California Income Tax Rates and Brackets

Tax Rates

California Income Tax Rates

California's nine regular individual income tax rates are 1%, 2%, 4%, 6%, 8%, 9.3%, 10.3%, 11.3%, and 12.3%. The table below lists the nine regular tax brackets and adds a tenth row for the additional 1% Behavioral Health Services Tax. The income ranges differ by filing status, but each rate applies only to the portion of taxable income within that bracket. Reaching a higher bracket does not cause all of your income to be taxed at the higher rate.

California also imposes a separate 1% Behavioral Health Services Tax, sometimes called the California millionaire tax, on taxable income over $1 million. This additional tax applies only to the amount above $1 million. When it is added to the regular 12.3% top rate, California's maximum combined marginal income tax rate is 13.3%. The table shows that the same 1% rate and $1 million threshold apply to every filing status. Unlike most regular bracket thresholds, the $1 million threshold is not doubled for Married Filing Jointly, which can create a marriage penalty for some couples.

Deductions

California Income Tax Deductions

California deductions reduce the taxable income to which the state's tax brackets and rates are applied. Taxpayers generally claim either the California standard deduction or eligible itemized deductions. Personal and dependent exemptions do not reduce taxable income on the 2025 federal Form 1040 or California return.

California instead provides personal and dependent exemption credits, which reduce state income tax after it is calculated rather than reducing taxable income. California deduction and credit amounts and eligibility rules do not always match their federal counterparts. The following sections explain California's standard deduction, personal and dependent exemption treatment, and itemized deductions for 2025.

California's Standard Deduction

California has a standard deduction, although its amounts are lower than the federal standard deduction. For the 2025 tax year, the California standard deduction amounts for most taxpayers are:

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

Taxpayers who can be claimed as a dependent must calculate a limited standard deduction instead of automatically using the amounts above. Married Filing Separately taxpayers and their spouses must either both claim the standard deduction or both itemize deductions on their separate California returns.

California Personal Exemptions

California does not provide a personal exemption deduction from taxable income. Instead, it provides a nonrefundable personal exemption credit of $153 for each allowable personal exemption in 2025. A Single, Married Filing Separately, or Head of Household taxpayer can generally claim one credit. Married Filing Jointly and Qualifying Surviving Spouse taxpayers can generally claim two, for a total of $306. The credit cannot be claimed for someone who can be claimed as another taxpayer's dependent and may be reduced at higher federal adjusted gross income levels.

California Dependent Deduction

California does not allow a dependent deduction from taxable income. Instead, it provides a nonrefundable dependent exemption credit of $475 for each qualifying dependent in 2025. Because it is a credit rather than a deduction, it reduces California income tax after the tax is calculated. The credit may be reduced at higher federal adjusted gross income levels.

California Itemized Deductions

California taxpayers may choose between the standard deduction and eligible itemized deductions. These deductions are reported and adjusted on Schedule CA (540) and may include medical expenses, mortgage interest, charitable contributions, and other qualifying expenses. California does not follow every federal deduction rule, so California itemized deductions may differ from the amount claimed on the federal return.

A taxpayer may itemize deductions on the California return even after claiming the standard deduction on the federal return. In that case, the taxpayer must complete federal Schedule A before completing Schedule CA (540). California also allows certain employee expenses and miscellaneous itemized deductions that are unavailable on the 2025 federal return. California itemized deductions may be reduced at higher federal adjusted gross income levels. Married Filing Separately taxpayers and their spouses must either both itemize or both claim the standard deduction on their separate California returns.

California does not allow an itemized deduction for state and local income taxes, State Disability Insurance, or state and local general sales taxes. Qualifying real and personal property taxes may still be deductible, and California does not follow the 2025 federal state and local tax (SALT) deduction limit. These differences are reported as adjustments on Schedule CA (540).

Credits

California State Tax Credits

California offers refundable and nonrefundable tax credits that directly reduce state income tax. A refundable credit can produce or increase a refund even when no California income tax is owed. A nonrefundable credit can reduce tax to zero but cannot by itself create a refund. Eligibility depends on income, family size, qualifying expenses, and other requirements. Several commonly claimed California tax credits for 2025 include:

California Earned Income Tax Credit (CalEITC)

The refundable CalEITC is available to qualifying workers whose California earned income and federal adjusted gross income are each no more than $32,900 for 2025. A taxpayer must have at least $1 of earned income to qualify. Maximum credit amounts range from $302 for a taxpayer with no qualifying children to $3,756 for a taxpayer with three or more qualifying children.

California Young Child Tax Credit (YCTC)

The refundable Young Child Tax Credit provides up to $1,189 per eligible 2025 tax return. It is generally available to taxpayers with a qualifying child under age six who qualify for the CalEITC or would otherwise qualify except for having no earned income. No earned income is required for 2025, although federal adjusted gross income, earned-income, and net-loss limits apply. The credit begins to phase out when earned income exceeds $27,425 and is eliminated when earned income exceeds $32,900.

California Child and Dependent Care Expenses Credit

This nonrefundable credit may be available when a taxpayer pays for qualifying care in California so the taxpayer can work or look for work. The person receiving care must generally be a qualifying child under age 13 or a spouse or dependent who is incapable of self-care. The taxpayer must have earned income and federal adjusted gross income of $100,000 or less. The California credit is calculated as a percentage of the federal credit, using qualifying expenses limited to $3,000 for one qualifying person or $6,000 for two or more qualifying people.

California Child Adoption Costs Credit

This nonrefundable credit may be claimed for the year a qualifying adoption becomes final. The adopted child must be a United States citizen or legal resident who was in the custody of a California public agency or political subdivision. The credit equals 50% of eligible adoption costs, up to $2,500 per minor child. Qualifying costs may include adoption agency fees, unreimbursed medical expenses, and travel directly related to the adoption. Any excess credit may be carried forward to future years until it is used.

California Senior and Blind Exemption Credits

California provides a nonrefundable senior exemption credit of $153 for each qualifying taxpayer or spouse who was age 65 or older at the end of 2025. It also provides a nonrefundable blind exemption credit of $153 for each qualifying taxpayer or spouse who meets California's visual impairment requirements. These credits cannot be claimed for someone who can be claimed as another taxpayer's dependent and may be reduced at higher federal adjusted gross income levels.

California Nonrefundable Renter's Credit

California residents who paid rent on their principal residence in California for at least six months during 2025 may qualify for the Nonrefundable Renter's Credit. The credit is generally $60 for Single or Married Filing Separately taxpayers and $120 for Married Filing Jointly, Head of Household, or Qualifying Surviving Spouse taxpayers. California income must generally be $53,994 or less for the $60 credit or $107,988 or less for the $120 credit, and additional eligibility requirements apply.

Due Dates

California State Income Tax Deadline

The deadline to file a 2025 California individual income tax return and pay any balance due is April 15, 2026. California provides an automatic filing extension through October 15, 2026, but the extension does not postpone the April deadline for paying tax owed. Interest and penalties may apply to unpaid balances after the original due date.

If you missed a California filing deadline, do not assume it is too late. You may still be able to file a 2025, 2024, or 2023 return and claim any refund due. Taxpayers with no unpaid tax generally do not owe the ordinary late-filing or late-payment penalties, but California limits how long a taxpayer has to claim a refund. Visit our California state tax forms page to find Form 540, instructions, and other forms for current and prior tax years.