California Tax Calculator 2023-2024: Estimate Your Taxes


These are the state tax rates and tax brackets that apply to income earned in 2023 (reported on 2024 returns). States may handle taxes differently than the federal government. Your state might have different brackets, or it might altogether use a different system. Colorado, for example, levies a flat income tax rate of 4.4% on taxable income, and some states, such as Wyoming, don’t levy a state income tax at all. California’s free eFile program allows all California taxpayers to instantly file their income tax return over the internet.

  1. For a complete listing of the FTB’s official Spanish pages, visit La página principal en español (Spanish home page).
  2. In California, different tax brackets are applicable to different filing types.
  3. In the September 2023 edition of Tax News, we informed you about the resumption of the business entity pre-suspension and suspension processes effective September 1, 2023.
  4. We welcome Judy Leid as our new Trade Media and Tax Practitioner Liaison.

Proposition 13, passed by California’s voters in 1978, sets the maximum allowable property tax rate at 1% of a home’s assessed value. It also limits increases in assessed value to 2% every year, except if the home has changed ownership or undergone construction. That law has helped keep Californians’ property tax payments below the national average, and in some cases, significantly so. Additionally, effective tax year 2023, the standard deduction and state deduction for federal taxes paid are repealed, broadening the base to help pay for reductions to the rate. (ll) For taxpayers with federal AGI that exceeds $150,000, the taxpayer will pay the greater of state income tax or 3 percent of federal AGI. (l) Exemption credits phase out for single taxpayers by $6 for each $2,500 of federal AGI above $229,908 and for MFJ filers by $12 for each $2,500 of federal AGI above $459,821.

How does California tax income?

Sales and income taxes are generally high, but effective property tax rates are below the national average. Arizona joined the growing list of states with a flat individual income tax structure, one year earlier than originally anticipated. 1828, tax triggers were established that set the state on a course to a 2.5 percent flat rate subject to reaching specified revenue targets. In some states, a large number of brackets are clustered within a narrow income band.

Federal Married (Joint) Filer Tax Tables

A marriage penalty typically occurs when two individuals with similar incomes marry; this is true for both high- and low-income couples. Elimination Act, which passed the House Rules Committee 8-5 on February 1st and may be considered on the House floor as soon as next week. The standard deduction, which California has, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction.

In California, state income taxes are generally among the highest in the country, but the burden is spread among different segments of the population. The rate of California income tax is arranged on something of a sliding scale, separated by income tax brackets. The bill includes $33 billion to expand the widely used child tax credit for three years — including the tax season currently underway, provided the bill quickly passes the Senate. The changes would allow more low-income families to access the credit and would allow many families to receive a larger credit. The figures would also be adjusted for inflation in the coming years. For 2024, the standard tax deduction for single filers has been raised to $14,600, a $750 increase from 2023.

For taxpayers with more than $100,000 in AGI, the dependent exemption is $300 per dependent. To e-file your California and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS. While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies. The deadline for filing your California income tax return is April 15.

California allows taxpayers to report gains and losses from the sale of capital assets. Unlike federal income taxes, which may involve lower rates on capital gains, the state of California taxes capital california tax brackets 2023 gains as ordinary income. The marginal tax rate is the tax rate paid on your last dollar of taxable income. Calculating your state tax liability when rates are progressive is a multi-step process.

Income Tax Rates

Judy participated in multiple projects and teams where she trained and developed staff and collaborated with various areas of the department. She successfully led auditors in which she reviewed their cases, provided constructive feedback, consulted on technical issues, and fostered a positive work environment. The Taxpayers’ Rights Advocate’s Office attracts many talented and dedicated individuals; however, we often do not keep them long due to the high visibility of their roles. As summer changes to fall, we bid farewell to one team member, and we welcome another team member.

Tax Data Sources:

The percentage of your taxable income that you pay in taxes is called your effective tax rate. To determine your effective tax rate, divide your total tax owed (line 16) on Form 1040 by your total taxable income (line 15). For example, if you’re a single filer in 2023 with $35,000 of taxable income, you would be in the 12% tax bracket. If your taxable income went up by $1, you would pay 12% on that extra dollar, too. The income thresholds for the 2023 tax brackets were adjusted significantly — up about 7% — from 2022 due to record-high inflation. This means that some people might be in a lower tax bracket than they were previously.

California tax brackets for Married/Registered Domestic Partner (RDP) Filing Separately taxpayers

(mm) The standard deduction begins to phase out at $18,400 in income for single filers and $26,550 in income for joint filers. The standard deduction phases out to zero at $124,733 for single filers and $145,976 for joint filers. Federal deductions and exemptions are indexed for inflation, and where applicable, the tax year 2023 inflation-adjusted amounts are shown. (c) For single taxpayers with AGI below $25,500, the standard deduction is $3,000. This standard deduction amount is reduced by $25 for every additional $500 of AGI, not to fall below $2,500. For Married Filing Joint (MFJ) taxpayers with AGI below $25,500, the standard deduction is $8,500.

Since this law was chaptered in 2023, estimated tax underpayment penalties will not apply to any underpaid estimated tax payments for the 2023 taxable year. This is the same deadline applicable to taxpayers who qualified for the NEC prior to the recent expansion. Newly eligible taxpayers in one of the four newly qualifying industries, and only for employees hired during their 2023 taxable year, must obtain a reservation by one month after the end of their 2023 taxable year. For example, a calendar year taxpayer who hires a qualified employee in 2023 will have until January 31, 2024, to get a reservation for that employee. Payments made by check must include the appropriate FTB voucher and be separated by payment type and tax year.

So, you can expect to see slight adjustments to the tax brackets each year. The city of San Francisco levies a gross receipts tax on the payroll expenses of large businesses. Although this is sometimes conflated as a personal income tax rate, the city only levies this tax on businesses. The technical term is a “progressive tax structure” — which simply means the more you earn, the higher your tax rate is.

The Tax tables below include the tax rates, thresholds and allowances included in the California Tax Calculator 2023. Each bracket will see a roughly 5.4% shift upward from 2023, which means taxpayers whose salaries haven’t been keeping up with inflation might be able to shelter more income from higher tax rates this year. The 2024 tax rates, which range from 10% to 37%, remain the same as in previous years. California’s maximum marginal income tax rate is the 1st highest in the United States, ranking directly below California’s %.

(jj) The phaseout range for the standard deduction, personal exemption, and dependency exemption is $233,750 to $260,550. For taxpayers with modified Federal AGI exceeding $260,550, no standard deduction, personal exemption, or dependency exemption is available. For single taxpayers, the deduction must be between $2,460 and $5,540. For joint taxpayers, the deduction must be between $4,920 and $11,080. Find out about your state taxes—property taxes, tax rates and brackets, common forms, and much more.