California individual income tax
California's individual income tax is a tax on the income earned by residents, part-residents and nonresidents of the state. The tax is based on the individual's federal-adjusted gross income, with rates ranging from 1% to 12.3%.
April 18
Return due in 2023
12.3%
Top marginal tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit CaliforniaFTB
What is California income tax?
Individual income tax
Individual income tax is a type of direct tax levied by California on individuals that meet the taxable criteria.
Taxable incomes
California taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
California has 9 individual income tax brackets from 1% to 12.3%.
Standard deduction
Standard deduction is $5,202 for singles and $10,404 for couples/head of household for the tax year 2022.
Personal exemption
If your taxable income is less than $100,000 use the tax table (instead of the tax schedules with rates) to ascertain taxes.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| California taxable income | Tax rate |
|---|---|
| $0 - $10,099 | 1% |
| $10,099 - $23,942 | 2% |
| $23,942 - $37,788 | 4% |
| $37,788 - $52,455 | 6% |
| $52,455 - $66,295 | 8% |
| $66,295 - $338,639 | 9.3% |
| $338,639 - $406,364 | 10.3% |
| $406,364 - $677,275 | 11.3% |
| $677,275+ | 12.3% |
Individual income tax
The State of California requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from California
Types of taxable incomes
The income types on which tax is levied are:
In California, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in California, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
Income is taxed based on your filing status. The 5 statuses are : Single, Married filing jointly, Married filing separately, Head of household, and Qualifying surviving spouse/Registered Domestic Partnership with child.
Filing status in California is the same as the federal filing status.
If you were not required to file a federal tax return, you can use the same filing status on your California return that you would have been eligible for on your federal return if you had been required to file one.
Due
annually
Pay taxes
Taxes in California are due by 18 April, 2023. Go to the official California Department of Revenue website.
If your income is less than $100,000, use the tax table to ascertain taxes (instead of using the tax rate schedule)
Tax table
If you estimate your tax payments to be more that $500 (single filers) or $250 (joint filers), or your withholding taxes lesser than prior year's tax, you must pay estimated taxes quarterly.
The quarterly installments are due by the 15th of April, June, September, and January.
Payment of estimated taxes in California is different from Federal Estimated taxes. Amount due in each instalment : 1st - 30%, 2nd - 40%, 3rd - 0% and 4th - 30% of annual payment
Type of tax
graduated tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
The standard deduction for the tax year 2022 is $5,202 for individuals filing as single and $10,404 for those filing as couples/head of household.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
You may be eligible for one or more tax credits if you pay rent, have a family with children, or provide financial assistance to low-income college students.
Additionally, California offers an earned income tax credit that may result in a refund even if you do not owe any taxes.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
Residency in California refers to an individual's permanent home or place of residence in the state.
California resident
A California resident is someone who is domiciled in California, or who maintains a permanent place of residence in the state. This means that you are considered an California resident if you live in the state for most of the year, or if you have a home in California that you use as your primary residence.
You are considered a resident if you have a permanent residence in California, but outside the state for a temporary purpose.
California part-year resident
A California Part-Year Resident is someone who moved into or out of the state during the tax year.
Income earned while the individual was a resident of California is subject to state taxes.
Any income that is sourced from California will also be taxed.
California non-resident
A California Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who receive income from California sources are required to pay California taxes. This includes but not limited to, income from California properties and personal services performed in the state.
Frequently asked questions
Business entities in California
There are several business entities in California
California LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time