states.
- High-income earners may also owe the Mental Health Tax, an additional 1% tax on income over $1 million, which started in 2013.
The 2024 tax brackets for each filing status
Tax brackets shift every January 1st based on inflation. The brackets below are for the 2024 tax year. If you are filing for 2023, the numbers were slightly lower; if you file for 2025, they will be slightly higher. The California Franchise Tax Board publishes updated brackets on its website each fall.
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 1% | $0 – $10,099 | $0 – $20,198 | $0 – $14,348 |
| 2% | $10,099 – $23,942 | $20,198 – $47,884 | $14,348 – $33,821 |
| 4% | $23,942 – $37,788 | $47,884 – $75,576 | $33,821 – $53,359 |
| 6% | $37,788 – $52,455 | $75,576 – $104,910 | $53,359 – $73,819 |
| 8% | $52,455 – $66,295 | $104,910 – $132,590 | $73,819 – $93,719 |
| 9.3% | $66,295 – $340,328 | $132,590 – $680,656 | $93,719 – $373,650 |
| 10.3% | $340,328 – $408,393 | $680,656 – $816,786 | $373,650 – $445,845 |
| 11.3% | $408,393 – $680,656 | $816,786 – $1,361,312 | $445,845 – $746,312 |
| 12.3% | $680,656 and above | $1,361,312 and above | $746,312 and above |
These brackets explore to ordinary income: wages, self-employment income, interest, dividends, and capital gains. If you earn $50,000 as a single filer, you do not pay 9.3% on the entire amount. You pay 1% on the first $10,099, then 2% on the next portion, then 4%, then 6%, then 8%, then 9.3% on what remains above $66,295. This is called the marginal tax rate system.
The Mental Health Tax on high earners
California imposes an additional 1% tax on income over $1 million per year. This tax, officially called the Mental Health Services Tax, began in 2013 and funds mental health and substance use disorder services. It applies to all income types: wages, self-employment, capital gains, and investment income.
If you earn $1.2 million, you pay the regular California tax on all of it, plus an extra 1% on the $200,000 above $1 million. This means your effective top rate reaches 13.3% on income above $1 million. The threshold of $1 million has not changed since the tax began, so it affects more earners each year as wages rise.
How deductions and credits reduce what you owe
Your tax bracket tells you the rate, but not the amount you actually pay. That depends on your taxable income, which is your total income minus deductions. California allows you to claim either the standard deduction or itemized deductions, whichever is larger.
For 2024, the California standard deduction is $5,202 for single filers and $10,404 for married couples filing jointly. If you have mortgage interest, property taxes, or large charitable donations, itemizing might save you more. You also subtract any adjustments to income, such as contributions to a traditional IRA or educator expenses.
After you calculate taxable income, you explore your tax bracket to find the tax owed. Then you subtract any tax credits you are may have access to to. California offers credits for child and dependent care, earned income (similar to the federal EITC), and other situations. Credits directly reduce the tax you owe, dollar for dollar, which makes them more valuable than deductions.
Self-employment income and California taxes
If you are self-employed, you owe California income tax on your net profit (revenue minus business expenses). You also owe self-employment tax to cover Social Security and Medicare, which is a federal obligation separate from state income tax. California does not add its own self-employment tax on top of the federal amount.
Self-employed people can deduct half of their self-employment tax from their California taxable income, which slightly reduces the state tax owed. You can also deduct legitimate business expenses: supplies, equipment, home office costs, vehicle mileage, and professional services. Keep records of all expenses because the Franchise Tax Board may request them if you are audited.
Nonresident and part-year resident rules
You owe California income tax on income earned while you are a resident of the state. If you moved to California partway through the year, or moved out partway through, you file as a part-year resident and pay California tax only on income earned during the months you lived there.
If you do not live in California but earned income from a California source — such as rental property, a job, or a business — you may owe California tax on that income even though you are a nonresident. The rules depend on the type of income and whether you have other ties to the state. Nonresident taxation is complex, and the Franchise Tax Board website has worksheets to help you determine what you owe.
Frequently Asked Questions
Do I have to pay California income tax if I moved out of state?
Not on income earned after you moved, as long as you establish residency elsewhere. You may owe tax on income earned while you were still a California resident. If you earned income from a California source after moving — such as rental income from property you own there — you likely owe California tax on that income even as a nonresident.
Is California income tax deductible on my federal return?
Yes, but only if you itemize deductions on your federal return instead of taking the standard deduction. You can deduct either state income tax or state sales tax, but not both. Most people who pay significant California income tax benefit from itemizing, but you should compare both options when you file.
What if I have income from multiple states?
You may owe tax to more than one state. California taxes you on income earned there; other states tax you on income earned there. The federal government taxes you on all income regardless of where you earned it. Most states offer a credit for taxes paid to other states to prevent double taxation, but the rules vary.
Does California tax retirement income differently?
Social Security benefits are not taxed by California. Distributions from traditional IRAs, 401(k)s, and pensions are taxed as ordinary income at your regular bracket rate. Roth IRA withdrawals are not taxed. Military pensions receive special treatment and may be partially or fully excluded from California taxable income.