Updated for tax year 2025.
If you live or work in California, you’ll likely need to file a California state income tax return along with your federal return. California has a progressive income tax system with nine tax rates, so the amount you owe depends on your filing status and taxable income.
This guide explains California’s 2025 income tax rates and brackets, standard deduction, available exemptions and credits, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies California’s tax rules to help you accurately prepare your California return alongside your federal return.
What is the California state income tax?
California state income tax is a tax on income earned by individuals and certain businesses. It is collected by the California Franchise Tax Board (FTB) and helps fund state services.
Unlike states with a flat income tax, California uses a progressive tax system, meaning different portions of your taxable income are taxed at different rates. For tax year 2025, California uses nine income tax brackets ranging from 1% to 12.30%. California also imposes an additional 1% Mental Health Services Tax on taxable income over $1 million, which can bring the effective top rate to 13.3% on income above that threshold.
California income tax rates and tax brackets
To estimate your California tax bill or refund, it helps to understand the state’s income tax brackets. Here’s a look at the income tax brackets for the state of California based on filing status. Below is a look at the CA state income tax brackets broken down by filing status. Visit the State of California website to see additional tax brackets pertinent to taxpayers in the state.
| Tax Rate | Single or Married Filing Separately | Married Filing Jointly or Surviving Spouse | Head of Household |
|---|---|---|---|
| 1% | $0 to $11,079 | $0 to $22,158 | $0 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 |
| 9.30% | $72,725 to $371,479 | $145,449 to $742,958 | $98,991 to $505,208 |
| 10.30% | $371,480 to $445,771 | $742,959 to $891,542 | $505,208 to $606,251 |
| 11.30% | $445,772 to $742,953 | $891,543 to $1,485,906 | $606,252 to $1,010,417 |
| 12.30% | Over $742,953 | Over $1,485,906 | Over $1,010,417 |
If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes.
California standard deduction
Single filers and those married filing separately are eligible to claim a standard deduction of $5,706 for tax year 2025. The standard deduction amount for those filing as head of household, married filing jointly, or qualifying surviving spouse is $11,412.
California’s standard deduction amounts are lower than the federal standard deduction. If someone else can claim you as a dependent on their return, your California standard deduction may be limited. You may claim the California standard deduction or itemize on your California return, depending on which option gives you the better result under California rules.
California exemptions
California does not use a traditional personal exemption deduction the way some states do. Instead, California offers exemption credits that directly reduce your California tax. For tax year 2025, the personal exemption credit is $153 for single filers, married filing separately, and head of household filers, and $306 for married filing jointly and qualifying surviving spouses.
California also allows a dependent exemption credit of $475 for each qualifying dependent you claim on your California return. Credits may be reduced if federal AGI exceeds the phaseout thresholds above.
California tax changes for 2025
For tax year 2025, California’s basic progressive income tax rate structure remains in place with nine brackets ranging from 1% to 12.30%, plus the 1% Mental Health Services Tax on income over $1 million. California annually indexes many amounts for inflation, including tax brackets, the standard deduction, and exemption credits.
Compared with 2024, the 2025 California standard deduction increased to $5,706 for single and married filing separately filers and $11,412 for married filing jointly, head of household, and qualifying surviving spouse filers. Personal and dependent exemption credit amounts also increased for 2025. California does not automatically conform to all federal tax law changes, so some federal updates may not apply on your California return.
FAQs
The bottom line
California has a progressive state income tax with nine 2025 tax rates ranging from 1% to 12.30%, plus an additional 1% tax on income over $1 million for some taxpayers. Knowing the California income tax brackets, standard deduction, and available exemption credits can help you estimate what you may owe — and what you may get back.
When you’re ready to file, TaxAct can help you prepare your federal and California returns in one place so you can file with confidence.
Already filed your taxes and waiting for your refund? Learn more about where your California state tax refund is.
This article is for informational purposes only and not legal or financial advice.
All TaxAct offers, products and services are subject to applicable terms and conditions.
The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.
Citations
California Franchise Tax Board. “Deductions.” Accessed 21 July 2026.
California Franchise Tax Board. “Exemption credits.” Accessed 21 July 2026.
California Franchise Tax Board. “2025 indexing.” Accessed 21 July 2026.
California Franchise Tax Board. “Income tax rates.” Accessed 21 July 2026.
TaxAct. “Working Families Tax Cuts Act: 2025 Tax Reform Explained.” TaxAct Blog.
TaxAct. “Where Is My California Tax Refund?” TaxAct Blog, 2 Feb. 2026.
