California Income Tax Calculator 2026
See your California state tax, effective rate, and take-home pay in 60 seconds.
Estimate only. Uses 2026 federal figures, Californiastate figures (see sources below), and a standard-deduction federal calculation. Filing status “Head of household” uses the single column for California. Your actual tax depends on credits, additional income, and adjustments.
Worked example: A single filer earning $120,000 in Los Angeles
Start with $120,000 of wages. Subtract the $5,202 California standard deduction to get about $114,798 of taxable income. Running that up the brackets — 1% to 9.3% — lands at roughly $7,300 of California income tax, an effective state rate near 6.1%, with a 9.3% marginal rate. Los Angeles adds no city income tax. Federal income tax and FICA are calculated separately and shown in the calculator above.
Assumes a single filer taking the standard treatment. Figures are educational estimates.
How California taxes income
California uses a graduated income tax: your income is taxed in slices, with each slice taxed at a higher rate as you move up nine brackets from 1% to 12.3%. A 1% Mental Health Services Tax on taxable income over $1,000,000 pushes the top marginal rate to 13.3%.
California starts from your federal AGI, applies California-specific additions and subtractions, then subtracts the California standard deduction (or your itemized deductions). Unlike most states, California also fully taxes capital gains and most retirement income as ordinary income — only Social Security is exempt.
2026 rate structure
| Rate | Single — taxable income up to | MFJ — taxable income up to |
|---|---|---|
| 1.00% | $10,412 | $20,824 |
| 2.00% | $24,684 | $49,368 |
| 4.00% | $38,959 | $77,918 |
| 6.00% | $54,081 | $108,162 |
| 8.00% | $68,350 | $136,700 |
| 9.30% | $349,137 | $698,274 |
| 10.30% | $418,961 | $837,922 |
| 11.30% | $698,274 | $1,396,548 |
| 12.30% | $1,000,000 | $2,000,000 |
| 13.30% | and above | and above |
Retirement income & Social Security
California fully taxes most retirement income as ordinary income, including distributions from 401(k)s, 403(b)s, IRAs, and private and public pensions. There is no general retirement income exclusion. The notable exceptions are Social Security and Railroad Retirement benefits, which are exempt. This makes California one of the more expensive states for high retirement income, despite exempting Social Security.
Local taxes & reciprocity
California has no local or city income tax. No California municipality — including Los Angeles or San Francisco — levies a separate income or wage tax on residents' earnings. (California's high combined tax burden comes from its state income and sales taxes, not local income taxes.)
Reciprocity: California has no income tax reciprocity agreements. If you work across state lines, you generally file a non-resident return where you work and claim a credit to avoid double taxation.
Notable deductions, credits & other taxes
Deductions & credits
- California standard deduction ($5,202 single / $10,404 MFJ)
- Personal exemption credit (~$149 per filer, indexed) and dependent exemption credit
- CalEITC — California Earned Income Tax Credit for low-to-moderate income workers
- Young Child Tax Credit (with qualifying CalEITC and a child under 6)
- Nonrefundable Renter's Credit ($60 single / $120 MFJ, income-limited)
- Itemized deductions broadly follow federal rules, with California modifications
Capital gains: California has no preferential capital gains rate. All capital gains — short- and long-term — are taxed as ordinary income at rates up to 13.3%, which can make California capital gains among the most heavily taxed in the country.
Property tax: Thanks to Proposition 13, California property taxes are relatively low as a share of value — an average effective rate near 0.71%, well below the national average — though high home prices still produce large dollar bills.
California vs. neighboring states
California's top rates dwarf its neighbors. Nevada has no income tax at all, and Arizona is a flat 2.5% — both far lower than California's 9.3%+ marginal rates for middle and upper incomes. Oregon is the closest comparison, with a graduated system topping out at 9.9%, but Oregon has no sales tax while California's is the highest in the nation. For high earners, the gap between California and Nevada or Arizona is one of the largest in the country.
California state tax FAQs
What is the California state income tax rate for 2026?
California has nine graduated brackets ranging from 1% to 12.3%, plus a 1% Mental Health Services Tax on taxable income over $1,000,000 — a top marginal rate of 13.3%, the highest of any state. Brackets are adjusted for inflation each year by the Franchise Tax Board.
Does California tax retirement income or Social Security?
California exempts Social Security and Railroad Retirement benefits, but it fully taxes most other retirement income — including 401(k), IRA, and pension distributions — as ordinary income. There is no general retirement income exclusion.
How are capital gains taxed in California?
California has no special capital gains rate. Both short- and long-term capital gains are taxed as ordinary income at rates up to 13.3%, on top of any federal capital gains tax.
Is there a city income tax in Los Angeles or San Francisco?
No. California has no local or municipal income tax on individuals' wages. Cities like Los Angeles and San Francisco do not levy a personal income or earnings tax (San Francisco's gross receipts and payroll taxes apply to businesses, not individual employees).
Does California have tax reciprocity with other states?
No. California has no income tax reciprocity agreements with any state. If you live in California and work in another state (or vice versa), you generally file a nonresident return where you earned the income and claim a credit to avoid double taxation.
Why is California's tax burden so high if property taxes are low?
Proposition 13 caps property tax increases, keeping the effective property tax rate near 0.71% of value. California instead relies heavily on its progressive income tax (up to 13.3%) and the nation's highest statewide sales tax base (7.25%), so the overall burden is driven by income and sales taxes rather than property tax.
Sources & verification
Last verified June 12, 2026.