California Income Tax Brackets and Rates (2025-26 Tax Year)
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The short answer: California taxes income at nine progressive rates from 1% to 12.3%. Taxable income above $1 million is hit with an extra 1% mental health services tax, for a top marginal rate of 13.3%.
The brackets below are the official Franchise Tax Board (FTB) schedules for the 2025 tax year, the returns filed in 2026.
How California’s income tax brackets work
California has a progressive income tax. That does not mean all your income is taxed at your top rate. Only the slice of income that falls inside each bracket is taxed at that bracket’s rate.
Two terms matter:
- Marginal rate: the rate on your next dollar of income. It is the rate of the highest bracket you reach.
- Effective rate: your total tax divided by your taxable income. It is always lower than your marginal rate, and it is the better measure of what you actually pay.
The brackets apply to taxable income, which is your California adjusted gross income minus the standard deduction or your itemized deductions. They do not apply to your gross pay.
California adjusts bracket thresholds for inflation every year, so the dollar amounts move up while the rates stay the same. For 2025, FTB’s inflation measure was 3.0%, so bracket thresholds rose roughly 3% from 2024. For example, the top of the first single-filer bracket went from $10,756 to $11,079.
2025 California tax brackets by filing status
FTB publishes three rate schedules. The tax column shows the tax owed on income up to the start of that bracket, so you can calculate your tax by adding the base amount to the rate times your income above the bracket floor.
FTB says to use its Tax Table if your taxable income is $100,000 or less, and these schedules if it is higher. The results are consistent.
| Taxable income over | But not over | Rate | Base tax at floor |
|---|---|---|---|
| $0 | $11,079 | 1.0% | $0.00 |
| $11,079 | $26,264 | 2.0% | $110.79 |
| $26,264 | $41,452 | 4.0% | $414.49 |
| $41,452 | $57,542 | 6.0% | $1,022.01 |
| $57,542 | $72,724 | 8.0% | $1,987.41 |
| $72,724 | $371,479 | 9.3% | $3,201.97 |
| $371,479 | $445,771 | 10.3% | $30,986.19 |
| $445,771 | $742,953 | 11.3% | $38,638.27 |
| $742,953 | and over | 12.3% | $72,219.84 |
| Taxable income over | But not over | Rate | Base tax at floor |
|---|---|---|---|
| $0 | $22,158 | 1.0% | $0.00 |
| $22,158 | $52,528 | 2.0% | $221.58 |
| $52,528 | $82,904 | 4.0% | $828.98 |
| $82,904 | $115,084 | 6.0% | $2,044.02 |
| $115,084 | $145,448 | 8.0% | $3,974.82 |
| $145,448 | $742,958 | 9.3% | $6,403.94 |
| $742,958 | $891,542 | 10.3% | $61,972.37 |
| $891,542 | $1,485,906 | 11.3% | $77,276.52 |
| $1,485,906 | and over | 12.3% | $144,439.65 |
| Taxable income over | But not over | Rate | Base tax at floor |
|---|---|---|---|
| $0 | $22,173 | 1.0% | $0.00 |
| $22,173 | $52,530 | 2.0% | $221.73 |
| $52,530 | $67,716 | 4.0% | $828.87 |
| $67,716 | $83,805 | 6.0% | $1,436.31 |
| $83,805 | $98,990 | 8.0% | $2,401.65 |
| $98,990 | $505,208 | 9.3% | $3,616.45 |
| $505,208 | $606,251 | 10.3% | $41,394.72 |
| $606,251 | $1,010,417 | 11.3% | $51,802.15 |
| $1,010,417 | and over | 12.3% | $97,472.91 |
Source: California Franchise Tax Board, 2025 California Tax Rate Schedules. Registered domestic partners (RDPs) use the same schedules as married couples.
The extra 1% tax on income over $1 million
On top of the regular brackets, California charges an additional 1% Mental Health Services Tax on taxable income above $1 million. Voters created it in 2004 through Proposition 63 to fund mental health programs.
The $1 million threshold is the same for every filing status. A tax-paying couple filing jointly does not get a $2 million threshold. Combined with the 12.3% top bracket, high earners face a 13.3% marginal rate on income above $1 million.
Only the portion above $1 million is hit. If your taxable income is $1,200,000, the extra tax is 1% of $200,000, or $2,000.
Standard deduction and personal credits
For 2025, California’s standard deduction is:
- $5,706 for single filers and married/RDP filing separately
- $11,412 for married/RDP filing jointly, qualifying surviving spouses, and head of household
You can instead itemize if your California itemized deductions are higher. Note that California does not allow a deduction for state income taxes the way the federal return treats certain taxes, so your itemized total can differ from your federal Schedule A.
