California 2024 Tax Brackets and Rates

California operates under a progressive income tax system, meaning that as a resident’s income increases, so does the percentage of that income paid in state taxes. The specific income thresholds for each tax rate, along with standard deductions and credits, are adjusted each year by the Franchise Tax Board to account for inflation. The information detailed here pertains to the 2024 tax year, which is the basis for tax returns filed in early 2025.

2024 California Income Tax Brackets and Rates

For the 2024 tax year, California has nine tax rates, ranging from 1% to 12.3%. Your filing status—Single, Married Filing Jointly, Head of Household, or Married Filing Separately—determines which income brackets apply to you. California uses a marginal rate system, where different portions of your income are taxed at progressively higher rates. This means that only the dollars you earn within a specific bracket are taxed at that bracket’s rate.

Single Filers:

• 1% on income up to $10,756
• 2% on income from $10,757 to $25,499
• 4% on income from $25,500 to $40,245
• 6% on income from $40,246 to $55,866
• 8% on income from $55,867 to $70,606
• 9.3% on income from $70,607 to $360,659
• 10.3% on income from $360,660 to $432,787
• 11.3% on income from $432,788 to $721,314
• 12.3% on income over $721,314

Married Filing Jointly:

• 1% on income up to $21,512
• 2% on income from $21,513 to $50,998
• 4% on income from $50,999 to $80,490
• 6% on income from $80,491 to $111,732
• 8% on income from $111,733 to $141,212
• 9.3% on income from $141,213 to $721,318
• 10.3% on income from $721,319 to $865,574
• 11.3% on income from $865,575 to $1,442,628
• 12.3% on income over $1,442,628

Head of Household:

• 1% on income up to $21,527
• 2% on income from $21,528 to $51,000
• 4% on income from $51,001 to $65,744
• 6% on income from $65,745 to $81,364
• 8% on income from $81,365 to $96,107
• 9.3% on income from $96,108 to $490,493
• 10.3% on income from $490,494 to $588,592
• 11.3% on income from $588,593 to $980,986
• 12.3% on income over $980,986

Married Filing Separately:
The brackets for this status are identical to the Single filing status.

Standard Deduction and Exemption Credits

Before applying the tax rates, taxpayers can reduce their taxable income through deductions. For 2024, the California standard deduction is $5,540 for those with Single or Married Filing Separately status. Taxpayers who file as Married Filing Jointly, Head of Household, or as a Qualifying Surviving Spouse are entitled to a standard deduction of $11,080.

In addition to deductions, California offers exemption credits, which directly reduce your final tax liability. For the 2024 tax year, the personal exemption credit is $149 for Single, Married Filing Separately, and Head of Household filers. A credit of $298 is available for those who are Married Filing Jointly or a Qualifying Surviving Spouse, and taxpayers can claim a dependent exemption credit of $461 for each qualifying dependent.

Calculating Your California Income Tax

To illustrate the calculation, consider a single individual with a gross income of $85,000 and no dependents. The first step is to subtract the standard deduction for a single filer, which is $5,540. This reduces their taxable income to $79,460, the figure used to calculate the tax based on the marginal brackets.

Next, the tax brackets are applied to the $79,460 of taxable income. The tax is calculated as: 1% on the first $10,756 ($107.56), plus 2% on income up to $25,499 ($294.86), plus 4% on income up to $40,245 ($589.80), plus 6% on income up to $55,866 ($937.26), plus 8% on income up to $70,606 ($1,179.12), plus 9.3% on the remaining income up to $79,460 ($823.33). The sum of these amounts results in an initial tax of $3,931.93.

The final step is to subtract any applicable credits. As a single filer, this individual is entitled to a $149 personal exemption credit. Subtracting this credit from the initial tax brings the final California income tax liability to $3,782.93.

Other Important California Tax Considerations

California has specific rules that can affect a taxpayer’s liability. One is the Mental Health Services Tax, an additional 1% tax levied on personal income that exceeds $1 million, irrespective of the taxpayer’s filing status. This tax helps fund state mental health programs.

For 2024, the State Disability Insurance (SDI) tax is 1.1% on all wage income, with no income ceiling. When combined, the top income tax rate (12.3%), the Mental Health Services Tax (1%), and the SDI tax (1.1%) result in a top marginal tax rate of 14.4% on wages for California’s highest earners.

California’s tax law also differs from federal rules in the treatment of capital gains. The state does not offer a lower tax rate for long-term capital gains. Instead, all capital gains are taxed as ordinary income, meaning the profit from selling an asset is added to your other income and taxed at your marginal income tax rate.