Introduction
California has one of the most progressive income tax systems in the United States, meaning the more you earn, the higher percentage of tax you pay. If you’re a resident, part-year resident, or have California-source income, understanding the 2024 tax brackets can help you file accurately in 2025.
California’s Progressive Tax System Explained
Applicable Code: IRC §§ 1(a)-(d), IRC §63; California Revenue & Taxation Code §17041
California does not conform to the federal tax brackets. Instead, it has 10 marginal tax rates, ranging from 1% to 13.3%. This means each portion of your income is taxed at different rates—not your entire income at one flat rate.
California Income Tax Brackets for 2024 (To Be Filed in 2025)
These rates apply to taxable income after deductions. Here’s a simplified version of the 2024 income tax brackets:
| Filing Status | 1% | 2% | 4% | 6% | 8% | 9.3% | 10.3% | 11.3% | 12.3% | 13.3% |
|---|---|---|---|---|---|---|---|---|---|---|
| Single | $0–$10,099 | $10,100–$23,942 | $23,943–$37,788 | $37,789–$52,455 | $52,456–$66,295 | $66,296–$338,639 | $338,640–$406,364 | $406,365–$677,275 | $677,276–$1,000,000 | Over $1,000,000 |
| Married Filing Jointly | $0–$20,198 | $20,199–$47,884 | $47,885–$75,576 | $75,577–$104,910 | $104,911–$132,590 | $132,591–$677,278 | $677,279–$812,728 | $812,729–$1,354,550 | $1,354,551–$2,000,000 | Over $2,000,000 |
Note: Brackets are adjusted for inflation annually. These are for 2024 income filed in 2025.
How to Calculate Your California Income Tax
- Determine your gross income.
- Subtract adjustments and standard or itemized deductions (Standard: $5,363 for Single; $10,726 for MFJ in 2024).
- Use the marginal tax rates above to compute the tax on each income range.
- Apply any credits (like the California Earned Income Tax Credit – CalEITC).
Examples Based on Filing Status
Example 1 – Single Filer
Gross Income: $90,000
Deductions: $5,363 (standard)
Taxable Income: $84,637
Apply marginal tax rates across brackets. Estimated total tax: ~$5,892
Example 2 – Married Filing Jointly
Gross Income: $180,000
Deductions: $10,726 (standard)
Taxable Income: $169,274
Estimated tax: ~$12,394
Forms You’ll Need
- Form 540 – California Resident Income Tax Return
- Schedule CA (540) – Adjustments to federal income
- Form 540NR – For nonresidents or part-year residents
- Form FTB 3514 – California Earned Income Tax Credit
- Form FTB 3582 – Payment voucher if paying by check
Step-by-Step Guide to Calculate and File
- Gather all federal income forms (W-2, 1099, etc.).
- Download Form 540 or 540NR from the FTB website.
- Adjust for California rules using Schedule CA.
- Apply deductions and check eligibility for tax credits.
- Use 2024 tax bracket tables to calculate your tax.
- File online via the FTB portal or mail completed forms by April 15, 2025.
- If you can’t file by then, submit Form FTB 3519 to request an extension.
Conclusion
California’s progressive tax brackets mean each dollar you earn is taxed at increasingly higher rates. Filing your return accurately by using the correct brackets, deductions, and credits ensures full compliance and may reduce your total tax burden.
Call to Action
Confused by California’s tax brackets or unsure how much you’ll owe?
Schedule a consultation with Anshul Goyal, CPA EA FCA, a licensed Certified Public Accountant in the U.S., admitted to practice before the IRS and an expert in California and cross-border tax compliance.
📅 Book your appointment here
FAQs – Commonly Asked Questions
Q1: Do I pay the same tax rate on all my income?
No. California uses a marginal tax rate system—only income within each bracket is taxed at that rate.
Q2: Are there different brackets for capital gains?
No. Capital gains are taxed as regular income in California.
Q3: What’s the highest California tax rate?
The highest marginal tax rate is 13.3%, applying to income over $1M (Single) or $2M (MFJ).
Q4: Can I use federal standard deduction in California?
No. California has its own standard deduction, which is lower than federal.
Q5: How do I check if I qualify for CalEITC?
You may qualify if your income is below $30,950 and you meet other requirements—check Form FTB 3514.
About Our CPA
Anshul Goyal, CPA EA FCA is a U.S.-licensed Certified Public Accountant, Enrolled Agent, and Fellow Chartered Accountant. With over 15 years of experience in tax preparation, IRS representation, and international compliance, he has helped over 2,000 clients save more than $200M in taxes. Anshul specializes in California taxation and cross-border filings for Indians living in the U.S. and American business owners with international concerns.
Disclaimer
This blog is intended for informational purposes only. It does not constitute legal or tax advice. Individual tax situations vary, and state laws change frequently. You should consult a qualified CPA or tax professional before making any financial decisions or filing your return.