California Tax Calculator 2023-2024: Estimate Your Taxes

For example, if you earn less than $70,606 per year, your marginal rate in California will be no higher than 8%. Your federal tax withholding is determined by the information provided on your Form W-4. This form allows you to specify your filing status, number of dependents, and any additional amounts you’d like withheld.

IRA Deduction

The city of San Francisco levies a gross receipts tax on the payroll expenses of large businesses. Although this is sometimes conflated as a personal income tax rate, the city only levies this tax on businesses themselves. Although this is sometimes conflated as a personal income tax rate, the city only levies this tax on businesses.

California Salary Paycheck Calculator

1. View how much tax you may pay in other states based on the filing status and state entered above.
2. This means that regardless of where you are in the state, you will pay an additional 6.00% of the purchase price of any taxable good.
3. Some deductions are “post-tax”, like Roth 401(k), and are deducted after being taxed.
4. Among the products on which sales taxes are not required are most groceries, prescription medicine and utilities like gas and electricity.
5. This act is funded by a flat 1% on the portion of income that exceeds one million dollars per year.
6. The tax brackets are different for single and married filers but the percentage rates remain the same.

You may also have deductions for health insurance, retirement savings, and other benefits. California’s notoriously high top marginal tax rate of 13.3%, which is the highest in the country, only applies to income above $1 million for single filers and $2 million for joint filers. This top rate includes an additional 1% mental health services tax that is leveraged on income above $1 million. Generally, the state of California requires you to pay taxes if you are a resident or nonresident that receives income from a California source. The state income tax rates range from 1% to 12.3%, and the sales tax rate is 7.25% to 10.75%.

If you are thinking about using a mortgage to buy a home in California, check out our guide to California mortgage rates. Its base sales tax rate of 6.00% is higher than that of any other state, and its top marginal income tax rate of 12.3% is the highest state income tax rate in the country. The Golden State fares slightly better where real estate is concerned, though. The average homeowner pays just 0.71% of their actual home value in real estate taxes each year. Union workers, however, may see legal deductions that don’t fall in either of these categories if such deductions are authorized by your collective bargaining agreement. Besides federal income tax, Social Security and Medicare, California state income tax (1% to 13.3%) and State Disability Insurance (1.2%) are also deducted from your paychecks.

If I live in California but work in another state, how do I calculate my taxes?

1. Enter your employment income into our paycheck calculator above to estimate how taxes in California, USA may affect your finances.
2. So what makes California’s payroll system different from the systems you might have encountered in other states?
3. Your employer will take 6.2% for Social Security and 1.45% for Medicare.
4. While salaries vary widely based on position, the median household income in your state can give you a glimpse at the average salary a household is earning in your region.
5. As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not levy a state income tax.
6. For regular gasoline, there is a 68.1 cent per gallon excise tax.

If you take more allowances, you might get a smaller refund but you should get bigger paychecks. Conversely, if you always owe tax money come April, you may want to claim fewer allowances so that more money is withheld throughout the year. In California, these supplemental wages are taxed at a flat rate. Bonuses and earnings from stock options are taxed at a flat rate of 10.23%, while all other supplemental wages are taxed at a flat rate of 6.6%.

The Golden State’s income tax system is progressive, which means wealthy filers pay a higher marginal tax rate on their income. Cities in California levy their own sales taxes, but do not charge their own local income taxes. Besides taxes, there may be other items taken from your California paycheck depending on your employer tax income calculator california and personal choices. For example, if you enroll in a health insurance plan through your employer, part or all of the premium may be taken from each paycheck. If you participate in a retirement plan such as a 401(k) or an IRA, some or all of your contributions may be taken from each paycheck.

Visit our Forms and Publications search tool for a list of tax forms, instructions, and publications, and their available formats. We cannot guarantee the accuracy of this translation and shall not be liable for any inaccurate information or changes in the page layout resulting from the translation application tool. This Google™ translation feature, provided on the Franchise Tax Board (FTB) website, is for general information only.

Capital Gains Taxes

A state standard deduction exists and varies depending on your filing status. Though some of the withholding from your paycheck is non-negotiable, there are certain steps you can take to affect the size of your paycheck. If you choose to save more of each paycheck for retirement, for example, your take-home pay will go down.

This includes overtime, commission, awards, bonuses, payments for non-deductible moving expenses (often called a relocation bonus), severance and pay for accumulated sick leave. California is one of the few states to require deductions for disability insurance. This may seem like a drag, but having disability insurance is a good idea to protect yourself and your family from any loss of earnings you might suffer in the event of a short- or long-term disability. California provides property tax exemptions for homeowners, veterans, nonprofit and religious organizations, public schools, landlords and owners of qualifying personal property (such as certain artworks). PaycheckCity delivers accurate paycheck calculations to tens of millions of individuals, small businesses, and payroll professionals every year since 1999. If you are looking to refinance or purchase a property in California using a mortgage, check out our guide to mortgage rates and getting a mortgage in the Golden State.

Products that face separate tax rates include alcoholic beverages, tobacco products and gasoline. For alcohol and cigarettes, rates are assessed based on the quantity of the product purchased. For regular gasoline, there is a 68.1 cent per gallon excise tax. In our paycheck calculators, SUI is used to refer to the unemployment tax paid by the employee.

California also has additional state specific social security related taxes. Quickly figure your 2024 tax by entering your filing status and income. View how much tax you may pay in other states based on the filing status and state entered above.