California on top of federal tax
California taxes wages with nine brackets from 1% to 12.3%, plus 1% on taxable income over $1 million (FTB tax rate schedules). It has its own standard deduction ($5,706 single) and a personal exemption credit of $153 (FTB Form 540).
Every dollar of wages also pays State Disability Insurance at 1.3%, with no ceiling since 2024 (EDD).
California's brackets
| Taxable income | Rate |
|---|---|
| $0 – $11,079 | 1% |
| $11,079 – $26,264 | 2% |
| $26,264 – $41,452 | 4% |
| $41,452 – $57,542 | 6% |
| $57,542 – $72,724 | 8% |
| $72,724 – $371,479 | 9.3% |
| $371,479 – $445,771 | 10.3% |
| $445,771 – $742,953 | 11.3% |
| over $742,953 | 12.3% |
Married couples filing jointly get brackets roughly twice as wide. On top of these rates: 1% on taxable income over $1 million, and 1.3% SDI on all wages.
California vs Texas, salary by salary
| Salary | CA income tax | CA SDI | Take-home in CA | Take-home in TX | TX keeps more |
|---|---|---|---|---|---|
| $60,000 | $1,640 | $780 | $47,970 | $50,390 | $2,420 |
| $90,000 | $4,125 | $1,170 | $66,850 | $72,145 | $5,295 |
| $110,000 | $5,985 | $1,430 | $78,800 | $86,215 | $7,415 |
| $150,000 | $9,705 | $1,950 | $102,136 | $113,791 | $11,655 |
| $250,000 | $19,005 | $3,250 | $160,927 | $183,182 | $22,255 |
| $400,000 | $33,336 | $5,200 | $239,291 | $277,827 | $38,536 |
To keep the same take-home as $150,000 in Texas, you would need about $170,182 in California.
A worked example
On $150,000, California taxable income is $144,294 after its standard deduction. State income tax comes to $9,705 after the exemption credit, and SDI to $1,950. Federal tax and FICA are the same as in Texas.
Take-home is $102,136 in California against $113,791 in Texas. At this salary each extra dollar faces 24% federal, 9.3% California, 1.45% Medicare, 6.2% Social Security and 1.3% SDI: you keep 58% of it.
What KeptOffer assumes
- California publishes its 2026 brackets, standard deduction and exemption credit late in the year. Until then the 2025 FTB figures are used, and the result says so; indexation usually moves them by a few dollars.
- Contributions to a 401(k) and pre-tax health premiums reduce California taxable wages. HSA contributions do not in California, and are not modelled here.
- Local taxes: California has no city wage taxes for most residents.
Questions people ask
Is California the highest-tax state?
Its top rate is the highest in the country, but at moderate salaries its rates are lower than they look. The table above shows the real gap with Texas at each salary.
Why is SDI so large at high salaries?
Since January 2024 SDI has no wage ceiling, so it is 1.3% of every dollar.
Does the 1% extra apply to everyone?
Only to taxable income above $1 million.