California variant. This is a California-specific version of the Income Tax Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Income Tax Calculator.
California income tax (1-13.3% (highest in US), additional 1% mental health tax over $1M) stacks on top of federal tax. Understanding both layers is essential to estimating your total California tax bill.
California state income tax structure
California taxes income at 1-13.3% (highest in US), additional 1% mental health tax over $1M, with a top marginal rate of 13.3%. Like the federal system, only income within each bracket is taxed at that bracket's rate.
Federal brackets (10%–37%) apply nationwide. Combine your federal effective rate with the California rate to find your true marginal tax on the next dollar earned.
About taxes and housing in California
California has the highest top marginal income tax rate in the nation, reaching 13.3% on the highest earners with an additional surcharge on income above $1 million.
California's Proposition 13 caps annual increases in a property's assessed value at 2%, which keeps long-term owners' tax bills well below current market value.
California has the largest state economy in the U.S., powered by technology, entertainment, and agriculture, but also one of the highest costs of living.
Worked example: state tax on $95,521
Using the 13.3% top rate as a ceiling, state income tax on $95,521 is at most about $12,704; the actual figure is lower after brackets and deductions.
Quick reference
- State income tax: 1-13.3% (highest in US), additional 1% mental health tax over $1M
- State sales tax: 7.25% (plus 1.31% avg local)
- Median home value: $760,000
- Median household income: $95,521
- Effective property tax rate: 0.71%
- Avg auto insurance: $2,291/yr
Frequently Asked Questions
Does California have state income tax?
Yes - 1-13.3% (highest in US), additional 1% mental health tax over $1M, topping out at 13.3%.
What is the top tax rate in California?
The top marginal state rate is 13.3%.