---
title: "California Income Tax Rates and Brackets Explained"
description: "A complete guide to California's nine income tax brackets, standard deductions, exemption credits, and how the FTB calculates your state tax liability."
canonical_url: "https://www.themoneypocket.com/articles/california-income-tax-rates"
last_updated: "2026-05-01T16:53:18.509Z"
---

California has one of the most progressive income tax systems in the United States. With nine tax brackets ranging from 1% to 12.3%, plus an additional 1% surcharge on income above $1,000,000, California's top marginal rate of **13.3%** is the highest state income tax rate in the country.

Understanding how the system works helps you estimate your liability, plan contributions to retirement accounts, and avoid surprises when you file.

## California's Nine Tax Brackets

California uses a **progressive tax system**, which means different portions of your income are taxed at different rates. You only pay the higher rate on income above each threshold — not on all your income.

### Rates for Single Filers and Married/RDP Filing Separately

<table>
<thead>
  <tr>
    <th>
      Taxable Income
    </th>
    
    <th>
      Rate
    </th>
  </tr>
</thead>

<tbody>
  <tr>
    <td>
      $0 – $10,756
    </td>
    
    <td>
      1%
    </td>
  </tr>
  
  <tr>
    <td>
      $10,757 – $25,499
    </td>
    
    <td>
      2%
    </td>
  </tr>
  
  <tr>
    <td>
      $25,500 – $40,245
    </td>
    
    <td>
      4%
    </td>
  </tr>
  
  <tr>
    <td>
      $40,246 – $55,866
    </td>
    
    <td>
      6%
    </td>
  </tr>
  
  <tr>
    <td>
      $55,867 – $70,606
    </td>
    
    <td>
      8%
    </td>
  </tr>
  
  <tr>
    <td>
      $70,607 – $360,659
    </td>
    
    <td>
      9.3%
    </td>
  </tr>
  
  <tr>
    <td>
      $360,660 – $432,787
    </td>
    
    <td>
      10.3%
    </td>
  </tr>
  
  <tr>
    <td>
      $432,788 – $721,314
    </td>
    
    <td>
      11.3%
    </td>
  </tr>
  
  <tr>
    <td>
      Over $721,314
    </td>
    
    <td>
      12.3%
    </td>
  </tr>
</tbody>
</table>

### Rates for Married/RDP Filing Jointly and Qualifying Surviving Spouse

<table>
<thead>
  <tr>
    <th>
      Taxable Income
    </th>
    
    <th>
      Rate
    </th>
  </tr>
</thead>

<tbody>
  <tr>
    <td>
      $0 – $21,512
    </td>
    
    <td>
      1%
    </td>
  </tr>
  
  <tr>
    <td>
      $21,513 – $50,998
    </td>
    
    <td>
      2%
    </td>
  </tr>
  
  <tr>
    <td>
      $50,999 – $80,490
    </td>
    
    <td>
      4%
    </td>
  </tr>
  
  <tr>
    <td>
      $80,491 – $111,732
    </td>
    
    <td>
      6%
    </td>
  </tr>
  
  <tr>
    <td>
      $111,733 – $141,212
    </td>
    
    <td>
      8%
    </td>
  </tr>
  
  <tr>
    <td>
      $141,213 – $721,318
    </td>
    
    <td>
      9.3%
    </td>
  </tr>
  
  <tr>
    <td>
      $721,319 – $865,574
    </td>
    
    <td>
      10.3%
    </td>
  </tr>
  
  <tr>
    <td>
      $865,575 – $1,000,000
    </td>
    
    <td>
      11.3%
    </td>
  </tr>
  
  <tr>
    <td>
      Over $1,000,000
    </td>
    
    <td>
      12.3%
    </td>
  </tr>
</tbody>
</table>

### Rates for Head of Household

<table>
<thead>
  <tr>
    <th>
      Taxable Income
    </th>
    
    <th>
      Rate
    </th>
  </tr>
</thead>

<tbody>
  <tr>
    <td>
      $0 – $21,527
    </td>
    
    <td>
      1%
    </td>
  </tr>
  
  <tr>
    <td>
      $21,528 – $51,000
    </td>
    
    <td>
      2%
    </td>
  </tr>
  
  <tr>
    <td>
      $51,001 – $65,744
    </td>
    
    <td>
      4%
    </td>
  </tr>
  
  <tr>
    <td>
      $65,745 – $81,364
    </td>
    
    <td>
      6%
    </td>
