California Income Tax Rates and Brackets
California has the highest top income tax rate in the country, but most people pay far less than it suggests. Here are the actual brackets.
For tax year 2025, California has nine income tax brackets from 1% to 12.3%, plus a 1% Mental Health Services Tax on taxable income over $1,000,000, for a top rate of 13.3%. Rates are marginal: each rate applies only to the income inside its bracket. A single filer earning $85,000 pays about $3,660 in California tax, an effective rate of 4.3%.
Tax year 2025 brackets: single or married filing separately
| Taxable income | Rate on income in this bracket |
|---|---|
| $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% |
| Over $742,953 | 12.3% |
Married filing jointly
| Taxable income | Rate on income in this bracket |
|---|---|
| $0–$22,158 | 1% |
| $22,159–$52,528 | 2% |
| $52,529–$82,904 | 4% |
| $82,905–$115,084 | 6% |
| $115,085–$145,448 | 8% |
| $145,449–$742,958 | 9.3% |
| $742,959–$891,542 | 10.3% |
| $891,543–$1,485,906 | 11.3% |
| Over $1,485,906 | 12.3% |
The 1% Mental Health Services Tax applies to taxable income over $1,000,000 for every filing status. Unlike the brackets, that threshold is not doubled for joint filers.
Marginal vs. effective rate
Moving into a higher bracket never raises the tax on the income below it. A single filer with $85,000 of wages subtracts the $5,706 standard deduction, leaving $79,294 taxable. Their marginal rate is 9.3%, but after the $153 personal exemption credit the total tax is about $3,660, an effective rate of 4.3% of gross pay.
Standard deduction and exemption credits
California's standard deduction is small: $5,706 single and $11,412 for joint filers. Instead of personal exemptions, California gives credits that reduce tax directly: $153 per filer, $153 more for each filer 65+, and $475 per dependent. They phase out at high incomes.
How California differs from the federal return
- No lower rate for capital gains. Gains are taxed at the same rates as wages. See the capital gains calculator.
- Social Security isn't taxed, and neither are California unemployment benefits.
- No QBI deduction for business owners, and HSA contributions are not deductible.
- Different credits: the refundable CalEITC, Young Child Tax Credit and the renter's credit.
Brackets change every year
California indexes its brackets to inflation each year. This page reads the brackets from our data file and will show a notice if they are out of date.
Calculate your tax
The CA State Income Tax Calculator runs your income through these brackets. To see whether you'll get a refund, use the tax refund calculator.
Frequently Asked Questions
What is the California state income tax rate?
California has nine brackets from 1% to 12.3%, plus a 1% Mental Health Services Tax on taxable income over $1 million, for a top rate of 13.3%. Each rate applies only to income within its bracket.
What is the highest California income tax bracket?
12.3% on taxable income above the top bracket threshold, plus the 1% Mental Health Services Tax on income over $1 million, for a combined top marginal rate of 13.3%, the highest state rate in the U.S.
Does California tax capital gains at a lower rate?
No. California taxes capital gains as ordinary income at the same bracket rates as wages.
What is the California standard deduction?
For tax year 2025 it is $5,706 for single filers and $11,412 for married couples filing jointly, much smaller than the federal standard deduction.
Does California tax Social Security?
No. Social Security benefits are fully exempt from California income tax.
This article is for general information only and is not tax advice. Brackets are indexed yearly; check the FTB for the tax year you are filing.