US Tax Tools

California Income Tax Rates 2025

California has a progressive income tax system with 10 brackets ranging from 1% to 13.3%. It has the highest top marginal rate of any US state, applying to income over $1,000,000.

Tax Type

Progressive

Rate Range

1% – 13.3%

Brackets

10

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California is only part of the equation — federal taxes apply too.

State Tax Ranking

#32 of 51 Moderate tax burden at $75,000 income

At $75,000 income (single filer), California ranks #32 out of 51 states — where #1 is the lowest tax burden.

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Tax at Different Income Levels

Income State Tax Effective Rate Take-Home
$50,000 $1,578 3.16% $44,551
$75,000 $3,517 4.69% $63,534
$100,000 $5,842 5.84% $80,709
$150,000 $10,492 6.99% $114,441
$200,000 $15,142 7.57% $147,791

Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).

2025 Tax Brackets — Single Filer

Taxable Income Rate
$0 – $10,756 1%
$10,756 – $25,499 2%
$25,499 – $40,245 4%
$40,245 – $55,866 6%
$55,866 – $70,612 8%
$70,612 – $360,659 9.3%
$360,659 – $432,787 10.3%
$432,787 – $721,314 11.3%
$721,314 – $1,000,000 12.3%
Over $1,000,000 13.3%

2025 Tax Brackets — Married Filing Jointly

Taxable Income Rate
$0 – $21,512 1%
$21,512 – $50,998 2%
$50,998 – $80,490 4%
$80,490 – $111,732 6%
$111,732 – $141,224 8%
$141,224 – $721,318 9.3%
$721,318 – $865,574 10.3%
$865,574 – $1,442,628 11.3%
$1,442,628 – $2,000,000 12.3%
Over $2,000,000 13.3%

Tax Overview

California has the highest top marginal state tax rate in the US at 13.3%, with progressive brackets starting at 1%. An additional 1% Mental Health Services Tax applies to incomes over $1 million. Despite high taxes, California's economy — tech, entertainment, agriculture — attracts top talent globally. Under OBBBA (2025+), the SALT deduction cap rose to $40,000 ($20,000 MFS) but phases out $1-for-$1 above $500,000 MAGI ($250,000 MFS) toward a $10,000 floor — so high-income California itemizers see only partial federal relief.

Tax Planning Tip

California's progressive brackets mean your effective rate is much lower than 13.3% for most earners. At $100,000, the effective state rate is approximately 5.8%. Consider maximizing 401(k) contributions and HSA to reduce California-taxable income.

California also imposes a 1% Mental Health Services Tax on taxable income over $1 million, which is included in the 13.3% top rate. The state does not tax Social Security benefits.

Property Tax & Cost of Living

Property Tax Rate
0.71%
$5,574/yr on $785,000 home
Cost of Living Index
139
39% above national average
Median Home Value
$785,000
Housing index: 196 (avg = 100)

Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.

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Frequently asked questions

What is California's income tax rate in 2025?

California has a progressive income tax with 10 brackets ranging from 1% to 13.3%. Your effective rate depends on your total taxable income.

Does California tax Social Security benefits?

California does not tax Social Security benefits at the state level.

What are California's income tax brackets for 2025?

California has 9 base brackets (1%, 2%, 4%, 6%, 8%, 9.3%, 10.3%, 11.3%, 12.3%) plus a 1% Mental Health Services surcharge on income over $1 million, making the effective top rate 13.3%. For single filers, the 1% rate applies to the first $10,756 of taxable income.

How does California's tax compare to Texas or Florida?

California has the highest state income tax rate in the US (13.3%), while Texas and Florida have no state income tax at all. However, Texas has higher property taxes and sales taxes than California. For a $100K earner, the difference in state income tax alone can be $4,000-$6,000 per year.

Does California tax capital gains differently?

No — California taxes capital gains as ordinary income at full state rates. There is no preferential state rate for long-term gains. This makes California particularly expensive for investors and those selling property or stock. Combined with the federal capital gains tax, California residents can face total rates above 33% on long-term gains.

What are California's sales and property tax rates?

California's base state sales tax is 7.25%, the highest in the US. With local additions, combined rates can exceed 10% in some areas. Property tax is capped at approximately 1% of assessed value under Proposition 13, but reassessment occurs upon sale or transfer, and supplemental assessments can increase the effective rate for new buyers.

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Last updated May 1, 2026 Tax year 2025-26

Data sources: IRS (irs.gov), Social Security Administration

This tool is general information only, not financial advice.

Reviewed by USTax Tools Editorial Desk

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