California State Income Tax in 2025: A Guide

California’s state income tax rates are among the highest in the nation. Getting a handle on how the Golden State’s tax system works can help you minimize your tax burden by taking advantage of available credits and deductions.  

So, let’s break down what you need to know for the 2025 tax year. 

Note: You are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only.

What are California state income tax rates for 2025?

There are nine California state income tax brackets for the 2025 tax year (filed in 2026), with rates ranging from 1% to 12.3%, depending on your income.

A 1% Behavioral Health Services Tax surcharge may apply to taxable income over $1 million, bringing the top effective rate to 13.3%. The funds from this tax are used to provide housing, treatment, and support services to those at risk across all counties within California. It aims to help those most in need while creating open transparency across the state.

California uses a marginal tax system, meaning different portions of your income are taxed at different rates.

For example, using the 2025 state tax table:

• A taxpayer filing as single while earning $24,000 would pay 1% on the first $11,079 of income and 2% on the remaining $12,921.
• A taxpayer filing as single earning $35,000 would pay 1% on the first $11,079, 2% on the next $15,185, and 4% on the final $8,736.

What are California income tax brackets for 2025?

Tax rate	Single or Married Filing Separately	Married Filing Jointly or Qualifying Surviving Spouse	Head of Household
1%	Up to $11,079	Up to $22,158	Up to $22,173
2%	$11,080 to $26,264	$22,159 to $52,528	$22,174 to $52,530
4%	$26,265 to $41,452	$52,529 to $82,904	$52,531 to $67,716
6%	$41,453 to $57,542	$82,905 to $115,084	$67,717 to $83,805
8%	$57,543 to $72,724	$115,085 to $145,448	$83,806 to $98,990
9.3%	$72,725 to $371,479	$145,449 to $742,958	$98,991 to $505,208
10.3%	$371,480 to $445,771	$742,959 to $891,542	$505,209 to $606,251
11.3%	$445,772 to $742,953	$891,543 to $1,485,906	$606,252 to $1,010,417
12.3%	$742,954 and over	$1,485,907 and over	$1,010,418 and over

Source: California Franchise Tax Board (CFTB) 

Note: If your taxable income is $100,000 or less, you can use the tax table listed on the FTB website to calculate your taxes owed.

What is the standard deduction in California for 2025?

The standard deduction reduces your taxable income, which can lower your taxes.

For the 2025 tax year, the standard deduction in California is:

• Single or Married Filing Separately: $5,706 
• Married Filing Jointly, Head of Household, or Qualifying Surviving Spouse: $11,412

Taking the standard deduction can simplify filing your California state income taxes because it automatically lowers your taxable income. This is beneficial when the standard deduction is higher than your itemized deductions.

Who has to file California state income tax?

You must file a California state income tax return if you’re a resident, part-year resident, or nonresident and any of the following apply:

• You have income from California sources. 
• You’re required to file a federal return. 
• You have income above certain thresholds.

Be sure to check the income limits to confirm filing a California income tax return is necessary for you.

How does California residency impact tax filing?

California recognizes three residency statuses for tax purposes:

• Resident
• Part-year resident
• Nonresident

The table below outlines the different residency statuses, who qualifies, and how California taxes each.

Residency status	Definition	How California taxes income
Resident	You live in California permanently, or you’re based in California but are temporarily living outside the state.	You’re taxed on all income, no matter where it’s earned.
Part-year resident	You lived in California for part of the year and lived elsewhere for the rest.	You’re taxed on income earned while you lived in California and any income from California sources while you were a nonresident.
Nonresident	You don’t live in California but earned money from California sources (such as a job performed within the state, property, or business located within the state).	You’re taxed on income from California sources.

Does California have reciprocity with other states?

California has limited reciprocity agreements with:

• Arizona
• Oregon
• Virginia

California residents who have earned income from any of these states will file nonresident returns in that state and claim net income tax paid to California with the Other State Tax Credit (OSTC).

