2026 California State Income Tax
Effective 2026-04-28
California has a 9-bracket progressive income tax (1% to 12.3%) with a small standard deduction, an additional 1% Mental Health Services Tax on income over $1 million, and a separate State Disability Insurance (SDI) program of 1.2% on all wages with no cap.
- Top marginal rate
- 13.3%
- Bracket schedule
- 9-bracket progressive (1% / 2% / 4% / 6% / 8% / 9.3% / 10.3% / 11.3% / 12.3%)
- Standard deduction (Single / MFS)
- $5,540
- Standard deduction (MFJ)
- $11,080
- Authority
- California Franchise Tax Board — Tax Calculator, Tables, and Rates (FTB) — Form 540
Surcharge: 1% Mental Health Services Tax (Prop 63) on taxable income over $1,000,000 — effective top combined rate 13.3%
Top marginal rate
13.3%
California brackets are progressive: the top rate applies only to the portion of taxable income above the highest threshold, not to your whole income.
Married Filing Separately (MFS): in California, MFS uses the same bracket schedule as Single. MFJ thresholds are roughly double the Single thresholds at each rate transition, so MFS = Single bracket-by-bracket. The standard deduction for MFS is also the same as for Single filers.
California standard deduction
The amount California subtracts from federal AGI before applying the bracket schedule:
| Filing status | Standard deduction |
|---|---|
| Single or Married filing separately | $5,540 |
| Married filing jointly | $11,080 |
| Head of household | $11,080 |
2026 Single filer brackets
| Taxable income | Marginal rate |
|---|---|
| $0 – $10,756 | 1% |
| $10,756 – $25,499 | 2% |
| $25,499 – $40,245 | 4% |
| $40,245 – $55,866 | 6% |
| $55,866 – $70,606 | 8% |
| $70,606 – $360,659 | 9.3% |
| $360,659 – $432,787 | 10.3% |
| $432,787 – $721,314 | 11.3% |
| $721,314 and up | 12.3% |
2026 Married Filing Jointly brackets
| Taxable income | Marginal rate |
|---|---|
| $0 – $21,512 | 1% |
| $21,512 – $50,998 | 2% |
| $50,998 – $80,490 | 4% |
| $80,490 – $111,732 | 6% |
| $111,732 – $141,212 | 8% |
| $141,212 – $721,318 | 9.3% |
| $721,318 – $865,574 | 10.3% |
| $865,574 – $1,442,628 | 11.3% |
| $1,442,628 and up | 12.3% |
2026 Head of Household brackets
| Taxable income | Marginal rate |
|---|---|
| $0 – $21,528 | 1% |
| $21,528 – $51,000 | 2% |
| $51,000 – $65,744 | 4% |
| $65,744 – $81,364 | 6% |
| $81,364 – $96,107 | 8% |
| $96,107 – $490,493 | 9.3% |
| $490,493 – $588,593 | 10.3% |
| $588,593 – $980,987 | 11.3% |
| $980,987 and up | 12.3% |
Worked examples (Single filer)
| Federal AGI | California taxable | California tax |
|---|---|---|
| $40,000 | $34,460 | $760.86 |
| $80,000 | $74,460 | $3,467.14 |
| $150,000 | $144,460 | $9,977.14 |
| $300,000 | $294,460 | $23,927.14 |
The Mental Health Services Tax (the "millionaire's tax")
On top of the standard 1% – 12.3% schedule, California adds a 1% Mental Health Services Tax on the slice of taxable income above $1,000,000. The threshold is the same regardless of filing status; joint filers do not get a doubled threshold. Effective top marginal rate above $1M is therefore 13.3%.
The calculator projects the 9-bracket schedule. If your projected California taxable income exceeds $1M, your real tax bill will be roughly 1% higher than projected on the slice above that threshold.
California State Disability Insurance (SDI)
California collects a 1.2% State Disability Insurance premium on all wages, and as of 2024, there is no wage cap. Senate Bill 951 removed the prior wage base, so high earners pay SDI on every dollar of wages. The calculator includes CA SDI on the projection's "Other state-level paycheck deductions" block.
