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).
| 2023 California Individual Income Tax Rates – Single or Married Filing Separately |
|---|
| $0 – $10,412 | 1% |
| $10,412 – $24,684 | 2% on income over $10,412 plus $104.12 |
| $24,684 – $38,959 | 4% on income over $24,684 plus $389.56 |
| $38,959 – $54,081 | 6% on income over $38,959 plus $950.56 |
| $54,081 – $68,350 | 8% on income over $54,081 plus $1,867.88 |
| $68,350 – $349,137 | 9.3% on income over $68,350 plus $3,009.40 |
| $349,137 – $418,961 | 10.3% on income over $349,137 plus $29,122.59 |
| $418,961 – $698,271 | 11.3% on income over $418,961 plus $36,314.46 |
| $698,271 and more | 12.3% on income over $698,271 plus $67,876.49 |
| 2023 California Individual Income Tax Rates – Married Filing Jointly or Widow(er) |
|---|
| $0 – $20,824 | 1% |
| $20,824 – $49,368 | 2% on income over $20,824 plus $208.24 |
| $49,368 – $77,918 | 4% on income over $49,368 plus $779.12 |
| $77,918 – $108,162 | 6% on income over $77,918 plus $1,921.12 |
| $108,162 – $136,700 | 8% on income over $108,162 plus $3,735.76 |
| $136,700 – $698,274 | 9.3% on income over $136,700 plus $6,018.80 |
| $698,274 – $837,922 | 10.3% on income over $698,274 plus $58,245.18 |
| $837,922 – $1,396,542 | 11.3% on income over $837,922 plus $72,628.92 |
| $1,396,542 and more | 12.3% on income over $1,396,542 plus $135,725.98 |
| 2023 California Individual Income Tax Rates – Head of Household |
|---|
| $0 – $20,839 | 1% |
| $20,839 – $49,371 | 2% on income over $20,839 plus $208.39 |
| $49,371 – $63,644 | 4% on income over $49,371 plus $779.03 |
| $63,644 – $78,765 | 6% on income over $63,644 plus $1,349.95 |
| $78,765 – $93,037 | 8% on income over $78,765 plus $2,257.21 |
| $93,037 – $474,824 | 9.3% on income over $93,037 plus $3,398.97 |
| $474,824 – $569,790 | 10.3% on income over $474,824 plus $38,905.16 |
| $569,790 – $949,649 | 11.3% on income over $569,790 plus $8,686.66 |
| $949,649 and more | 12.3% on income over $949,649 plus $91,610.73 |
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.
| 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
