California State Taxes

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).

2025 California Individual Income Tax Rates  – Single or Married Filing Separately

$0 – $11,079	1%
$11,079 – $26,264	2% on income over $11,079 plus $110.79
$26,264 – $41,452	4% on income over $26,264 plus $414.49
$41,452 – $57,542	6% on income over $41,452 plus $1,022.01
$57,542 – $72,724	8% on income over $57,542 plus $1,987.41
$72,724 – $371,479	9.3% on income over $72,724 plus $3,201.97
$371,479 – $445,771	10.3% on income over $371,479 plus $30,986.19
$445,771 – $742,953	11.3% on income over $445,771 plus $38,638.27
$742,953 and more	12.3% on income over $742,953 plus $72,218.84

2025 California Individual Income Tax Rates  – Married Filing Jointly or Widow(er)

$0 – $22,158	1%
$22,158 – $52,528	2% on income over $22,158 plus $221.58
$52,528 – $82,904	4% on income over $52,528 plus $828.98
$82,904 – $115,084	6% on income over $82,904 plus $2,044.02
$115,084 – $145,448	8% on income over $1115,084 plus $3,974.82
$145,448 – $742,958	9.3% on income over $145,448 plus $6,403.94
$742,958 – $891,542	10.3% on income over $742,958 plus $61,972.37
$891,542 – $1,485,906	11.3% on income over $891,542 plus $77,276.52
$1,485,906 and more	12.3% on income over $1,485,906 plus $144,439.65

2025 California Individual Income Tax Rates  – Head of Household

$0 – $22,173	1%
$22,173 – $52,530	2% on income over $22,173 plus $221.73
$52,530 – $67,716	4% on income over $52,530 plus $828.87
$67,716 – $83,805	6% on income over $67,716 plus $1,436.31
$83,805 – $98,990	8% on income over $83,805 plus $2,401.65
$98,990 – $505,208	9.3% on income over $98,990 plus $3,616.45
$505,208 – $606,251	10.3% on income over $505,208 plus $41,394.72
$606,251 – $1,010,417	11.3% on income over $606,251 plus $51,802.15
$1,010,417 and more	12.3% on income over $1,010,417 plus $97,472.91

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 8.71%.

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 $5,953. Marin County has the highest average property tax at $10,481, while Modoc County is the lowest at $1,425.

California Property Tax

Highest	$10481
Median	$5953
Lowest	$1425

Yearly Cost Per Resident

California Tax Holidays

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

California Tax Relief

If you’re unable to pay your California income taxes, you’re not alone. Whether your tax debt is the result of financial hardship, unfiled tax returns, or business tax obligations, leaving it unresolved can lead to mounting penalties, accruing interest, and increasingly aggressive collection actions. The sooner you address your tax debt, the more options you may have for resolving it.

Fortunately, California offers several tax relief programs that may help you get back on track. Depending on your circumstances, you may qualify for a payment plan, an Offer in Compromise, temporary collection relief, or another resolution option. Taking action early can help you regain control of your finances while reducing the risk of liens, levies, wage garnishments, and other collection measures.

Understanding how California collects unpaid taxes—and the relief options that may be available—is the first step toward finding a solution and moving forward with confidence.

Common California State Tax Problems

How California Collects Tax Debt

If you don’t pay your California income taxes on time, the Franchise Tax Board (FTB) will send reminder letters and demand notices requesting immediate payment. An automatic lien will also be attached to your property the moment the tax is overdue.

Should your balance remain unpaid, or the notices go unanswered, the FTB will escalate enforcement actions, including garnishing your wages and levying your bank account(s).

Because penalties and interest continue to accrue until the balance is paid, addressing your tax debt as early as possible can help you avoid additional costs and more serious collection actions.

Billing notices sent to taxpayer

Automatic statutory lien attached to property

If not paid, case sent to collections

California State Tax Relief Options

California offers several tax relief options, including:

• Income Tax Payment Plans – If you can’t pay your California tax bill in full, you can apply for an installment agreement (payment plan). There is a $34 setup fee, and it can take up to 90 days to process. Your tax balance cannot exceed $25,000, and you must pay the balance within 60 months or less.
• Penalty Abatement – Individuals may be eligible for One-Time Penalty Abatement, but it is only applicable for tax years 2022 or later. Your abatement request must be made verbally or in writing (Form 2918), or through your MyFTB account.
• Offer in Compromise – For those facing extreme financial hardship, California may allow you to settle your tax debt for less through an Offer in Compromise. You can apply online or by mail.
• Delay of Payment – California allows for a one-time, 30-day delay of payment (interest will accrue) for those who cannot pay in full by the deadline date.

If you’re experiencing financial hardship and can’t pay your California income tax bill, contact the State of California Franchise Tax Board immediately to discuss payment options and potential alternatives to collection actions.

When to Seek Tax Relief Help

If you’re experiencing any of the following, it may be time to explore your tax relief options:

The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.

California Tax Relief FAQs

How do I set up a California payment plan?

If your tax bill is under $25,000 and you have filed all your required tax returns for the past 5 years, you may request a payment plan that will allow you to pay your balance over 60 months or less. You can apply online, by phone (800-689-4776), or submit a Payment Plan Request Form by mail. There is a $34 setup fee, and it may take up to 90 days to process your request.

What happens if I ignore California tax notices?

Ignoring notices from the California Franchise Tax Board (FTB) can result in additional penalties and interest, and your account being referred to Collections. Once that happens, the state may pursue collection actions such as wage garnishments, bank levies, tax liens, or other methods allowed by law. Responding to notices as early as possible can help you avoid more serious enforcement actions.

Can California garnish my wages for unpaid taxes?

Yes. If you have an unpaid California tax balance and do not make payment arrangements, the state may garnish your wages. Wage garnishment allows a portion of your paycheck to be withheld until the tax debt is paid in full or another resolution is reached.

Can California levy my bank account?

Yes. In certain situations, the FTB may levy your bank account to collect unpaid state taxes. A bank levy allows the state to seize funds from your account to satisfy an outstanding tax debt. Acting quickly after receiving collection notices may help you avoid this type of enforcement action.

How long does California have to collect back taxes?

Unlike the IRS and most other states, California has up to 20 years from the date of tax liability to collect back taxes. The state may pause or extend the collection period if you file for bankruptcy, enter into a payment plan, or move out of the state. If you fail to file or submit a fraudulent return, there is no collection time limit.

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