SDI funds short-term disability benefits and California's Paid Family Leave program. It is a payroll deduction, not part of state income tax. It doesn't reduce your CA tax liability and isn't recoverable at filing.
California AGI vs. federal AGI
California uses California AGI: federal AGI with state-specific add-backs (state tax refunds, certain bond interest) and subtractions. For wage-only filers, California AGI tracks federal AGI closely enough that the federal-AGI basis produces an accurate projection. Filers with significant non-wage income (capital gains, K-1 income, investment income) should treat the projection as approximate.
Bracket thresholds inflation-adjust each year
California adjusts bracket thresholds each year for inflation. The thresholds shown are the most recent FTB-published schedule; FTB typically publishes the year-N thresholds in November of year N-1. The 9-bracket structure and the rate ladder (1% / 2% / 4% / 6% / 8% / 9.3% / 10.3% / 11.3% / 12.3%) are statutory and do not change.
How California stacks with federal tax
California state tax is owed on top of federal income tax. The Breakeven calculator projects both numbers from your year-to-date paychecks once you select California as your state. For the federal side, see the 2026 federal brackets.
Sources
- California Franchise Tax Board — Tax Calculator, Tables, and Rates — authoritative source for the rate schedule and Form 540.
- Tax Foundation — State Individual Income Tax Rates — annual cross-reference for state-tax structure and rate stability.
Note on local taxes and SDI. The calculator projects California state income tax only. It does not include municipal or county income tax (where the state allows them) or state payroll surcharges like SDI / paid family leave. If you live or work somewhere with a local income tax, or in a state with an SDI surcharge, your real paycheck withholding will be higher than projected. See the methodology for the full list.
Last cross-checked on 2026-04-28. Verify with the California Department of Revenue if it matters.
California 2026 tax FAQ
- What is California's top marginal income tax rate for 2026?
- California's top statutory bracket is 12.3% on taxable income above the highest threshold. Income over $1,000,000 is also subject to a 1% Mental Health Services Tax (the "millionaire's tax" from Proposition 63), making the effective top combined rate 13.3% — the highest of any U.S. state.
- Does California have a Mental Health Services Tax for 2026?
- Yes. The Mental Health Services Tax (MHST) is a 1% surtax on taxable income above $1,000,000, on top of the regular 9-bracket schedule. The threshold is the same regardless of filing status — joint filers do NOT get a doubled threshold. So a single filer with $1.2M of taxable income owes 1% on the slice from $1,000,000 to $1,200,000, in addition to the 12.3% top bracket on that same slice.
- What are California's 2026 brackets for Married Filing Separately?
- Married Filing Separately uses the same bracket thresholds as Single in California. The MFJ thresholds are exactly double the Single thresholds at each rate transition, so MFS = Single. The standard deduction is also the same for Single and MFS filers.
- What is California's 9.3% bracket?
- 9.3% is the sixth bracket in California's progressive schedule (1% / 2% / 4% / 6% / 8% / 9.3% / 10.3% / 11.3% / 12.3%). For Single and MFS filers, it applies to taxable income above roughly $76,397 (2025 figures, inflation-adjusted annually by the FTB). For MFJ, the threshold is roughly $152,794 — twice the Single threshold.
- Are 2026 California tax brackets the same as 2025?
- The rate structure (1% / 2% / 4% / 6% / 8% / 9.3% / 10.3% / 11.3% / 12.3%) is statutory and does not change year to year. The bracket thresholds are inflation-adjusted by the FTB each year and typically published in November of the prior year. The 1% MHST surcharge over $1,000,000 is also statutory and does not change.
- Does California have a state standard deduction for 2026?
- Yes, but it is small compared to the federal standard deduction. The California standard deduction is roughly $5,540 for Single and Married Filing Separately, and roughly $11,080 for Married Filing Jointly and Head of Household (2025 figures, inflation-adjusted by the FTB). California's bracket thresholds apply to taxable income — federal AGI minus this state-level standard deduction (or itemized deductions, whichever is larger).
Writing about California taxes? Drop this card into your post. Citations welcome.
Canonical reference: https://www.breakeven.tax/brackets/2026/california