California Tax Brackets Guide – California has one of the most progressive state income tax systems in the U.S., with nine marginal tax brackets ranging from 1% to 12.3%. If you live or work in California, understanding the California tax brackets for 2025 (the tax year you’re filing in 2026) is essential for accurate tax planning, estimating your liability, and avoiding surprises.
This guide uses the official 2025 California Tax Rate Schedules from the Franchise Tax Board (FTB) and covers everything U.S. taxpayers need to know—from current brackets by filing status to how marginal rates work, the extra 1% Behavioral Health Services Tax (BHST), and practical tips.
What Are California Tax Brackets?
California tax brackets determine how much state income tax you owe based on your taxable income after deductions and exemptions. The system is marginal, meaning only the income within each bracket is taxed at that rate. Lower portions of your income are taxed at lower rates.
Brackets are adjusted annually for inflation and differ by filing status: Single/Married Filing Separately, Married Filing Jointly/Qualifying Surviving Spouse, and Head of Household. Use the FTB’s online tax calculator or the tax table for income under $100,000; use the rate schedules for higher amounts.
2025 California Income Tax Brackets by Filing Status
Here are the official 2025 California tax brackets (for income earned in 2025, filed in 2026). These apply to Form 540, line 19 (taxable income).
Single or Married/RDP Filing Separately (Schedule X)
| Tax Rate | Taxable Income Bracket | Tax Calculation Formula |
|---|---|---|
| 1% | $0 – $11,079 | 1% of taxable income |
| 2% | $11,080 – $26,264 | $110.79 + 2% of amount over $11,079 |
| 4% | $26,265 – $41,452 | $414.49 + 4% of amount over $26,264 |
| 6% | $41,453 – $57,542 | $1,022.01 + 6% of amount over $41,452 |
| 8% | $57,543 – $72,724 | $1,987.41 + 8% of amount over $57,542 |
| 9.3% | $72,725 – $371,479 | $3,201.97 + 9.3% of amount over $72,724 |
| 10.3% | $371,480 – $445,771 | $30,986.19 + 10.3% of amount over $371,479 |
| 11.3% | $445,772 – $742,953 | $38,638.27 + 11.3% of amount over $445,771 |
| 12.3% | $742,954 and over | $72,219.84 + 12.3% of amount over $742,953 |
Married/RDP Filing Jointly or Qualifying Surviving Spouse (Schedule Y)
| Tax Rate | Taxable Income Bracket | Tax Calculation Formula |
|---|---|---|
| 1% | $0 – $22,158 | 1% of taxable income |
| 2% | $22,159 – $52,528 | $221.58 + 2% of amount over $22,158 |
| 4% | $52,529 – $82,904 | $828.98 + 4% of amount over $52,528 |
| 6% | $82,905 – $115,084 | $2,044.02 + 6% of amount over $82,904 |
| 8% | $115,085 – $145,448 | $3,974.82 + 8% of amount over $115,084 |
| 9.3% | $145,449 – $742,958 | $6,403.94 + 9.3% of amount over $145,448 |
| 10.3% | $742,959 – $891,542 | $61,972.37 + 10.3% of amount over $742,958 |
| 11.3% | $891,543 – $1,485,906 | $77,276.52 + 11.3% of amount over $891,542 |
| 12.3% | $1,485,907 and over | $144,439.65 + 12.3% of amount over $1,485,906 |
Head of Household (Schedule Z)
| Tax Rate | Taxable Income Bracket | Tax Calculation Formula |
|---|---|---|
| 1% | $0 – $22,173 | 1% of taxable income |
| 2% | $22,174 – $52,530 | $221.73 + 2% of amount over $22,173 |
| 4% | $52,531 – $67,716 | $828.87 + 4% of amount over $52,530 |
| 6% | $67,717 – $83,805 | $1,436.31 + 6% of amount over $67,716 |
| 8% | $83,806 – $98,990 | $2,401.65 + 8% of amount over $83,805 |
| 9.3% | $98,991 – $505,208 | $3,616.45 + 9.3% of amount over $98,990 |
| 10.3% | $505,209 – $606,251 | $41,394.72 + 10.3% of amount over $505,208 |
| 11.3% | $606,252 – $1,010,417 | $51,802.15 + 11.3% of amount over $606,251 |
| 12.3% | $1,010,418 and over | $97,472.91 + 12.3% of amount over $1,010,417 |
Note: These brackets are for 2025 and will be inflation-adjusted for future years. Always check the latest FTB schedules.
How California Tax Brackets Work: Marginal Tax Explained?
Only the income that falls into each bracket is taxed at that rate. Example: A single filer with $80,000 taxable income pays:
- 1% on the first $11,079
- 2% on the next portion up to $26,264
- And so on, up to 8% on the amount between $57,543 and $72,724, plus 9.3% on the rest.
This progressive structure means your effective tax rate is lower than your top marginal rate.
Additional 1% Behavioral Health Services Tax (BHST) on High Incomes
California imposes an extra 1% tax (formerly the Mental Health Services Tax under Proposition 63, now updated as the Behavioral Health Services Tax) on taxable income over $1 million. This is separate from the regular brackets and applies regardless of filing status. It can push the top effective rate to 13.3% for the highest earners.
California vs. Federal Tax Brackets (Quick Comparison)
California’s top rate (12.3% + 1% BHST) is the highest in the nation, while federal brackets for 2025 top out at 37%. Most Californians pay both federal and state taxes. State taxes are deductible on your federal return (subject to the $10,000 SALT cap).
Factors That Affect Your California Taxable Income
- Deductions: Standard deduction or itemized (CA has its own rules and does not fully conform to federal).
- Credits: California offers credits like the Earned Income Tax Credit (EITC), Child and Dependent Care Credit, and Renter’s Credit.
- Exemptions: Personal exemptions are suspended at the state level, but other adjustments apply.
- Residency: Part-year residents prorate income; non-residents tax only CA-source income.
Use the FTB tax calculator for a quick estimate.
How to Calculate and File Your California Taxes?
- Determine taxable income (Form 540, line 19).
- Use the tax table (if ≤ $100,000) or rate schedule.
- Add any BHST if applicable.
- Subtract credits and payments.
- File by April 15, 2026 (or request an extension).
E-file for fastest refunds. The FTB offers a free online calculator at ftb.ca.gov.
Tax Planning Tips for California Residents
- Maximize deductions and credits early.
- Consider retirement contributions (401(k), IRA) that reduce taxable income.
- Bunch itemized deductions if near the SALT cap.
- High earners: Explore tax-advantaged investments or timing income/expenses.
- Consult a tax professional—California tax law is complex and changes yearly.
California Tax Brackets Change Annually—Stay Updated
Brackets are indexed for inflation. The 2025 figures above are current as of the latest FTB publications. For 2026 brackets, check back on ftb.ca.gov later in the year.
Official Resources:
- FTB Tax Rate Schedules (2025): ftb.ca.gov/forms/2025/2025-540-tax-rate-schedules.pdf
- Tax Calculator & Tables: ftb.ca.gov/file/personal/tax-calculator-tables-rates.asp
Understanding your California tax brackets helps you plan smarter and keep more of your hard-earned money. Bookmark this guide and verify with the FTB for your specific situation every tax season.