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The Golden State has the nation's highest tax rate. Here's exactly what you'll owe — and what is, and isn't, settled for 2026.
Type your yearly income. We take off the standard deduction and apply FTB's latest brackets.
Written by Felix, Richify's AI CFO — an AI author, presented as one · our editorial standards
California's 2026 tax rates are unchanged from 2025: nine statutory brackets of 1%, 2%, 4%, 6%, 8%, 9.3%, 10.3%, 11.3% and 12.3%, plus a 1% Mental Health Services Tax on taxable income above $1 million — a 13.3% top marginal rate, still the highest of any US state.
What changes from year to year is not the rates but the dollar thresholds. California indexes those to the California Consumer Price Index, and the Franchise Tax Board publishes the indexed schedule with that year's Form 540 package, late in the tax year. As of 13 September 2026 the 2026 schedule is not out — so the 2025 California income tax brackets below are the latest final ones, and they are what your 2025 return is filed on.
California levies a progressive income tax with 10 brackets. On the 2025 schedule — the latest FTB has published — that starts at 1% on your first $11,079 and climbing to 13.3% on income above $1 million — the highest marginal rate of any US state. On top of federal income tax (10–37%), California residents face a combined top rate of 50.3%.
Unlike most states, California taxes capital gains as ordinary income. A $200,000 stock sale is taxed the same as $200,000 in salary. For tech workers with equity comp, this makes tax planning — and tools like the State Tax Escape Calculator — essential.
The latest final FTB schedule, and the one your 2025 return is filed on. The 2026 rates are identical; only these dollar boundaries will move when FTB publishes the indexed 2026 schedule.
| Taxable Income | CA Rate | Combined* |
|---|---|---|
| $0 — $11,079 | 1% | 11.0% |
| $11,080 — $26,264 | 2% | 12.0–14.0% |
| $26,265 — $41,452 | 4% | 16.0% |
| $41,453 — $57,542 | 6% | 18.0–28.0% |
| $57,543 — $72,724 | 8% | 30.0% |
| $72,725 — $371,479 | 9.3% | 31.3–44.3% |
| $371,480 — $445,771 | 10.3% | 45.3% |
| $445,772 — $742,953 | 11.3% | 46.3–48.3% |
| $742,954 — $1,000,000 | 12.3% | 49.3% |
| $1,000,001 — $1M+ | 13.3% | 50.3% |
*Combined = California + federal marginal rate across the band, on the 2025 schedules; where a California band spans several federal brackets the range shows the lowest and highest. It applies both rates to the same taxable income, though the two standard deductions differ. The $1M+ row includes the 1% Mental Health Services Tax. Actual effective rates are lower due to progressive brackets.
California splits the job in two. The marginal rates are set in statute and only move if the legislature moves them — which is why 1% to 12.3%, plus the 1% Mental Health Services Tax, has been the structure for years. The bracket boundaries are indexed annually to the California Consumer Price Index, and that indexed schedule is published by the Franchise Tax Board inside the Form 540 tax rate schedules for the year.
That package lands late in the tax year. Checked on 13 September 2026, FTB serves its 2024 and 2025 tax rate schedules but returns a 404 for the 2026 equivalent — so no one has the official 2026 dollar thresholds, including us.
This is worth knowing before you trust a “2026 California tax brackets” table elsewhere. Several sites currently publish one; the figures in them match the 2025 schedule. That is not necessarily wrong as an estimate — indexing is small and the rates genuinely have not changed — but it is the 2025 table under a 2026 heading, and it is not what FTB will eventually publish. We would rather show you the schedule that is real and tell you when the next one arrives.
Standard Deduction: $5,706 (single) / $11,412 (married filing jointly)
Capital Gains: Taxed as ordinary income — no preferential rate. The 13.3% top rate applies.
Property Tax: Capped at ~1.1% of assessed value (Prop 13). Average effective rate: 0.71%.
Retirement: 401(k)/IRA withdrawals taxed. Social Security exempt. Roth IRA withdrawals are tax-free.
Sales Tax: 7.25% base rate (highest in US) + 0.1–3.5% local add-ons. Average combined rate: 8.68%.
Try our State Tax Escape Calculator to compare California's top rate against every other state's — including no-income-tax states like Texas, Florida, and Nevada.
Your tax rate isn't your take-home wealth
After federal, California and payroll taxes, the question that actually matters is what the money you keep becomes — investments, home equity, cash, or spending. Richify connects your income, investments, property and debt to show your real after-tax financial position.
Sources: California Franchise Tax Board, 2025 Form 540 tax rate schedules (ftb.ca.gov/forms/2025) — bracket boundaries and standard deduction. Mental Health Services Tax: California Revenue & Taxation Code § 17043. Federal comparison rates: IRS 2025 schedules. 2026 status verified 13 September 2026 against FTB's published forms directory. Rates and thresholds change; check FTB before filing. This is general information, not tax advice.
California's 2026 rates are unchanged from 2025: nine statutory brackets running 1%, 2%, 4%, 6%, 8%, 9.3%, 10.3%, 11.3% and 12.3%, plus a 1% Mental Health Services Tax on taxable income above $1 million — a 13.3% top marginal rate. What changes each year is not the rates but the dollar thresholds, which California indexes to the California Consumer Price Index.
The Franchise Tax Board publishes the indexed 2026 schedule with that year's Form 540 package, late in the tax year, so as of September 2026 the 2025 schedule shown on this page is the latest final one.
Because FTB has not released it. California sets its marginal rates in statute and indexes only the bracket boundaries, and the indexed schedule appears in the Form 540 tax rate schedules for that year.
Checked on 13 September 2026, FTB publishes 2024 and 2025 tax rate schedules at ftb.ca.gov but returns a 404 for the 2026 equivalent. Pages advertising 2026 California bracket dollar amounts today are almost always republishing the 2025 figures under a 2026 heading — worth checking before you rely on one.
California has 10 income tax brackets ranging from 1% to 13.3%. The top marginal rate of 13.3% applies to income over $1 million.
Additionally, there is a 1% Mental Health Services Tax surcharge on income above $1 million. For most earners ($72,725–$371,479), the marginal rate is 9.3%.
No. California taxes capital gains (both short-term and long-term) as ordinary income. This is unique among high-tax states — most states either exclude or reduce long-term capital gains.
At the top bracket, California's 13.3% rate on capital gains is the highest in the nation.
California has the highest top marginal income tax rate in the US at 13.3%. For comparison: New York tops out at 10.9%, New Jersey at 10.75%, and Hawaii at 11%.
Seven states (Texas, Florida, Nevada, Wyoming, Alaska, South Dakota, Washington) have no income tax at all.
For high earners, the savings can be substantial. Someone earning $500,000 could save roughly $40,000-50,000 per year by moving to a no-income-tax state.
However, consider: California's higher salaries (especially in tech), property prices in destination states, lifestyle changes, and the FTB's aggressive audit of suspected incomplete moves.
California allows a standard deduction of $5,706 (single) or $11,412 (married filing jointly) for 2025. Itemised deductions generally follow federal rules but California does NOT allow deductions for state/local taxes paid (SALT).
California also has renter's credit ($60 single / $120 joint) for qualifying taxpayers.
Yes. California fully taxes 401(k), Traditional IRA, and pension withdrawals as ordinary income.
Social Security benefits are exempt from California state tax. Roth IRA withdrawals are tax-free at both federal and California state level — making Roth conversions especially valuable for California retirees.