What is California Income Tax? Rates & Tax Brackets

Updated for tax year 2025.

If you live or work in California, you’ll likely need to file a California state income tax return along with your federal return. California has a progressive income tax system with nine tax rates, so the amount you owe depends on your filing status and taxable income.

This guide explains California’s 2025 income tax rates and brackets, standard deduction, available exemptions and credits, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies California’s tax rules to help you accurately prepare your California return alongside your federal return.

What is the California state income tax?

California state income tax is a tax on income earned by individuals and certain businesses. It is collected by the California Franchise Tax Board (FTB) and helps fund state services.

Unlike states with a flat income tax, California uses a progressive tax system, meaning different portions of your taxable income are taxed at different rates. For tax year 2025, California uses nine income tax brackets ranging from 1% to 12.30%. California also imposes an additional 1% Mental Health Services Tax on taxable income over $1 million, which can bring the effective top rate to 13.3% on income above that threshold.

California income tax rates and tax brackets

To estimate your California tax bill or refund, it helps to understand the state’s income tax brackets. Here’s a look at the income tax brackets for the state of California based on filing status. Below is a look at the CA state income tax brackets broken down by filing status. Visit the State of California website to see additional tax brackets pertinent to taxpayers in the state.

Tax RateSingle or Married Filing SeparatelyMarried Filing Jointly or Surviving SpouseHead of Household1%$0 to $11,079$0 to $22,158$0 to $22,1732%$11,080 to $26,264$22,159 to $52,528$22,174 to $52,5304%$26,265 to $41,452$52,529 to $82,904$52,531 to $67,7166%$41,453 to $57,542$82,905 to $115,084$67,717 to $83,8058%$57,543 to $72,724$115,085 to $145,448$83,806 to $98,9909.30%$72,725 to $371,479$145,449 to $742,958$98,991 to $505,20810.30%$371,480 to $445,771$742,959 to $891,542$505,208 to $606,25111.30%$445,772 to $742,953$891,543 to $1,485,906$606,252 to $1,010,41712.30%Over $742,953Over $1,485,906Over $1,010,417

If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes.

California standard deduction

Single filers and those married filing separately are eligible to claim a standard deduction of $5,706 for tax year 2025. The standard deduction amount for those filing as head of household, married filing jointly, or qualifying surviving spouse is $11,412.

California’s standard deduction amounts are lower than the federal standard deduction. If someone else can claim you as a dependent on their return, your California standard deduction may be limited. You may claim the California standard deduction or itemize on your California return, depending on which option gives you the better result under California rules.

California exemptions

California does not use a traditional personal exemption deduction the way some states do. Instead, California offers exemption credits that directly reduce your California tax. For tax year 2025, the personal exemption credit is $153 for single filers, married filing separately, and head of household filers, and $306 for married filing jointly and qualifying surviving spouses.

California also allows a dependent exemption credit of $475 for each qualifying dependent you claim on your California return. Credits may be reduced if federal AGI exceeds the phaseout thresholds above.

California tax changes for 2025

For tax year 2025, California’s basic progressive income tax rate structure remains in place with nine brackets ranging from 1% to 12.30%, plus the 1% Mental Health Services Tax on income over $1 million. California annually indexes many amounts for inflation, including tax brackets, the standard deduction, and exemption credits.

Compared with 2024, the 2025 California standard deduction increased to $5,706 for single and married filing separately filers and $11,412 for married filing jointly, head of household, and qualifying surviving spouse filers. Personal and dependent exemption credit amounts also increased for 2025. California does not automatically conform to all federal tax law changes, so some federal updates may not apply on your California return.

FAQs

Does California have a state income tax?

Yes, California has a state income tax. California uses a progressive tax system with nine income tax brackets for tax year 2025, rather than a single flat rate. High earners may also owe an additional 1% Mental Health Services Tax on taxable income over $1 million.

What is the California income tax rate?

California’s 2025 income tax rates range from 1% to 12.30%. The California income tax rate that applies to you depends on your taxable income and filing status. Taxpayers with taxable income over $1 million may also owe an additional 1% Mental Health Services Tax.

What are the California income tax brackets for 2025?

California has nine 2025 income tax brackets. For example, for single filers the brackets start at 1% on income up to $11,079 and go up to 12.30% on income of $742,953 or above. See the California income tax brackets table above for all filing statuses.

How does California state income tax work?

California state income tax works by taxing portions of your California taxable income at graduated rates. After you determine your filing status and taxable income, California applies the matching tax brackets. You may reduce your tax with the California standard deduction or itemized deductions, exemption credits, and other California tax credits.

Do I have to file a California state tax return?

You may need to file a California state tax return if you are a California resident, part-year resident, or nonresident with California-source income and you meet California’s filing requirements. Filing rules can depend on your income, residency status, and other factors, so check California Franchise Tax Board guidance for your situation.

What is the California standard deduction for 2025?

For 2025, the California standard deduction is $5,706 for single filers and married filing separately, and $11,412 for married filing jointly, head of household, and qualifying surviving spouses. Dependents claimed on another taxpayer’s return may have a lower standard deduction.

How much is California state income tax?

There isn’t one California state income tax amount that applies to everyone. How much California state income tax you owe depends on your taxable income, filing status, deductions, exemption credits, and other credits. Use the California income tax brackets above as a starting point, then factor in deductions and credits that apply to you.

Why is my California tax return different from my federal return?

California generally starts with federal income figures, but California has its own rules for deductions, credits, and adjustments that can make your California taxable income different from your federal return. California does not automatically conform to all federal tax law changes, including certain provisions of the Working Families Tax Cut Act (One Big Beautiful Bill or OBBB).

The good news is that our tax software automatically applies California’s current tax rules when preparing your state return, so you don’t have to calculate these differences yourself.

For more information, visit the California Franchise Tax Board. If you’d like to learn more about recent federal tax law changes, see our OBBB tax changes guide.

The bottom line

California has a progressive state income tax with nine 2025 tax rates ranging from 1% to 12.30%, plus an additional 1% tax on income over $1 million for some taxpayers. Knowing the California income tax brackets, standard deduction, and available exemption credits can help you estimate what you may owe — and what you may get back.

When you’re ready to file, TaxAct can help you prepare your federal and California returns in one place so you can file with confidence.

Already filed your taxes and waiting for your refund? Learn more about where your California state tax refund is.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.

Citations

California Franchise Tax Board. “Deductions.” Accessed 21 July 2026.California Franchise Tax Board. “Exemption credits.” Accessed 21 July 2026.California Franchise Tax Board. “2025 indexing.” Accessed 21 July 2026.California Franchise Tax Board. “Income tax rates.” Accessed 21 July 2026.TaxAct. “Working Families Tax Cuts Act: 2025 Tax Reform Explained.” TaxAct Blog.TaxAct. “Where Is My California Tax Refund?” TaxAct Blog, 2 Feb. 2026.

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