California Income Tax Calculator
Estimate your effective tax rate based on the latest California income tax brackets and rates. Better plan your finances.
California Income Tax Rate
Residents in California pay federal and state personal income tax (PIT) on income earned worldwide.
Federal Income Tax is a progressive tax levied on total taxable income after deductions and exemptions. The tax rates for 2023 are:
| Taxable base (from) | Taxable base (to) | Tax rate |
| $0 | $11,600 | 1% |
| $11,601 | $47,150 | 12% |
| $47,151 | $100,525 | 22% |
| $100,526 | $191,950 | 24% |
| $191,951 | $243,725 | 32% |
| $243,726 | $609,250 | 34% |
| $609,251 | Remainder | 37% |
California State Income Tax rates for 2023 are:
| Taxable base (from) | Taxable base (to) | Tax rate |
| $0 | $10,412 | 1% |
| $10,413 | $24,684 | 2% + $104 |
| $24,685 | $38,959 | 4% + $389.56 |
| $38,960 | $54,081 | 6% + $960.56 |
| $54,082 | $68,350 | 8% + $1,867.88 |
| $68,351 | $349,137 | 9.3% + $3,009.40 |
| $349,138 | $418,961 | 10.3% + $29,122.59 |
| $418,962 | $698,271 | 11.3% + $36,314.46 |
| $698,272 | Remainder | 12.3% + $67,876.49 |
Tax Law & Fines in California
The United States tax system is administered by the Internal Revenue Service (IRS) and includes taxes on income, payroll, estates, gifts, and more.
The IRS oversees tax filing deadlines, collection, audits, and imposition of penalties for non-compliance as follows:
- Failure to file taxes on time can result in penalties of 5% of unpaid taxes each month, up to 25% of taxes owed.
- Inaccurate reporting can result in penalties of 20% of the underpayment.
- Tax fraud is subject to fines up to 75% of the underpayment plus criminal penalties. There is no statute of limitations for tax fraud.
Also, worth noting that the IRS can investigate potential tax evasion through audits, document requests, asset seizures and more. Tax evasion over $10,000 is a felony offense with potential 5 year prison sentence and fines up to $250,000 for individuals.
The California Franchise Tax Board (FTB) also administers California income tax laws and imposes similar penalties and enforcement mechanisms as the IRS in cases of non-compliance.
Facts About The Tax System in California
- California has one of the highest state income tax burdens in the United States, with a top rate of 13.3% on incomes over $1 million.
- California has a state sales tax rate of 7.25%, plus local districts can add additional sales taxes that result in total rates over 10% in some cities.
- California has very high gasoline excise taxes, currently at $0.53 per gallon in addition to sales taxes applied on top. This makes California one of the most expensive states for buying gasoline.
- Tax revenue funds important services in the state. Over 60% of the state general fund budget is spent on education and health/human services programs.
Frequently Asked Questions
Got a question? We've got answers.
Progressive income tax uses graduated, increasing tax rates that apply to different income brackets. Here is a hypothetical example. Income tax in a random country is divided into brackets, like 0-$10k, $10k-40k, etc. Each bracket has a tax rate that increases as income rises. For example: 10% for 0-$10k and 15% for $10k-$40k and 25% for $40k-$85k. You calculate progressive income tax by applying the rate for each bracket only to the income in that bracket. So for $60k income, the progressive tax income will be 10% of first $10k and 15% of next $30k and 25% of remaining $20k. This will result in a total tax of $10,500.
Income tax is a tax levied on individuals and business entities based on their income or profits. It is imposed on taxable income, which is calculated as gross income minus any deductions and exemptions allowed under the tax code. For individuals, income tax typically applies to wages, salaries, tips, investment income like dividends and interest, business/self-employment income, capital gains, etc.
Social security contribution refers to the taxes paid into the social security system by employees, employers, and self-employed individuals. It’s used to fund several important social insurance programs such as retirement benefits, disability benefits, unemployment benefits, survivor benefits, medicare health insurance, etc.
Self-employed income refers to the earnings and revenues generated by individuals who are self-employed, operate their own business or have side projects. Some common examples of self-employed income include income from sales of products or services, consulting or freelance income, commissions, profit distributions, etc.
Self-employed expense refers to costs and expenditures incurred by individuals who are self-employed, owns their own business, or has a side project. Some common examples of self-employed expenses include equipment, supplies, insurance, professional fees, repairs and much more.
Need professional help? Talk to an tax accountant today