In Los Angeles, it’s common for residents to pay over $1,500 a month to live in sought-after neighbourhoods like Santa Monica, even for a shared room styled like an adult dorm! Needless to say, the state of California is bountiful, with its Gross State Product (GSP) standing at $4.172 trillion as of 2024, and being home to 57 of the Fortune 500 companies (2024).
What does this imply for California’s State Income Tax? California has one of the highest state income tax rates in the U.S., with top earners paying up to 13.3% over and above the federal tax! California tax brackets have a progressive tax rate, i.e., the more you earn, the more you pay!
Here’s how the Federal Income Tax compares with the California Income Tax. The tables below represent tax rates corresponding to relevant tax brackets for single filers and married people filing jointly.
Table of Contents
Federal Income Tax Rates and California State Tax brackets & rates for Single Filers & (2025)
Federal Income Tax Rates (2025) Single Filers
| Tax Bracket` | Tax Rate |
| Up to $11,600 | 10% |
| $11,601 – $47,150 | 12% |
| $47,151 – $100,525 | 22% |
| $100,526 – $191,950 | 24% |
| $191,951 – $243,725 | 32% |
| $243,726 – $609,350 | 35% |
| Over $609,351 | 37% |
California State Income Tax Rates (2025) Single Filers
| Tax Bracket | Tax Rate |
| Up to $10,099 | 1% |
| $10,100 – $23,942 | 2% |
| $23,943 – $37,788 | 4% |
| $37,789 – $52,455 | 6% |
| $52,456 – $66,295 | 8% |
| $66,296 – $338,639 | 9.3% |
| $338,640 – $406,364 | 10.3% |
| $406,365 – $677,275 | 11.3% |
| $677,276 – $1,354,550 | 12.3% |
| Over $1,354,550 | 13.3% (top marginal rate) |
Federal Income Tax Rates and California State Tax Brackets & Rates for Married People Filing Jointly (MFJ) (2025)
US Federal Income Tax Rates (2025) – Married Filing Jointly
| Tax Bracket | Tax Rate |
| $0 – $23,850 | 10% |
| $23,851 – $96,950 | 12% |
| $96,951 – $206,700 | 22% |
| $206,701 – $394,600 | 24% |
| $394,601 – $487,450 | 32% |
| $487,451 – $751,600 | 35% |
| Over $751,600 | 37% |
California State Income Tax Rates (2025) – Married Filing Jointly
| Tax Bracket | Tax Rate |
| $0 – $21,512 | 1% |
| $21,513 – $50,998 | 2% |
| $50,999 – $80,490 | 4% |
| $80,491 – $111,732 | 6% |
| $111,733 – $141,212 | 8% |
| $141,213 – $721,318 | 9.3% |
| $721,319 – $865,574 | 10.3% |
| $865,575 – $1,442,628 | 11.3% |
| Over $1,442,628 | 12.3% |
Additionally, there’s a mental health services surtax of 1% on income over $1 million, effectively raising the top rate to 13.3%.
Interpretation of the California Income Tax Rate: What do These Numbers Imply to Taxpayers?
Here’s a simple tax calculation for individuals in the state of California, representing the tax percentages as actual numbers.
Assumption:
- Married and filing jointly (rates represented in Tables 2.1 & 2.2 are applicable)
- Total Taxable Income: $250,000 after deductions
- No other credits or income adjustments are assumed
- Doesn’t include FICA, property tax, or other local taxes.
Calculation:
The calculation starts with the distribution of taxable income as per defined slabs and calculates the corresponding rates.
The total tax liability is represented in the table below by the sum of tax owed per slab.
