California State Tax Brackets 2026: Complete Guide for Taxpayers
Understanding California’s state tax brackets is essential for effective financial planning and accurate tax filing. As one of the states with the highest marginal tax rates in the country, California uses a progressive tax system that applies different rates to different portions of your income. This comprehensive guide breaks down everything you need to know about California state tax brackets for the 2026 tax year (for returns filed in 2027), including comparisons to previous years and strategies to optimize your tax situation.
California State Tax Brackets for 2026
The California Franchise Tax Board (FTB) adjusts tax brackets annually to account for inflation. Below are the official California state income tax brackets for the 2026 tax year (for returns filed in 2027). These rates apply to income earned in 2026.
Single Filers and Married/RDP Filing Separately
| Taxable Income Range | Tax Rate | 2026 vs. 2025 Change |
| $0 to $11,079 | 1.00% | No change |
| $11,080 to $26,264 | 2.00% | No change |
| $26,265 to $41,452 | 4.00% | No change |
| $41,453 to $57,542 | 6.00% | No change |
| $57,543 to $72,724 | 8.00% | No change |
| $72,725 to $371,479 | 9.30% | No change |
| $371,480 to $445,771 | 10.30% | No change |
| $445,772 to $742,953 | 11.30% | No change |
| $742,954 and over | 12.30% | No change |
Married/RDP Filing Jointly and Qualifying Widow(er)
| Taxable Income Range | Tax Rate | 2026 vs. 2025 Change |
| $0 to $22,158 | 1.00% | No change |
| $22,159 to $52,528 | 2.00% | No change |
| $52,529 to $82,904 | 4.00% | No change |
| $82,905 to $115,084 | 6.00% | No change |
| $115,085 to $145,448 | 8.00% | No change |
| $145,449 to $742,958 | 9.30% | No change |
| $742,959 to $891,542 | 10.30% | No change |
| $891,543 to $1,485,906 | 11.30% | No change |
| $1,485,907 and over | 12.30% | No change |
Head of Household
| Taxable Income Range | Tax Rate | 2026 vs. 2025 Change |
| $0 to $22,173 | 1.00% | No change |
| $22,174 to $52,530 | 2.00% | No change |
| $52,531 to $67,716 | 4.00% | No change |
| $67,717 to $83,805 | 6.00% | No change |
| $83,806 to $98,990 | 8.00% | No change |
| $98,991 to $505,208 | 9.30% | No change |
| $505,209 to $606,251 | 10.30% | No change |
| $606,252 to $1,010,417 | 11.30% | No change |
| $1,010,418 and over | 12.30% | No change |
Note: Taxpayers with income over $1 million pay an additional 1% Mental Health Services Tax, effectively creating a top marginal rate of 13.3%.
How California’s Progressive Tax System Works
California uses a progressive tax system, which means you don’t pay a single rate on your entire income. Instead, you pay different rates on different portions of your income. This is similar to the federal income tax system.
For example, if you’re a single filer with a taxable income of $80,000 in 2026:
- You pay 1% on the first $11,079 ($110.79)
- You pay 2% on income between $11,080 and $26,264 ($303.68)
- You pay 4% on income between $26,265 and $41,452 ($607.48)
- You pay 6% on income between $41,453 and $57,542 ($965.40)
- You pay 8% on income between $57,543 and $72,724 ($1,214.48)
- You pay 9.3% on income between $72,725 and $80,000 ($676.88)
Your total California state income tax would be approximately $3,878.71, making your effective tax rate about 4.85% (total tax divided by total income), much lower than your top marginal rate of 9.3%.
California Standard Deduction for 2026
Before calculating your taxable income, you can reduce your adjusted gross income by taking either the standard deduction or itemizing your deductions, whichever gives you the greater benefit.
| Filing Status | 2026 Standard Deduction | 2025 Standard Deduction | Change |
| Single or Married/RDP Filing Separately | $5,706 | $5,706 | No change |
| Married/RDP Filing Jointly, Head of Household, or Qualifying Widow(er) | $11,412 | $11,412 | No change |
Key Filing Information for 2026 Tax Year
Understanding the essential deadlines and forms for California state taxes will help you stay compliant and avoid penalties.
Important Deadlines
- Filing Deadline: April 15, 2027, for the 2026 tax year
- Extension Deadline: October 15, 2027 (automatic 6-month extension to file, but not to pay)
- Estimated Tax Payment Deadlines: April 15, June 15, September 15, 2026, and January 15, 2027
Required Forms
- Form 540: California Resident Income Tax Return
- Form 540NR: California Nonresident or Part-Year Resident Income Tax Return
- Form 540 2EZ: Simplified tax form for certain taxpayers with simple tax situations
- Schedule CA (540): California Adjustments
California Tax Credits and Deductions for 2026
California offers several tax credits and deductions that can significantly reduce your tax liability. Here are some key opportunities to consider for the 2026 tax year:
Tax Credits
California Earned Income Tax Credit (CalEITC)
Available to low-to-moderate income working individuals and families. For 2026, taxpayers with income up to $32,900 may qualify for a credit of up to $3,756, depending on filing status and number of qualifying children.
