California Income Tax: 2023 Rates, Who Pays

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2023 California state income tax rates and brackets

There are nine California tax rates, ranging from 1% to 12.3%. Tax brackets depend on income, tax filing status, and state residency. California also levies a 1% mental health services tax on income exceeding $1 million.

The California tax rate schedules below show the state tax rates and tax brackets that apply to income earned in 2023 (reported on 2024 returns).

CA state income tax rates: Single or married filing separately

Tax rate	Taxable income bracket	Tax owed
1%	$0 to $10,412.	1% of taxable income.
2%	$10,413 to $24,684.	$104.12 plus 2% of the amount over $10,412.
4%	$24,685 to $38,959.	$389.56 plus 4% of the amount over $24,684.
6%	$38,960 to $54,081.	$960.56 plus 6% of the amount over $38,959.
8%	$54,082 to $68,350.	$1,867.88 plus 8% of the amount over $54,081.
9.3%	$68,351 to $349,137.	$3,009.40 plus 9.3% of the amount over $68,350.
10.3%	$349,138 to $418,961.	$29,122.59 plus 10.3% of the amount over $349,137.
11.3%	$418,962 to $698,271.	$36,314.46 plus 11.3% of the amount over $418,961.
12.3%	$698,272 or more.	$67,876.49 plus 12.3% of the amount over $698,271.

CA state income tax rates: Married filing jointly or qualifying widow(er)

Tax rate	Taxable income bracket	Tax owed
1%	$0 to $20,824.	1% of taxable income.
2%	$20,825 to $49,368.	$208.24 plus 2% of the amount over $20,824.
4%	$49,369 to $77,918.	$779.12 plus 4% of the amount over $49,368.
6%	$77,919 to $108,162.	$1,921.12 plus 6% of the amount over $77,918.
8%	$108,163 to $136,700.	$3,735.76 plus 8% of the amount over $108,162.
9.3%	$136,701 to $698,274.	$6,018.80 plus 9.3% of the amount over $136,700.
10.3%	$698,275 to $837,922.	$58,245.18 plus 10.3% of the amount over $698,274.
11.3%	$837,923 to $1,396,542.	$72,628.92 plus 11.3% of the amount over $837,922.
12.3%	$1,369,543 or more.	$135,752.98 plus 12.3% of the amount over $1,396,542.

CA state income tax rates: Head of household

Tax rate	Taxable income bracket	Tax owed
1%	$0 to $20,839.	1% of taxable income.
2%	$20,840 to $49,371.	$208.39 plus 2% of the amount over $20,839.
4%	$49,372 to $63,644.	$779.03 plus 4% of the amount over $49,371.
6%	$63,645 to $78,765.	$1,349.95 plus 6% of the amount over $63,644.
8%	$78,766 to $93,037.	$2,257.21 plus 8% of the amount over $78,765.
9.3%	$93,038 to $474,824.	$3,398.97 plus 9.3% of the amount over $93,037.
10.3%	$474,825 to $569,790.	$38,905.16 plus 10.3% of the amount over $474,824.
11.3%	$569,791 to $949,649.	$48,686.66 plus 11.3% of the amount over $569,790.
12.3%	$949,650 or more.	$91,610.73 plus 12.3% of the amount over $949,649.

Source: California Franchise Tax Board

2024 California income tax deadlines

California state income tax returns typically follow the federal tax deadline, which is April 15, 2024.

Taxpayers who can't file a return on time are given an automatic six-month extension until mid-October. However, if you owe taxes, you'll still need to submit an estimated payment to cover that bill by the regular tax deadline.

» MORE: Track the status of your state tax refund.

Do I have to pay California state tax?

Generally, you have to file a California state tax return if you’re a resident, part-year resident or nonresident and:

You’re required to file a federal tax return.
You got income from a source in California during the tax year.
You have income above certain thresholds.

» MORE: See what federal tax bracket you’re in

What is California's standard deduction?

The 2023 California standard deduction for tax returns filed in 2024 is $5,363 (single or married filing separately) and $10,726 (married filing jointly, qualifying widow/er or head of household).

