California Tax Calculator & Rates 2026
California carries one of the highest tax burdens in the United States. The state levies a graduated income tax with 9 brackets up to 12.30%, plus a separate 1% Mental Health Services Tax on income above $1,000,000 (effective top rate 13.3%). The statewide base sales tax rate is 7.25%. Use the calculators below to estimate your California tax liability for the 2026 tax year.
California Income Tax Brackets 2026
California uses a graduated income tax with 9 brackets for single filers. The top marginal bracket rate of 12.30% applies to taxable income over $721,314. A separate 1% Mental Health Services Tax (Proposition 63) applies to taxable income above $1,000,000, bringing the effective top rate to 13.3%.
| Taxable Income | Rate |
|---|---|
| $0 - $10,756 | 1.00% |
| $10,756 - $25,499 | 2.00% |
| $25,499 - $40,245 | 4.00% |
| $40,245 - $55,866 | 6.00% |
| $55,866 - $70,606 | 8.00% |
| $70,606 - $360,659 | 9.30% |
| $360,659 - $432,787 | 10.30% |
| $432,787 - $721,314 | 11.30% |
| Over $721,314 | 12.30% |
Source: California FTB
California Sales Tax
California's statewide base sales tax rate is 7.25%. Local district taxes range from 0.10% to 2.00% on top of the state rate, depending on the jurisdiction. CDTFA publishes district-specific rates rather than a single statewide average.Most grocery food items are exempt from California sales tax.
California Capital Gains Tax
California taxes capital gains as ordinary income with no preferential rate. Both short-term and long-term capital gains are subject to the same graduated income tax rates (1% to 12.30%). The 1% Mental Health Services Tax surcharge also applies to capital gains income above $1,000,000.
California SDI Payroll Deduction
California State Disability Insurance (SDI) is deducted from all employee paychecks at a rate of 1.30% on all wages with no cap. SDI also funds Paid Family Leave (PFL) benefits. This is a mandatory employee-paid deduction that appears as a separate line on your pay stub.
OBBBA Conformity - Does California Follow Federal Deductions?
The One Big Beautiful Bill Act (OBBBA) introduced several new federal tax deductions, including deductions for tips income, overtime pay, and a senior bonus. California maintains its own tax code (Revenue and Taxation Code) and does not automatically conform to new federal provisions. Each deduction requires separate legislative action by the California legislature and approval by the Governor.
- Tips Deduction: Unknown.California has not enacted legislation conforming to the federal OBBBA tips income tax deduction. CA uses its own tax code (R&TC) and does not automatically conform to new federal deductions. Until the FTB or legislature acts, this deduction is not available for CA purposes.
- Overtime Deduction: Unknown.California has not enacted legislation conforming to the federal OBBBA overtime income tax deduction. CA does not automatically conform to new federal provisions and requires separate legislative action.
- Senior Bonus Deduction: Unknown.California has not enacted legislation conforming to the federal OBBBA senior bonus deduction. CA requires explicit legislative action to adopt new federal tax provisions.
Even when California does not conform, the federal deduction still reduces your federal taxable income. Use our state-specific calculators to see the combined effect on both your federal and California returns.