If you’re a California resident, you’ll use the following forms to claim a credit for income taxes paid and avoid double taxation:

• For your California income tax return, you’ll use Schedule S.
• For Arizona income taxes, use Form 309.
• For Oregon income taxes, use Form OR-40-N to report income exclusively earned from Oregon sources.
• For Virginia income taxes, use Form 763  to report income exclusively earned from Virginia sources.

Is Social Security and pension income taxed in California?

Most distributions from pensions and retirement accounts like 401(k), 403(b), and Individual Retirement Accounts (IRAs) are taxed as regular income for California residents. An additional 2.5% state tax may apply to early withdrawals made before age 59½.

Social Security benefits are not taxed in California.

How is investment income taxed in California?

Interest, dividends, and capital gains are generally taxed as ordinary income for California residents. You can estimate potential taxes for your federal return using a capital gains tax calculator. For California, you can use the tax calculator from the Franchise Tax Board.

Part-year residents are taxed on investment income earned while they lived in California. Nonresidents are taxed only on investment income from California sources.

How is military income taxed in California?

Military members who are California residents are generally taxed on their income using the same method as other residents. If you’re assigned to a duty station outside California, you may file as a nonresident and be taxed only on income from California sources.

If you entered the military while a resident of another state and are in California due to permanent change of station (PCS) orders, you’re typically treated as a nonresident and only taxed on California-source income. Combat pay is not taxable.

Starting in the 2025 tax year, California allows eligible military retirees to exclude up to $20,000 of retirement pay or survivor benefits from state income tax. To qualify, you must be a California resident with adjusted gross income below $125,000 ($250,000 if married filing jointly). The exclusion is scheduled to expire after 2029.

What are some of the most common California tax credits?

Tax credit	Description	Amount
California Earned Income Tax Credit (CalEITC)	Helps low-income individuals and families with income under  $32,900	Up to $3,756
Child Adoption Costs Credit	Covers 50% of the costs of adopting a qualified child.	Up to $2,500 per child in a tax year
Child and Dependent Care Expenses Credit	Covers costs if you paid someone to care for a child or dependent.	Variable % on up to $3,000 for one person, $6,000 for two or more
College Access Tax Credit (CATC)	Encourages donations to the College Access Tax Credit Fund.	Up to 50% of your contribution
Dependent Parent Credit	For taxpayers supporting a dependent parent. Your parent doesn’t have to live with you.	Up to $610
Foster Youth Tax Credit (FYTC)	Offers financial support for current or former foster youth.	Up to $1,189 per eligible individual
Joint Custody Head of Household	For taxpayers sharing custody of a child but not living together.	Up to $610
Nonrefundable Renter’s Credit	Available for renters with incomes below a certain threshold who paid rent for at least 6 months during the year.	Up to $60 (single) or $120 (married)
Other State Tax Credit	Provides relief for taxes paid to another state so you aren’t paying taxes twice for income generated in another state.	Varies based on other state taxes
Prior Year Alternative Minimum Tax (AMT)	Reduces tax owed if you paid AMT in prior years.	Varies based on AMT paid
Senior Head of Household Credit	For people 65 and over acting as head of household.	Up to $1,860
Young Child Tax Credit (YCTC)	Additional support for families with young children.	Up to $1,189 per return

For the complete list of California’s tax credits and deductions, visit the California Franchise Tax Board website.

Does California offer tax relief for natural disasters?

Disaster relief availability in California income taxes varies from year to year. For example, in 2025, the deadlines for California income taxes were extended for those impacted by the LA County wildfires. In this case, qualifying filers were able to postpone filing and paying their 2024 income taxes until October 15, 2025.

How do you file California income tax?

Filing California state income taxes can feel overwhelming, but tools like TurboTax can help guide you through the process and identify deductions and credits you may qualify for.

If you want additional support, you can connect with a California tax expert who can answer questions or prepare your taxes for you. Experts are available online or at select tax office locations across California.

TurboTax helps make filing simple, accurate, and tailored to your situation so you can file with confidence.

Already filed? Track your California income tax refund.