Living in California is expensive. We all know that. Between the gas prices and the rent, your wallet takes a beating before you even get to the taxes. But when you finally sit down to look at your paycheck, the big question is always: how much is CA state income tax really taking from me?
It's not just one flat number. California uses a progressive system. Basically, the more you make, the more they take. But the way they calculate it is actually a bit more nuanced than people think. You aren't just taxed at your highest bracket for every dollar you earn.
The Brackets You Need to Know
California has nine different tax brackets. They start at a tiny 1% and climb all the way up to 12.3%. Honestly, it’s one of the highest top rates in the country. If you’re a high earner—specifically making over $1 million—there’s an extra 1% mental health services tax surcharge. That brings the "millionaire tax" total to 13.3%.
For the 2025 tax year (the ones you're actually filing right now in early 2026), the brackets look like this for single filers:
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- 1% on the first $11,079 of taxable income.
- 2% on the next chunk up to $26,264.
- 4% on income between $26,264 and $41,452.
- 6% on income between $41,452 and $57,542.
- 8% on income between $57,542 and $72,724.
- 9.3% on income between $72,724 and $371,479.
If you’re married and filing jointly, these income thresholds basically double. For example, that 9.3% rate doesn't kick in for a married couple until they hit $145,448 in taxable income.
Don't Forget the Standard Deduction
Before you start panicking about those percentages, remember the standard deduction. This is the amount of income the state doesn't tax at all. For 2025 tax returns filed in 2026, the California standard deduction is $5,706 for single filers and $11,412 for married couples filing jointly.
You subtract that from your total income first. Then you look at the brackets.
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A lot of people get confused by "taxable income." It isn't your gross salary. It’s what’s left after your 401(k) contributions, health insurance premiums, and that standard deduction.
How Much Is CA State Income Tax on Capital Gains?
Here is a kicker that surprises a lot of people moving from other states: California does not have a special lower rate for long-term capital gains.
Most places—and the federal government—give you a break if you hold a stock or a house for more than a year. California doesn't care. They treat your investment profits exactly like your regular paycheck. If you sell some Nvidia stock and make $50,000, that gets piled right on top of your salary and taxed at whatever your ordinary income tax bracket happens to be.
This can lead to a massive tax bill if you aren't careful. If that gain pushes you into the 10.3% or 11.3% bracket, you're paying that full percentage on your investment profits.
Credits That Can Save You
It isn't all bad news. California has some pretty decent tax credits if you qualify.
- CalEITC: This is for lower-income workers. For the 2025 tax year, it can be worth up to $3,756.
- Young Child Tax Credit (YCTC): If you have a kid under age 6, you might get an extra $1,177.
- Renter’s Credit: If you paid rent in California for at least half the year and your income is below a certain limit ($52,963 for singles in 2025), you can get a small credit. It’s not huge—usually around $60 to $120—but hey, it’s a free lunch or two.
When Is the Deadline?
You’ve got until April 15, 2026, to file your state return and pay what you owe.
California is actually pretty chill about extensions. They give everyone an automatic six-month extension to file their paperwork (until October 15). But—and this is a big "but"—that is an extension to file, not an extension to pay. If you owe money and don't send it by April 15, the Franchise Tax Board (FTB) will start tacking on interest and penalties immediately.
Moving Parts and Misconceptions
People often think they’re paying the top rate on everything. If you're single and make $100,000, your top bracket is 9.3%. But you only pay that 9.3% on the money over $72,724. The first $11,000 is still only taxed at 1%.
This is why your "effective tax rate" is always lower than your "marginal tax rate." For that $100k earner, the actual check they write to Sacramento is usually closer to 6% or 7% of their total income, not nearly 10%.
Also, keep an eye on the One, Big, Beautiful Bill (OBBBA) changes. While many of those changes impacted federal rates and deductions more heavily, they do trickle down into how we calculate California Adjusted Gross Income.
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Actionable Next Steps
To get ahead of your 2026 filing:
- Check your last paystub of 2025. Look at the "CA State Tax" line. If that total is significantly lower than 5-7% of your gross pay, you might want to prepare for a bill in April.
- Gather your 1099s. Since California taxes capital gains as ordinary income, those stock sales are going to hurt more than you expect.
- Use CalFile. If your return is simple, the FTB lets you e-file for free directly on their website. It's much better than paying $50 to a big-name tax software company.
- Adjust your 2026 withholding. If you ended up owing a lot this year, go to your HR portal and update your DE 4 form. Adding just $50 or $100 an extra month in state withholding can save you a lot of stress next spring.
The reality of California taxes is that they are steep, but the system is predictable. Once you know which bracket you fall into, the math becomes a lot less scary. Just make sure you’re setting aside a bit of that "extra" investment income throughout the year so you aren't scrambling when the FTB comes knocking.