  </tr>
  
  <tr>
    <td>
      $81,365 – $96,107
    </td>
    
    <td>
      8%
    </td>
  </tr>
  
  <tr>
    <td>
      $96,108 – $490,493
    </td>
    
    <td>
      9.3%
    </td>
  </tr>
  
  <tr>
    <td>
      $490,494 – $588,593
    </td>
    
    <td>
      10.3%
    </td>
  </tr>
  
  <tr>
    <td>
      $588,594 – $1,000,000
    </td>
    
    <td>
      11.3%
    </td>
  </tr>
  
  <tr>
    <td>
      Over $1,000,000
    </td>
    
    <td>
      12.3%
    </td>
  </tr>
</tbody>
</table>

## The Mental Health Services Tax

In addition to the standard brackets, California imposes a **1% Mental Health Services Tax (MHST)** on taxable income above $1,000,000. This brings the effective top marginal rate to **13.3%**, one of the highest in the nation.

The MHST is not separately calculated on your tax return — it is built into the Rate Schedule. Funds go directly to county mental health programs under Proposition 63, which voters approved in 2004.

## Standard Deductions

Your taxable income is your gross income minus deductions. If you claim the standard deduction, these are the 2025 amounts:

<table>
<thead>
  <tr>
    <th>
      Filing Status
    </th>
    
    <th>
      Standard Deduction
    </th>
  </tr>
</thead>

<tbody>
  <tr>
    <td>
      Single
    </td>
    
    <td>
      $5,202
    </td>
  </tr>
  
  <tr>
    <td>
      Married/RDP Filing Jointly
    </td>
    
    <td>
      $10,404
    </td>
  </tr>
  
  <tr>
    <td>
      Head of Household
    </td>
    
    <td>
      $10,726
    </td>
  </tr>
  
  <tr>
    <td>
      Married/RDP Filing Separately
    </td>
    
    <td>
      $5,202
    </td>
  </tr>
</tbody>
</table>

California's standard deduction is significantly lower than the federal standard deduction ($15,000 for single filers federally in 2025). This means more of your income is subject to California tax compared to federal tax.

## Exemption Credits

After calculating your tax using the brackets, California allows you to subtract exemption credits directly from what you owe:

<table>
<thead>
  <tr>
    <th>
      Exemption
    </th>
    
    <th>
      Credit Amount
    </th>
  </tr>
</thead>

<tbody>
  <tr>
    <td>
      Single
    </td>
    
    <td>
      $144
    </td>
  </tr>
  
  <tr>
    <td>
      Married/RDP Filing Jointly
    </td>
    
    <td>
      $288
    </td>
  </tr>
  
  <tr>
    <td>
      Head of Household
    </td>
    
    <td>
      $144
    </td>
  </tr>
  
  <tr>
    <td>
      Each qualifying dependent
    </td>
    
    <td>
      $433
    </td>
  </tr>
  
  <tr>
    <td>
      Blind or senior (65+)
    </td>
    
    <td>
      $144 additional
    </td>
  </tr>
</tbody>
</table>

Credits reduce your final tax bill dollar-for-dollar, making them more powerful than deductions of the same size.

## How California Tax Is Calculated: A Step-by-Step Example

Let's walk through how a single filer earning $80,000 gross income pays California taxes.

**Step 1: Subtract the standard deduction**
$80,000 − $5,202 = **$74,798 taxable income**

**Step 2: Apply the tax rate schedule**

- 1% on $10,756 = $107.56
- 2% on ($25,499 − $10,756) = $294.86
- 4% on ($40,245 − $25,499) = $589.84
- 6% on ($55,866 − $40,245) = $937.26
- 8% on ($70,606 − $55,866) = $1,179.20
- 9.3% on ($74,798 − $70,606) = $390.05
- Subtotal: **$3,498.77**

**Step 3: Subtract personal exemption credit**
$3,498.77 − $144 = **$3,354.77 total California tax**

**Effective tax rate:** $3,354.77 / $80,000 = **4.19%****Marginal rate:** **9.3%** (the rate on the last dollar earned)

You can verify this calculation with our [California Income Tax Calculator](/tools/california-income-tax-calculator).