» MORE: Learn about the federal standard deduction and when to take it

What part of my income gets taxed by California?

When it comes to California state tax, there are three residency statuses: resident, part-year resident and nonresident. They determine what portion of your income the state will tax.

If your California residency type is ...	California taxes this part of your income
Resident.	All income from all sources inside and outside California.
Part-year resident.	All income received while a resident, plus income from California sources while a nonresident.
Nonresident.	Income from California sources.

» Need help? How to find a tax preparer near you

Am I a resident for California state tax purposes?

Resident status rules

You’re a resident of California for tax purposes if your presence in California wasn’t temporary or transitory in purpose. Generally, you’re a resident if you lived in California, even if you were temporarily out of state.

Here are some examples of situations that can make you a California resident for tax purposes, according to the state:

You spend more than nine months in California during the tax year.
Your employer assigns you to an office in California for a long or indefinite period.
You decide to check out California for a while, with no real plans to leave.
You’re in California for an indefinite period to recuperate from an illness.

Students from California who go to college out of state do not automatically become nonresidents. Likewise, attending school in California doesn’t automatically make a student a California resident. The California Franchise Tax Board's website has the rules on how California determines residency status.

Part-year resident status rules

Generally, you’re a part-year resident of California if you were a nonresident for some of the tax year. This is often the case for people who moved to California from another state.

If you’re a part-year resident, you pay California state tax on all income you received during the part of the tax year you were a resident of California, plus state income tax on income just from California sources while you were a nonresident.

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Nonresident status rules

Nonresidents still may have to pay California state tax on income they receive from California sources. This means you may need to file a California state tax return even if you live in another state but made money from California-related things such as:

Services performed in California.
Rent from real estate you own in California.
The sale or transfer of real estate in California.
Income from a California business, trade or profession.

In some cases, you might be a nonresident for tax purposes even if you live in California but you were out of state for at least 546 consecutive days because of an employment-related contract.

However, that exception won’t apply if you had more than $200,000 of intangible income while the employment-related contract was in effect, were in California for more than 45 days during the tax year, or if the state thinks the point of your absence is to evade state income taxes.

California state tax credits

Tax credits are a type of tax benefit that decreases your taxes owed by the credit amount. Some credits may also be refundable, meaning if the credit amount exceeds how much you owe in taxes, you might be able to get the overage back in the form of a refund.

Note: Here is an overview of a few popular tax credits that were available in California for the 2022 tax year (taxes filed in 2023). We'll update this section with tax breaks for the upcoming season when new information becomes available.

California earned income tax credit (CalEITC)

The CalEITC is a tax benefit that mirrors the federal earned income tax credit. Californians with earned income and federal AGI up to $30,000 in 2022 may have been eligible for a tax credit of up to $3,417. The exact credit amount depends on your filing status and the number of qualifying children. (People without kids also qualify.)

California young child tax credit (YCTC)

The refundable young child tax credit is another state-level tax credit modeled after the federal version of the child tax credit. People who qualify for the California earned income tax credit mentioned above and who also had a child younger than 6 by the end of the 2022 tax year were generally eligible for the YCTC. The maximum credit for 2022 was $1,083. The credit begins to phase out for those with an earned income of $25,000 and above and was not available for anyone making above $30,000.

California child and dependent care tax credit

The state of California also offers a nonrefundable tax credit for people who may have expenses related to the care of a child, a spouse or another type of dependent. Similar to the federal child and dependent care tax credit, eligible taxpayers can claim a certain limited percentage of their expenses on their state tax returns. For more details about who qualifies as dependent, see the Instructions for Form FTB 3506 on the California Franchise Tax Board’s website.

California adoption cost tax credit

To help offset the costs associated with adoption, California offers a tax credit that can help cover up to 50% of certain adoption-related expenses. The maximum you can claim for the credit is $2,500 per child per tax year, but the remaining amounts can be claimed on tax returns in future years. Typical expenses covered by the credit include travel, unreimbursed medical costs, and other adoptions and agency fees. The child must have been adopted from California.

