Understanding California income tax brackets is essential for anyone living or earning money in the Golden State, especially as we settle into the 2026 filing season for the 2025 tax year. Unlike states with a flat tax rate, California employs a progressive tax system, meaning that as your taxable income rises, so does the percentage you contribute to the state’s coffers. This system is designed to ensure fairness, but it can be a bit of a maze if you aren’t prepared. Whether you are filing single, married filing jointly, or claiming head of household, your specific tax rate is determined by where your earnings fall within these tiered schedules. The state has some of the highest marginal tax rates in the country, topping out at 12.3% for high earners, plus an additional surcharge for millionaires. However, knowing your exact bracket helps you estimate your liability and plan for potential deductions, ensuring you don’t overpay when April rolls around.
How Progressive Rates Work
California’s tax structure is built like a staircase. You don’t pay your highest tax rate on all your money; you only pay it on the chunk of income that falls into that specific step. For example, if you earn enough to reach the 4% bracket, you still only pay 1% and 2% on the first portions of your income. This graduated tax rate system means your effective tax rate—the actual percentage of your total income that goes to the Franchise Tax Board (FTB)—is often lower than your top marginal bracket.
The Mental Health Services Tax
There is a unique twist for the state’s highest earners known as the Mental Health Services Tax (often updated to Behavioral Health Services Tax). If your taxable income exceeds $1,000,000, you are hit with an additional 1% surcharge on every dollar over that million-mark. This applies regardless of your filing status, pushing the effective top marginal rate to 13.3% or even higher in certain years, directly funding mental health programs across the state’s 58 counties.
Standard Deductions 2025
Before you even worry about brackets, you get to shave a chunk off your income using the standard deduction. For the 2025), the standard deduction has been adjusted for inflation.
- Single or Married Filing Separately: $5,540
- Married Filing Jointly, Head of Household, or Qualifying Widow(er): $11,080
These deductions reduce your taxable income directly, potentially dropping you into a lower tax bracket before you even calculate what you owe.
California Tax Brackets Table 2025
Below are the income tax brackets for the [yeare1 tax year. Note how the income ranges for Married Filing Jointly are exactly double those for Single filers, simplifying the math for couples.
| Tax Rate | Single / Married Filing Separately | Married Filing Jointly |
|---|---|---|
| 1.0% | $0 – $11,079 | $0 – $22,158 |
| 2.0% | $11,080 – $26,264 | $22,159 – $52,528 |
| 4.0% | $26,265 – $41,452 | $52,529 – $82,904 |
| 6.0% | $41,453 – $57,552 | $82,905 – $115,104 |
| 8.0% | $57,553 – $72,735 | $115,105 – $145,470 |
| 9.3% | $72,736 – $371,780 | $145,471 – $743,560 |
| 10.3% | $371,781 – $446,136 | $743,561 – $892,272 |
| 11.3% | $446,137 – $743,561 | $892,273 – $1,487,122 |
| 12.3% | $743,562 and over | $1,487,123 and over |
| +1% | Income over $1,000,000 | Income over $1,000,000 |
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FAQs
Q: Do I pay California income tax on all my income?
A: No, you only pay tax on the amount remaining after you subtract your standard deduction or itemized deductions from your total income.
Q: What is the highest tax rate in California?
A: The top marginal rate is 12.3%, but with the additional 1% surcharge on income over $1 million, it can effectively reach 13.3%.