California Tax Brackets 2025
California has 9 progressive tax brackets ranging from 1% to 12.3%, plus an additional 1% Mental Health Services Tax on income over $1 million. This makes California's top rate of 13.3% the highest state income tax rate in the United States.
The good news for middle-income earners: California's progressive system means you only pay the higher rates on income above each bracket threshold. If you earn $75,000, you're not paying 9.3% on all of it—you pay 1% on the first portion, 2% on the next portion, and so on.
2025 Tax Brackets for Single Filers
| Taxable Income | Tax Rate | Tax Owed (Cumulative) |
|---|---|---|
| $0 - $11,079 | 1% | $111 max |
| $11,080 - $26,264 | 2% | $111 + 2% of amount over $11,079 |
| $26,265 - $41,452 | 4% | $415 + 4% of amount over $26,264 |
| $41,453 - $57,542 | 6% | $1,023 + 6% of amount over $41,452 |
| $57,543 - $72,724 | 8% | $1,988 + 8% of amount over $57,542 |
| $72,725 - $371,478 | 9.3% | $3,203 + 9.3% of amount over $72,724 |
| $371,479 - $445,770 | 10.3% | $30,984 + 10.3% of amount over $371,478 |
| $445,771 - $742,953 | 11.3% | $38,637 + 11.3% of amount over $445,770 |
| Over $742,954 | 12.3% | $72,209 + 12.3% of amount over $742,953 |
2025 Tax Brackets for Married Filing Jointly
Married couples filing jointly get roughly double the bracket thresholds:
| Taxable Income (Joint) | Tax Rate |
|---|---|
| $0 - $22,157 | 1% |
| $22,158 - $52,528 | 2% |
| $52,529 - $82,905 | 4% |
| $82,906 - $115,084 | 6% |
| $115,085 - $145,448 | 8% |
| $145,449 - $742,957 | 9.3% |
| $742,958 - $891,541 | 10.3% |
| $891,542 - $1,485,907 | 11.3% |
| Over $1,485,908 | 12.3% |
How California State Tax Works
California uses a progressive tax system, which means you pay different rates on different portions of your income. Think of it like climbing stairs—each step up only applies to the income in that range.
Example: $75,000 Income
Let's say you're single and earn $75,000 in 2025:
- Start with gross income: $75,000
- Subtract standard deduction: $5,540
- Taxable income: $69,460
- Calculate tax:
- $11,079 × 1% = $111
- $15,185 × 2% = $304
- $15,188 × 4% = $608
- $16,090 × 6% = $965
- $11,498 × 8% = $920
- Total CA state tax: ~$2,908
- Effective rate: 3.9% (not 8%!)
Standard Deduction 2025
- Single filers: $5,540
- Married filing jointly: $11,080
- Head of household: $11,080
Note: California's standard deduction is much lower than the federal standard deduction ($15,000/$30,000). This means you might itemize on federal but take the standard deduction for California, or vice versa.
California vs. Other States
If you earn $75,000:
- California: ~$2,908 state tax (3.9% effective)
- Texas: $0 (no state income tax) - Save $2,908/year
- New York: ~$3,400 state tax (4.5% effective)
- Nevada: $0 (no state income tax) - Save $2,908/year
- Oregon: ~$4,200 state tax (5.6% effective)
Why California's Taxes Are Higher
California's high tax rates fund extensive state services including:Medi-Cal (Medicaid), CalFresh (food assistance), state university systems, extensive public transit, environmental programs, and social services. Whether these services are worth the higher taxes depends on your personal situation and values.
Affordable Tax Prep Options for Californians
California's complex tax brackets mean doing your taxes correctly matters. Here are budget-friendly options for middle-class filers:
Best Low-Cost Tax Software (2025)
-
FreeTaxUSA - $0 federal, $14.99 CA state
Great for straightforward W-2 income. Clean interface, handles CA brackets perfectly. Used by millions. Best value if you're not itemizing.
-
Cash App Taxes - FREE for federal and state
Completely free, even for state returns. Works well for simple to moderately complex returns. Backed by Credit Karma. Can't beat free!
-
TaxSlayer - $24.95 federal, $39.95 for both
Good if you have rental property or side business. More features than FreeTaxUSA, still affordable. Excellent customer reviews.
When to Use a Local Tax Preparer
Consider hiring help if you:
- Own rental property in CA (depreciation, passive loss rules)
- Have a side business or 1099 income over $20,000
- Moved to/from California mid-year
- Sold stocks, crypto, or real estate
- Want help maximizing CA-specific credits
Finding Affordable Tax Help in California
Local Options (Not Big Chains):
- VITA (Volunteer Income Tax Assistance): FREE for income under $64,000. Available at libraries and community centers statewide. IRS-certified volunteers. Find a location
- Local EA (Enrolled Agent): Cost: $150-$400 for basic return. Search "Enrolled Agent" + your city. EAs specialize in tax and cost less than CPAs. Check credentials at NAEA.org
- Community Tax Centers: Non-profits offer sliding scale fees ($50-$150). Look for "community tax center" or "low income tax preparation" + your city.
Avoid: High-cost chains charging $300+ for simple W-2 returns. You're paying for the brand name, not better service.
California Tax Filing Deadlines
- Tax Day: April 15, 2026 (for 2025 tax year)
- Extension Deadline: October 15, 2026
- Estimated Tax Payments: Quarterly if self-employed
Common California Tax Questions
Does California tax Social Security benefits?
No. California does not tax Social Security benefits, unlike many other states. This makes CA more retirement-friendly than its high tax rates suggest.
Are there local income taxes in California?
No. California has no city or county income taxes. You only pay state tax + federal tax. (Compare to NYC residents who pay an extra 3-4% city tax on top of state tax.)
What if I work remotely for a company in another state?
If you live in California and work remotely, you pay California state tax regardless of where your employer is located. California taxes all income earned by CA residents.
Can I avoid CA tax by claiming residency elsewhere?
Careful! California's Franchise Tax Board is aggressive about tracking residency. If you spend more than 9 months in CA or maintain significant ties (home, family, driver's license), you're likely a CA resident for tax purposes. Consult a tax pro before attempting this.
2025 California Tax Updates
For 2025, California applied a 3.0% inflation adjustment to all tax brackets. This means the income thresholds increased slightly from 2024, which helps offset inflation. The tax rates themselves (1% through 12.3%) remain unchanged.
Official brackets will be published in late December 2025 by the California Franchise Tax Board. The brackets shown above are based on the announced 3.0% adjustment applied to 2024 brackets.
Compare California to Other States
No income tax Florida
No income tax Nevada
No income tax New York
Up to 10.9% Oregon
Up to 9.9% Washington
No income tax
Compare CA with other states: CA vs TX | CA vs FL
State rankings: Highest Tax States 2025 | Lowest Tax States 2025 | Best States for Retirees | States with No Income Tax