California has the most progressive income tax of any state — nine brackets running from 1% to 12.3%, plus a 1% mental-health surcharge on income over $1 million that lifts the effective top rate to 13.3%, the highest in the nation. Here is how the brackets work for 2026, who pays what, and an important note on indexing.
A Note on 2026 Figures
California’s Franchise Tax Board (FTB) indexes its brackets and deductions annually to California inflation. FTB announced the 2026 figures in its October 2026 Tax News: California inflation from June 2025 to June 2026 was 3.4%, and every bracket threshold, the standard deduction and the exemption credits rose by about that much. The rates themselves do not change. These are the brackets for income you earn in 2026 and report on the return you file in 2027; your 2025 return uses the 2025 brackets.
California Tax Brackets (Single Filers) — 2026 Schedule X
These are the marginal rates — each rate applies only to income within that band.
| Taxable income (single) | Marginal rate |
|---|---|
| $0 – $11,456 | 1.0% |
| $11,456 – $27,157 | 2.0% |
| $27,157 – $42,861 | 4.0% |
| $42,861 – $59,498 | 6.0% |
| $59,498 – $75,197 | 8.0% |
| $75,197 – $384,109 | 9.3% |
| $384,109 – $460,927 | 10.3% |
| $460,927 – $768,213 | 11.3% |
| Over $768,213 | 12.3% |
Married-filing-jointly thresholds are roughly double the single amounts (for example, the 9.3% band starts at $150,394 for joint filers), and head-of-household thresholds fall in between.
The 1% Mental Health Surcharge (Now the Behavioral Health Services Tax)
On top of the brackets above, California adds 1% on taxable income over $1,000,000 — originally the Mental Health Services Tax, now referred to as the Behavioral Health Services Tax. This applies the same way to all filing statuses (the $1M threshold is not doubled for joint filers). Combined with the 12.3% top bracket, this produces California’s well-known 13.3% top marginal rate.
Standard Deduction
California’s standard deduction is far smaller than the federal one. For 2026 it is:
- $5,900 for single and married-filing-separately filers (up from $5,706 in 2025)
- $11,800 for married filing jointly, head of household, and qualifying surviving spouse (up from $11,412)
(Source: California FTB.) If your itemized deductions exceed these amounts, you itemize on Schedule CA instead.
A Worked Example
Consider a single filer with $120,000 of California taxable income (after the standard deduction). The tax stacks bracket by bracket:
- 1% of $11,456 = $114.56
- 2% of $15,701 = $314.02
- 4% of $15,704 = $628.16
- 6% of $16,637 = $998.22
- 8% of $15,699 = $1,255.92
- 9.3% of ($120,000 − $75,197 = $44,803) = $4,166.68
- Total California tax ≈ $7,478
That is an effective rate of about 6.2%, even though the filer’s marginal rate is 9.3%. This gap between marginal and effective rate is a frequent point of confusion — only the last dollars are taxed at 9.3%.
How California Taxes Capital Gains
Unlike the federal system, California has no preferential rate for long-term capital gains. Gains are taxed as ordinary income at the same brackets above, up to 13.3%. This is a major consideration for anyone selling stock, RSUs, or real estate while a California resident.
Who Should Pay Attention
- High earners crossing the $1M line should factor in the extra 1% surcharge.
- Remote and relocating workers should remember California can tax income sourced to the state even after you move; trailing income like vested RSUs may still be partly California-taxable.
- Retirees benefit from one bright spot: California does not tax Social Security benefits, though it taxes other retirement income at ordinary rates.
To estimate your own California liability — including the surcharge and the latest standard deduction — run the numbers through the state income tax calculator or review the dedicated California brackets page.