California also gives small exemption credits, which reduce your tax directly rather than your income. For 2025, the personal exemption credit is $153 per person and the dependent exemption credit is $475 per dependent. Other credits, such as the California Earned Income Tax Credit and the Young Child Tax Credit, may also apply depending on your income and family situation.
Worked examples
Example 1: Single filer with $100,000 of taxable income
Bracket: $72,724 to $371,479 at 9.3%
Income above floor: $100,000 − $72,724 = $27,276
Tax: $3,201.97 + (9.3% × $27,276) = $3,201.97 + $2,536.67
California tax ≈ $5,738.64 (effective rate about 5.7%, even though the marginal rate is 9.3%)
Example 2: Married couple filing jointly with $125,000 of taxable income
Bracket: $115,084 to $145,448 at 8%
Income above floor: $125,000 − $115,084 = $9,916
Tax: $3,974.82 + (8% × $9,916) = $3,974.82 + $793.28
California tax ≈ $4,768 (effective rate about 3.8%). This is the same example FTB uses in its own instructions.
Example 3: Single filer with $1,200,000 of taxable income
Top bracket (over $742,953) at 12.3%
Income above floor: $1,200,000 − $742,953 = $457,047
Regular tax: $72,219.84 + (12.3% × $457,047) = $72,219.84 + $56,216.78 = $128,436.62
Mental Health Services Tax: 1% × ($1,200,000 − $1,000,000) = $2,000.00
Total California tax ≈ $130,436.62 (effective rate about 10.9%)
These examples start from taxable income and ignore credits, so your actual bill may be lower. They are illustrations, not a substitute for a prepared return.
California vs. federal: key differences
- Different rates and thresholds. California’s nine brackets (1% to 12.3%) are separate from the federal brackets.
- Much lower standard deduction. California’s is $5,706 for single filers, while the federal standard deduction for 2025 is $15,750.
- No lower rate for capital gains. Long-term gains, qualified dividends, and wages are all taxed at the same ordinary California rates.
- Social Security is not taxed. California does not tax Social Security benefits.
- California does not automatically follow every federal change. State law conforms to the Internal Revenue Code only as of a set date, and legislators decide which new federal provisions to adopt. For tax years starting in 2025, that conformity date was moved to January 1, 2025, but some federal rules still do not apply in California.
Because of these gaps, you generally need to adjust federal figures on Schedule CA (540) before calculating your state tax.
Ways to lower your California tax
- Contribute to retirement accounts. Traditional 401(k) and IRA contributions reduce taxable income for state purposes too.
- Claim every credit you qualify for. Check the California EITC, Young Child Tax Credit, renter’s credit, and dependent care credits.
- Track business deductions. Self-employed taxpayers can deduct ordinary business expenses, and the pass-through entity elective tax may help some owners.
- Time income and deductions. Bunching deductions or deferring income can keep you out of a higher bracket in a given year.
- Plan before year-end. Most strategies must be in place before December 31, not at filing time.
- Pay estimated taxes on time. If you have income without withholding, quarterly payments help you avoid underpayment penalties.
Filing deadlines
The regular deadline for 2025 California returns was April 15, 2026. If you filed an extension, the extended deadline is October 15, 2026, which is only days away. An extension gives you more time to file, not more time to pay. Any tax you still owe may carry interest and penalties from the original due date.
Frequently asked questions
What are California’s income tax rates?
For the 2025 tax year, California has nine tax brackets with rates of 1%, 2%, 4%, 6%, 8%, 9.3%, 10.3%, 11.3% and 12.3%. Taxpayers with taxable income over $1 million also pay an additional 1% mental health services tax.
What is the highest income tax rate in California?
The top bracket rate is 12.3%. Because of the extra 1% tax on taxable income above $1 million, the top effective marginal rate is 13.3%.
Does California have a flat income tax?
No. California uses a progressive system, so each slice of your taxable income is taxed at the rate for its bracket, and higher slices are taxed at higher rates.
Does California tax capital gains at a lower rate?
No. California taxes capital gains as ordinary income at the same rates as wages, with no separate lower long-term capital gains rate.
Does California tax Social Security benefits?
No. California does not tax Social Security benefits, even if a portion is taxable on your federal return.
Are California tax brackets the same as federal brackets?
No. California has its own rates, bracket thresholds, standard deduction, and credits, and its standard deduction is much lower than the federal one.
When were 2025 California tax returns due?
The regular due date was April 15, 2026. An extension to file runs to October 15, 2026, but an extension does not extend the time to pay any tax owed.