1. Federal Income Tax Calculation (2025)
| Income Bracket | Tax Rate | Tax Owed in Bracket |
| $0 – $23,850 | 10% | $2,385.00 |
| $23,851 – $96,950 | 12% | $8,766.00 |
| $96,951 – $206,700 | 22% | $24,068.78 |
| $206,701 – $250,000 | 24% | $10,406.40 |
| Total Federal Tax | $45,626.18 |
2. California Income Tax (2025)
| Income Bracket | Tax Rate | Tax Owed in Bracket |
| $0 – $21,512 | 1% | $215.12 |
| $21,513 – $50,998 | 2% | $589.70 |
| $50,999 – $80,490 | 4% | $1,175.64 |
| $80,491 – $111,732 | 6% | $1,874.46 |
| $111,733 – $141,212 | 8% | $2,358.32 |
| $141,213 – $250,000 | 9.3% | $10,140.71 |
| Total California Tax | $16,353.95 |
Combined Tax: Federal Tax + California State Income Tax
$45,626.18 + $16,353.95
= $61,980.13
Effective Tax Rate: Taxable Liability/Taxable Income
$61,980.13/ $250,000
~24.8%Interpretation: At $250,000 taxable income, tax filed jointly by a married couple is charged at approximately 25% in taxes as a sum of both Federal & State taxes. California Income Tax for the above income is $16,353.95.
What are the Deadlines and Extensions for Tax Filing in California?
Filing tax returns and payments due is on April 15th; it’s typically on the day after April 15th since 1955. Taxes have to be paid by April 15th. However, California allows a six-month automatic extension (October 15th) for filing with no special application.
Los Angeles was affected by a fire in January 2025, and those affected by the fire qualify for an extension of the deadline to October 15th for both payment and filing.
People who are traveling or residing outside the US must pay taxes by June 17th and have an automatic filing extension to December 15th.
Cut-Off for taxpayers who make estimated quarterly payments
- April 15th, 2025 1st Quarter
- June 16th, 2025 2nd Quarter
- September 15th, 2025 3rd Quarter
- January 15th, 2026 4th Quarter
Late payments invite penalties. It’s okay to file your taxes as per the extension, but the payment has to be completed on Tax Day.
Who has to Pay California Income Tax?
- Residents of California: If you spend over 9 months in California, you are liable to adhere to California State Taxes
- Part-Year Residents: Even if you relocate, you are taxable as per California State Tax for the months you spend in the state. Click here for details on the California Exit Tax.
- People who have a California Income Source: If you earn a wage through remote work, rent, or any form of income out of the state, your income is taxable as per California Income Tax, e.g., Entertainers, remote workers
How to Pay Income Taxes in California?
Navigate the Franchise Tax Board website (https://www.ftb.ca.gov/pay/index.html?WT.mc_id=akPayChoices).
Select the mode of payment. You can pay via check, money order, credit card, electronic funds withdrawal, or your bank account, or you can arrange a payment schedule.
You can achieve the quickest reimbursement and fewer mistakes when filing electronically.
Residents ought to submit one of the following: Form 540 2EZ or Form 540NR
Non-residents should submit Form 540NR
Other than the State income tax, California residents are due to pay Corporate Tax, Sales Tax, and Property Tax, depending on the nature of their income (Professional/business owner) and property ownership.
Conclusion
The tax environment in California is tricky and strict about deadlines; missing deadlines leads to penalties. You can delegate your Bookkeeping, Accounting, CFO, and Taxation needs to us. At Profitjets, we ensure you file your taxes accurately and promptly. Our 600+ customers are a testament to our proficiency with outsourced bookkeeping and accounting services, CFO services, and tax planning.
FAQs California State Income Tax Brackets and Rates
1. Are the tax rates in the state of California high?
Yes, California has one of the highest state income tax rates in the U.S., with the wealthiest individuals paying up to 13.3% just in state tax over and above federal tax.
2. How do the California Income Tax Rates compare with the Federal Tax Rates?
Example: Married and Filing Jointly(MFJ) Federal vs. California Rates
– Federal: Marginal goes up at 37% on income above $751,600.
– California: Marginal rates go up to 12.3%, plus an additional 1% surtax, for a total of 13.3% for income over $1 million.
(Navigate to Federal Income Tax Rates and California State Tax brackets & rates for Single Filers & Federal Income Tax Rates and California State Tax brackets & rates for married people filing jointly for details)
3. Who is liable to pay Income taxes in California?
California residents, Part-Year Residents, and individuals with California Income are liable to pay Income taxes in California.
