California Tax Rates 2025 Guide – California remains one of the highest-tax states in the U.S., but its progressive income tax system, combined with Proposition 13 protections on property taxes and varying local sales taxes, creates a unique landscape for residents, homeowners, and businesses. Whether you’re a California taxpayer filing your 2025 return in 2026, planning a move, or running a business in the Golden State, this comprehensive guide breaks down the latest official rates from the California Franchise Tax Board (FTB) and other trusted sources.
All figures reflect 2025 tax year rules (income earned in 2025, filed by April 15, 2026). Rates are inflation-adjusted annually, and there were no major statutory rate hikes in 2025—only standard indexing.
California State Income Tax Rates 2025
California uses a progressive income tax system with nine marginal tax brackets ranging from 1% to 12.3%. An additional 1% Behavioral Health Services Tax (formerly Mental Health Services Tax) applies to taxable income over $1 million, bringing the top effective rate to 13.3% for high earners.
Use the official FTB tax rate schedules for taxable income over $100,000 (lower incomes use the Tax Table). Here are the full 2025 brackets:
Single or Married/RDP Filing Separately (Schedule X)
- 1% on $0 – $11,079
- 2% on $11,080 – $26,264
- 4% on $26,265 – $41,452
- 6% on $41,453 – $57,542
- 8% on $57,543 – $72,724
- 9.3% on $72,725 – $371,479
- 10.3% on $371,480 – $445,771
- 11.3% on $445,772 – $742,953
- 12.3% on $742,954 and over (plus 1% Behavioral Health Services Tax if over $1M)
Married/RDP Filing Jointly or Qualifying Surviving Spouse (Schedule Y)
- 1% on $0 – $22,158
- 2% on $22,159 – $52,528
- 4% on $52,529 – $82,904
- 6% on $82,905 – $115,084
- 8% on $115,085 – $145,448
- 9.3% on $145,449 – $742,958
- 10.3% on $742,959 – $891,542
- 11.3% on $891,543 – $1,485,906
- 12.3% on $1,485,907 and over (plus 1% over $1M)
Head of Household (Schedule Z)
- 1% on $0 – $22,173
- 2% on $22,174 – $52,530
- 4% on $52,531 – $67,716
- 6% on $67,717 – $83,805
- 8% on $83,806 – $98,990
- 9.3% on $98,991 – $505,208
- 10.3% on $505,209 – $606,251
- 11.3% on $606,252 – $1,010,417
- 12.3% on $1,010,418 and over (plus 1% over $1M)
Pro Tip: Use the free FTB online tax calculator at ftb.ca.gov/tax-rates for exact computations.
California does not conform to all federal deductions or credits, so your state taxable income may differ from your federal AGI.
California Sales Tax Rates 2025
The statewide base sales and use tax rate is 7.25%. Local districts add between 0.10% and 2.00% (sometimes more than one district tax), so combined rates typically range from 7.25% to 10.75% or higher depending on location.
Rates are current as of April 1, 2026 updates and apply throughout 2025 filings where relevant:
- Los Angeles: 9.75%
- San Francisco: 8.625%
- San Diego: 7.75%
- Sacramento: 8.75%
- Fresno: 8.35%
Use the CDTFA’s rate lookup tool by address for your exact rate. Certain items (groceries, prescription drugs) are exempt from state tax but may still face local taxes.
California Property Tax Rates 2025
Thanks to Proposition 13 (passed in 1978), California property taxes are among the most predictable in the nation. The general levy is capped at 1% of the assessed value, plus voter-approved bonds and special assessments (often bringing the total effective rate to 1.1%–1.25% in many areas).
Key rules:
- Assessed value is based on the purchase price (or 1975–76 value for long-time owners) plus a maximum 2% annual inflation increase.
- Reassessment occurs only on change of ownership or new construction.
- No major changes for 2025—Prop 13 protections remain fully in effect.
Homeowners benefit from low effective rates compared to many other states, but new buyers pay taxes based on current market values.
California Corporate and Business Tax Rates 2025
- C Corporations (non-banks/financials): 8.84% on net income
- Banks and financial corporations: 10.84%
- S Corporations: 1.5% (3.5% for banks/financials) on net income
- Alternative Minimum Tax (AMT): 6.65% (for applicable C corps)
- Minimum Franchise Tax: $800 per year for most corporations and LLCs (due regardless of income)
LLCs also pay an annual LLC fee based on total gross receipts (ranging from $0 to $11,790+). Partnerships and sole proprietors generally pass through income to personal returns.
Major Tax Changes and Filing Deadlines for 2025
- Brackets and exemptions were adjusted upward by approximately 3% for inflation.
- No new statewide tax rate increases took effect in 2025.
- Filing deadline: April 15, 2026 (or October 15, 2026 with extension). Payments are still due April 15 to avoid penalties.
- E-filing and direct deposit are strongly recommended via FTB’s Web Pay or MyFTB portal.
How California Taxes Compare to the Rest of the USA?
California has the highest top marginal state income tax rate in the country (13.3% effective) and the second-highest state sales tax base (7.25%). However, its property taxes rank lower nationally due to Prop 13. Many high-income residents also face the federal 37% top bracket, making combined marginal rates exceed 50% in some cases.
Tips to Manage Your California Taxes in 2025
- Maximize California-specific credits (e.g., Earned Income Tax Credit, College Access Tax Credit).
- Consider itemizing if you have high state taxes or mortgage interest (subject to federal SALT cap of $10,000).
- Business owners: Explore S-corp election or strategic timing of income/expenses.
- Use FTB’s free tax calculator and consult a licensed California tax professional for complex situations.
Frequently Asked Questions About California Tax Rates 2025
What is the highest California state income tax rate in 2025?
12.3% plus 1% Behavioral Health Services Tax on income over $1 million (13.3% effective).
Does California have a flat tax?
No—California uses a graduated (progressive) income tax system.
How do I check my local sales tax rate?
Visit the CDTFA rate lookup tool or use the official city/county rates list.
Are property taxes going up in 2025?
Only by up to 2% annually under Prop 13 for existing owners; new purchases are reassessed at market value.
Do I need to file a California tax return if I live in another state?
Yes, if you have California-source income (e.g., wages from a CA employer or rental property).
Final Thoughts on California Taxes in 2025
California’s tax system funds robust public services but requires careful planning. By understanding the official 2025 brackets, sales tax variations, and Prop 13 protections, residents and businesses can minimize liabilities and avoid surprises. Always verify the latest details directly on ftb.ca.gov or cdtfa.ca.gov, as local rules can change.
For personalized advice, consult a CPA or enrolled agent familiar with California tax law. Stay compliant and make the most of available credits and deductions.