Young Child Tax Credit (YCTC)
Available to CalEITC-eligible taxpayers with a child under 6. The maximum credit for 2026 is $1,189, phasing out for those with earned income above $27,425.
Child and Dependent Care Expenses Credit
A nonrefundable credit for expenses related to the care of a child, spouse, or dependent. The credit percentage depends on your income level.
Nonrefundable Renter’s Credit
If you paid rent for at least half of 2026 and your income was below certain thresholds ($53,994 for single/MFS, $107,987 for HOH/MFJ), you may qualify for a credit of $60 (single/MFS) or $120 (HOH/MFJ).
Deductions and Exemptions
- Senior Exemption Credit: Additional exemption credit for taxpayers 65 or older by December 31, 2026
- Dependent Exemption Credit: Available for each qualifying dependent
- Student Loan Interest Deduction: Up to $2,500 for qualified education loans
- Medical and Dental Expenses: Deductible to the extent they exceed 7.5% of federal adjusted gross income
Tax Planning Strategies for California Taxpayers
Effective tax planning can help you minimize your California tax liability. Consider these strategies for the 2026 tax year:
Retirement Contributions
Maximize contributions to tax-advantaged retirement accounts like 401(k)s, 403(b)s, and IRAs. California generally follows federal rules for pre-tax contributions, which can lower your taxable income.
Timing Income and Deductions
Consider accelerating deductions into the current year and deferring income to the next year if you expect to be in the same or lower tax bracket. Conversely, if you expect to be in a higher bracket next year, consider accelerating income and deferring deductions.
CalSavers Program
If your employer doesn’t offer a retirement plan, consider the CalSavers program, which allows you to contribute to an IRA through payroll deductions, potentially reducing your taxable income.
Review Withholding
Use the California DE 4 form to adjust your state withholding to ensure you’re not overpaying throughout the year, which amounts to giving the state an interest-free loan.
Local Taxes in California Cities and Counties
Unlike some states, California does not have local income taxes imposed by cities or counties. However, local taxation does exist in other forms:
Sales Tax
California has a base sales tax rate of 7.25%, but cities and counties can add their own district taxes, resulting in total rates that range from 7.25% to 10.25% depending on location.
Property Tax
Property taxes are assessed at the county level. Proposition 13 limits the property tax rate to 1% of a property’s assessed value, with assessed value increases capped at 2% annually unless there’s a change in ownership or new construction.
For specific local tax information, contact your county tax assessor’s office or visit the California Department of Tax and Fee Administration website for current sales tax rates in your area.
Future Outlook: California Tax Changes Beyond 2026
While predicting future tax changes with certainty is impossible, understanding potential developments can help with long-term planning:
Inflation Adjustments
California typically adjusts tax brackets, standard deduction amounts, and certain credits annually for inflation. These adjustments are usually announced in late fall for the upcoming tax year.
Proposed Legislation
As of this writing, there are no major confirmed changes to California’s tax structure beyond 2026. However, the state legislature regularly considers proposals that could affect future tax rates and brackets.
Budget Considerations
California’s tax policy is often influenced by the state’s budget situation. Economic downturns might lead to tax increases, while budget surpluses could result in tax relief or expanded credits.
Stay informed about potential tax changes by regularly checking the California Franchise Tax Board website or consulting with a tax professional for the most current information.
Special Tax Situations for California Residents
Certain taxpayers may face unique circumstances that affect their California tax obligations:
Part-Year Residents and Nonresidents
If you moved into or out of California during 2026, you’ll need to file Form 540NR. You’ll be taxed on:
- All income received while a California resident
- Income from California sources while a nonresident
Military Personnel
Active-duty military pay is taxed like normal income for California residents. However, if you’re stationed outside California, you may qualify for nonresident status even if you entered service from California.
Remote Workers
If you work remotely for an out-of-state employer while living in California, your income is generally subject to California tax. The state determines residency based on physical presence and other factors, not employer location.
Official Resources and Tools
For the most accurate and up-to-date information about California state taxes, consult these official resources:
California Franchise Tax Board
The official state agency responsible for administering California’s personal income tax. Visit their website for forms, publications, and the latest tax information.
California Tax Service Center
A partnership of tax agencies providing tax information and services to individuals and businesses in California.
California Department of Tax and Fee Administration
Provides information on sales and use tax, special taxes, and fees in California.
Conclusion: Preparing for Your 2026 California Taxes
Understanding California’s tax brackets and planning accordingly can help you optimize your tax situation and avoid surprises when filing your 2026 return. Remember that California’s progressive tax system means you pay different rates on different portions of your income, resulting in an effective tax rate that’s typically lower than your top marginal rate.
Keep records of potential deductions and credits throughout the year, stay informed about any tax law changes, and consider consulting with a tax professional for personalized advice, especially if you have a complex tax situation.
By taking a proactive approach to tax planning and utilizing available credits and deductions, you can minimize your California tax liability while remaining compliant with all state tax requirements.
