California State Taxes

Quick Tax Facts

Income Tax: 1% – 13.3%
State Sales Tax: 7.25%
Median Property Tax: $2,839

Overview

California is known for its beautiful weather, cultural diversity, and excellent schools. Although most consider it one of the top states in terms of quality of life, it’s ranked as one of the worst for the cost of living. Additionally, California has one of the highest individual income tax rates topping out at a whopping 13.3%. Even with property taxes locked in at low rates, the price of real estate makes the average payment one of the most expensive in the country.

California Income Tax

California has a graduated state income tax, which essentially means that the more you earn, the higher your income tax rate will be. Residents with annual incomes over $1 million are also subject to an additional 1% surcharge known as the Mental Health Services Tax. This puts California’s top tax rate at 13.3%.

Here are the current tax brackets by filing status and taxable income (Form 540, line 19).

2022 California Individual Income Tax Rates – Single or Married Filing Separately

$0 – $10,098	1%
$10,099 – $23,941	2% on income over $10,099 plus $100.99
$23,942 – $37,787	4% on income over $23,492 plus $377.85
$37,788 – $52,454	6% on income over $37,788 plus $931.69
$52,455 – $66,294	8% on income over $52,455 plus $1,811.71
$66,295 – $338,638	9.3% on income over $66,295 plus $2,918.91
$338,639 – $406,363	10.3% on income over $338,639 plus $28,246.90
$406,364 – $677,274	11.3% on income over $406,364 plus $35,222.58
$677,275 and more	12.3% on income over $677,275 plus $65,835.52

2022 California Individual Income Tax Rates – Married Filing Jointly or Widow(er)

$0 – $20,197	1%
$20,198 – $47,883	2% on income over $20,198 plus $201.98
$47,884 – $75,575	4% on income over $47,884 plus $755.70
$75,576 – $104,909	6% on income over $75,576 plus $1,863.38
$104,910 – $132,589	8% on income over $104,910 plus $3,623.42
$132,590 – $677,277	9.3% on income over $132,590 plus $5,837.82
$677,278 – $812,727	10.3% on income over $677,278 plus $56,493.80
$812,728 – $1,354,549	11.3% on income over $812,728 plus $70,445.15
$1,354,550 and more	12.3% on income over $1,354,550 plus $131,671.04

2022 California Individual Income Tax Rates – Head of Household

$0 – $20,211	1%
$20,212 – $47,886	2% on income over $20,212 plus $202.12
$47,887 – $61,729	4% on income over $47,887 plus $755.62
$61,730 – $76,396	6% on income over $61,730 plus $1,309.34
$76,397 – $90,239	8% on income over $76,397 plus $2,189.36
$90,240 – $460,546	9.3% on income over $90,240 plus $32,96.80
$460,547 – $552,657	10.3% on income over $460,547 plus $37,735.35
$552,658 – $921,094	11.3% on income over $552,658 plus $47,222.78
$921,095 and more	12.3% on income over $921,095 plus $88,856.16

There are three different income tax forms available: Form 540, Form 540 2EZ, and Form 540 NR. Which form you use will depend on your residency and filing status, as well as your taxable income.

Who Must File?

Residents (full- or part-time) and non-residents who conduct business in California are required to file an income tax return if they meet the income thresholds for the given tax year. Residents (full- and part-time) must also pay taxes on all income earned (inside and outside of the state) while a resident of California.

If you are a resident who also pays taxes in another state, you may be eligible to claim an Other State Tax Credit. Under certain circumstances, you may also qualify as a non-resident under safe harbor if you spent time in a different state for employment reasons.

California Sales Tax

California has a statewide sales tax rate of 7.25%, which includes the base rate of 6% plus the mandatory local rate of 1.25%. Additionally, some cities and counties impose local sales taxes of up to 3.5%, making the total tax as high as 10.75% in some areas. California has one of the highest combined average sales tax rates in the country at 8.82%.

California Property Taxes

California property tax rates have remained low due to Proposition 13, a law approved in 1978. Under this law, general property taxes are limited to 1% of a property’s market value. This does not include, however, taxes collected for special purposes at the local level. Additionally. the assessed value cannot increase by more than 2% annually. You can also claim an exemption (valued at $7,000) on your primary residence, saving you $70 per year.

Property taxes vary by county and are set by the local property tax assessor. The median property tax in California is $2,839. Marin County has the highest average property tax at $5,500, while Modoc County is the lowest at $953.

California Property Tax
Highest	$5500
Median	$2839
Lowest	$953

Yearly Cost Per Resident

California Tax Holidays

There are no tax holidays scheduled in California at this time.

California Tax Resources

If you need assistance preparing your California state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the California Tax Service Center for additional resources.

California Income Tax Forms and Publications
Payment Options
Tax Information/Refund/Forms: 1-800-338-0505
Important Tax Dates

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