California nonrefundable renters tax credit

If your income fell below a certain threshold in 2022, you may have been able to claim a nonrefundable tax credit for having paid your rent for at least half of the year (six months). Those who are single/married filed separately and made $49,220 or below can qualify for a $60 credit, and those who are head of household, married filing jointly or qualified widow/er with an income at or below $98,440 can qualify for double, at a total of $120.

» MORE: 20 popular federal income tax breaks to know about

California sales tax

California's sales tax rate is 7.25%. Many cities and counties also assess a local tax, which can bump the total sales tax up to 10.75% in some areas.

According to the California Tax Service Center, retail sales of physical items are subject to sales tax. Groceries, prescription drugs, and certain items paid for with food stamps are exempt from sales tax.

» Dive deeper: Use our sales tax calculator to estimate how much you tax might owe on purchases

6 things to know about California state tax

California’s tax filing deadline generally follows the federal tax deadline, but there were exceptions in 2023 for 2022 taxes.
Tax software will do your state taxes (though sometimes for an extra fee).
Wondering "Where is my California state tax refund?" Good news: You can check the status of your state tax refund online.
If you can’t pay your California state tax bill on time, you can request a one-time, 30-day delay.
If you can’t afford your tax bill and you owe less than $25,000, California offers payment plans. Typically, you get three to five years to pay your bill. There’s a fee to set up an agreement.
You can also apply for the state’s offer in compromise program, which might allow you to pay less than you owe.

I have a solid grasp of California state income tax rates and brackets, residency statuses affecting tax liabilities, and key deductions and credits available in the state. The information I'm about to provide encompasses various concepts mentioned in the article.

California State Income Tax Rates and Brackets

In California, there are nine tax rates ranging from 1% to 12.3%, applicable based on income, filing status, and residency. The tax rates vary for individuals filing as single, married filing jointly, married filing separately, and head of household. The rates escalate as income levels increase within each bracket.

Mental Health Services Tax

California also imposes a 1% mental health services tax on income exceeding $1 million. This additional levy affects high-income earners in the state.

Residency Status and Tax Implications

California classifies residents into three categories: residents, part-year residents, and nonresidents. Each status determines the portion of income subject to California taxation:

Residents are taxed on all income from sources inside and outside California.
Part-year residents are taxed on income received while residing in California and on California source income when nonresident.
Nonresidents are taxed only on income derived from California sources.

Standard Deduction and Taxable Income

The standard deductions for 2023 in California are $5,363 for single filers or those married filing separately and $10,726 for married filing jointly, qualifying widow(er), or head of household. This deduction reduces taxable income for eligible taxpayers.

Determining Residency for Tax Purposes

California uses specific criteria to ascertain residency status. Staying in California for over nine months during the tax year or having an assigned long-term employment in the state are some factors establishing residency. Temporary absences might not alter residency status.

Tax Credits in California

The state offers various tax credits to eligible taxpayers, such as:

California Earned Income Tax Credit (CalEITC) for qualifying individuals with earned income and federal AGI up to $30,000.
Young Child Tax Credit (YCTC) for those eligible for CalEITC and having a child younger than 6.
Child and Dependent Care Tax Credit for eligible expenses related to dependent care.
Adoption Cost Tax Credit covering adoption-related expenses up to $2,500 per child.
Nonrefundable Renters Tax Credit based on income and rent paid during the tax year.

Sales Tax in California

The standard sales tax rate in California is 7.25%, but local taxes can elevate it to 10.75% in certain areas. Exemptions apply to groceries, prescription drugs, and some items paid for with food stamps.

Additional California Tax Insights

California tax filing deadlines typically align with federal deadlines. Tax software can assist in filing state taxes, and online platforms allow tracking state tax refunds. Payment plans and offer in compromise programs are available for taxpayers facing difficulties in paying their state tax bills.

Understanding these concepts can significantly impact how individuals file and plan their taxes in California.

California Income Tax: 2023 Rates, Who Pays - NerdWallet (2024)