## California vs. Federal Tax: Key Differences

Many taxpayers are surprised to learn that California and federal tax rules differ in several important ways.

**No preferential rate for capital gains.** California taxes long-term capital gains as ordinary income at the same bracket rates. The federal system taxes most long-term capital gains at 0%, 15%, or 20%.

**No deduction for federal taxes paid.** On your California return, you cannot deduct the federal income taxes you pay. The federal return, by contrast, does allow a deduction for certain state and local taxes (though it is capped at $10,000).

**California does not conform to all federal deductions.** Some federal deductions are not recognized in California, and some California-specific deductions have no federal equivalent.

**No standard deduction for itemizers.** If you itemize deductions on your California return, you cannot claim the standard deduction. However, some itemized deductions differ from federal rules.

## Who Must File in California

You must file a California income tax return if your gross income (or adjusted gross income) exceeds the following thresholds:

<table>
<thead>
  <tr>
    <th>
      Filing Status
    </th>
    
    <th>
      Under 65
    </th>
    
    <th>
      65 or older
    </th>
  </tr>
</thead>

<tbody>
  <tr>
    <td>
      Single
    </td>
    
    <td>
      $21,547
    </td>
    
    <td>
      $29,003
    </td>
  </tr>
  
  <tr>
    <td>
      Married/RDP Filing Jointly
    </td>
    
    <td>
      $43,094
    </td>
    
    <td>
      $57,830
    </td>
  </tr>
  
  <tr>
    <td>
      Head of Household
    </td>
    
    <td>
      $34,503
    </td>
    
    <td>
      $41,959
    </td>
  </tr>
  
  <tr>
    <td>
      Married/RDP Filing Separately
    </td>
    
    <td>
      $21,547
    </td>
    
    <td>
      $21,547
    </td>
  </tr>
</tbody>
</table>

Even if you are not required to file, you should file if California taxes were withheld from your wages, since you may be entitled to a refund.

## California Income Tax Filing Deadlines

- **April 15:** Standard due date for California income tax returns
- **October 15:** Automatic six-month extension deadline (extension is for filing only — taxes owed must be paid by April 15)
- **January 15:** Fourth quarter estimated tax payment deadline for self-employed and others without withholding

## Estimated Tax Payments

If you have income not subject to withholding — from self-employment, rental property, investments, or other sources — you may need to make quarterly estimated tax payments to the FTB to avoid underpayment penalties.

California's estimated tax payment due dates are:

- **April 15** (first installment)
- **June 15** (second installment)
- **September 15** (third installment)
- **January 15** of the following year (fourth installment)

## How to Lower Your California Tax Bill

California residents have several options for reducing state income tax:

**Maximize retirement account contributions.** Contributions to a traditional 401(k) or IRA reduce your California taxable income in the same way they reduce your federal taxable income.

**Contribute to an HSA.** If you have a high-deductible health plan, Health Savings Account contributions are deductible in California (unlike some other states).

**Deduct mortgage interest.** California conforms to the federal mortgage interest deduction, allowing you to deduct interest on loans up to $750,000.

**Claim California-specific credits.** Beyond the standard exemption credits, California offers credits for dependent care expenses, the Earned Income Tax Credit (CalEITC), and the Young Child Tax Credit (YCTC), among others.

## Understanding the FTB Tax Table vs. Rate Schedule

For taxable incomes of **$100,000 or less**, the FTB provides a pre-calculated tax table as part of the Form 540 instruction booklet. You simply find your income range and filing status to get your tax amount.

For taxable incomes **over $100,000**, you must use the Tax Rate Schedules and calculate your tax using the formula approach. This is also how most online calculators — including the [California Income Tax Calculator](/tools/california-income-tax-calculator) on this site — work.

## Filing Your California Return

Most California residents file using one of these options:

- **Form 540 2EZ** — Simplified form for single income sources, no itemized deductions, income under $100,000. See the [540 2EZ Calculator](/tools/california-540-2ez-calculator).
- **Form 540** — Standard return for all individual taxpayers
- **Form 540NR** — For part-year and nonresident taxpayers

You can file online using the FTB's free **CalFile** program at ftb.ca.gov, or use any major tax software. California requires you to e-file if you prepare your return using tax software and you had an adjusted gross income of $100,000 or more.