Previously, she was a copy editing intern at NerdWallet through the Dow Jones News Fund internship program. Bella graduated from The University of Oklahoma with a bachelor’s degree in journalism. Chris Hutchison helped build NerdWallet’s editorial operation and has directed coverage across banking, investing, taxes and insurance. Before joining NerdWallet, he was an editor and programmer at ESPN and an editor at the San Jose Mercury News. As the market share of electric vehicles (EVs) on the road grows, california state income tax the gas tax’s ability to fund road projects and decrease traffic congestion erodes. Wireless consumers continue to be burdened with high taxes, fees, and government surcharges in many states and localities throughout the country.

New Trump order imposes $100K fee on H-1B visas, sparking concern for California tech

E-filing is efficient and speeds up the refund process if applicable. Understanding available deductions, such as home office expenses, aids in tax reduction. These deductions are designed to reflect common costs in self-employment.

Current California Tax Brackets for 2025

• The FTB generally issues refunds within three weeks for electronically filed returns and within three months for paper returns.
• Bankrate.com is an independent, advertising-supported publisher and comparison service.
• Choosing the best option requires calculating which yields greater savings.
• There’s also a 1% mental health services tax surcharge on taxable income over $1 million, bringing the top effective rate to 13.3%.
• As a refundable credit, the EITC not only reduces the amount of tax owed but can also result in a refund if the credit exceeds the taxpayer’s total tax liability.
• Only the amount exceeding the lower bracket threshold is taxed at that higher rate.

Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. They vary by filing status—single, married filing jointly, or head of household—ensuring the system accounts for different household sizes. California also imposes an additional 1% tax on taxable income exceeding $1 million, often referred to as the Mental Health Services Tax.

California Schedule CA ( : Fine-Tuning Your Income

The state uses nine different income tax rates, which are applied based on how much money you make and your filing status. This approach is intended to balance the tax burden across different income levels, with higher earners contributing more to state-funded programs and services. Understanding California state income tax rates and brackets is essential for taxpayers to fulfill their tax obligations and minimize their tax liability. Additionally, proactive tax planning can help taxpayers optimize their financial situation and achieve their long-term tax goals. Unlike some states, California does not have a flat tax rate. Instead, there are nine income tax brackets, ranging from 1% to 12.3%, depending on your taxable income and filing status.

Recent legislative changes, particularly the elimination of payroll tax wage ceilings, create new planning opportunities and challenges for high-earning professionals and business owners. California has the highest state income tax rates in the nation, with a top marginal rate of 13.3% (including 1% Mental Health Tax) on income over $1 million. The deadline to file your California state income tax return is typically April 15th, the same as the federal tax deadline. However, if you need more time, you can request an extension until October 15th. However, you must pay any taxes owed by the original deadline to avoid penalties and interest.

Are You a Resident?

We will update this page with a new version of the form for 2026 as soon as it is made available by the California government. We estimate the OBBBA will reduce federal taxes on average for individual taxpayers in every state. Across all individual tax filers throughout the US, the average tax cut per taxpayer will be over $3,700 in 2026. Yes, California offers several tax credits, such as credits for dependent care, education expenses, and renters. Review the eligibility requirements for each credit to see if you qualify. Certified Public Accountant California allows for both standard and itemized deductions.

• While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the tax data we present.
• California income tax returns follow the federal tax deadline which falls on April 15, 2025.
• This is beneficial if you are unable to itemize deductions.
• Tickmark, Inc. and its affiliates do not provide legal, tax or accounting advice.
• Your tax rate depends on your income and filing status.
• California has an 8.84 percent corporate income tax rate.

The Tax tables below include the tax rates, thresholds and allowances included in the California Tax Calculator 2025. The Tax tables below include the tax rates, thresholds and Bookkeeping vs. Accounting allowances included in the California Tax Calculator 2024. California taxes the military retirement income of residents. Active-duty pay is taxed like normal income if you are a resident of the state.

California State Income Tax Tables in 2024

Examples include credits for dependents or the Earned Income Tax Credit. Compared to other high-tax states such as New York or New Jersey, California’s brackets are broader and impact a larger portion of its residents due to its high cost of living. The following tax tables are supported by iCalculator™ US as part of the suite of free tax tools available in the US Tax HUB we provide for California. The federal standard deduction for a Head of Household Filer in 2026 is $ 22,500.00. California’s complex tax environment creates numerous compliance pitfalls that can be expensive to resolve.

The city of San Francisco levies a gross receipts tax on the payroll expenses of large businesses. Although this is sometimes conflated as a personal income tax rate, the city only levies this tax on businesses. California seniors can claim an additional exemption credit on their state income taxes if they are 65 or older by Dec. 31, 2024.

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California income tax returns follow the federal tax deadline which falls on April 15, 2025. If you can’t file on time, you can request an automatic six-month extension. However, payments are still due by April 15, 2025, even with an extension. The tax rates and brackets below apply to income earned in 2024, reported on taxes filed in 2025. The rates remain the same as last year, but the brackets shifted slightly across all filing statuses.