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California income tax: rates, refunds & payment

Picture of H&CO H&CO : Jul 24, 2023 9:38:36 AM

Tax
California income tax: rates, refunds & payment
California income tax: rates, refunds & payment
8:16

As we approach the end of the tax year, we ponder what the next season will hold for us. As taxpayers, we seek clear answers while our minds are haunted by uncertainties.

At H&CO, we have prepared this basic guide so that as a taxpayer you know how the tax rate system works, when and where IRS refunds are, and the payment systems available to stay up to date with your taxes.

 

Federal income tax rate in California?

California does not impose a federal income tax rate, as federal income tax is levied by the U.S. Internal Revenue Service (IRS) on the taxable income of individuals, corporations, trusts, and estates.

However, California has its own state income tax system, which is progressive and ranges from 1% to 12.3%, depending on the income level.

 

What are California state income tax rates?

California state income tax rates for the year 2025 are as follows:

  • Ranging from 1% to 12.3%
  • Depend on your income and filing status
  • Adjusted for the 2024 - 2025 taxes
  • Progressive tax system
  • Different tax rates than federal rates
  • Wider tax brackets for joint filers.

>> Read about: Income Tax Planning for Individuals 

CA tax brackets for single filers

Tax rate

Taxable income bracket

Tax owed

1%

$0 to $10,756.

1% of taxable income.

2%

$10,757 to $25,499.

$107.56 plus 2% of the amount over $10,756.

4%

$25,500 to $40,245.

$402.42 plus 4% of the amount over $25,499.

6%

$40,246 to $55,866.

$992.26 plus 6% of the amount over $40,245.

8%

$55,867 to $70,606.

$1,929.52 plus 8% of the amount over $55,866.

9.3%

$70,607 to $360,659.

$3,108.72 plus 9.3% of the amount over $70,606.

10.3%

$360,660 to $432,787.

$30,083.65 plus 10.30% of the amount over $360,659.

11.3%

$432,788 to $721,314.

$37,512.83 plus 11.3% of the amount over $432,787.

12.3%

$721,315 or more.

$70,116.38 plus 12.3% of the amount over $721,314.

Source: California Franchise Tax Board.

 

CA tax brackets for married filing jointly

Tax rate

Taxable income bracket

Tax owed

1%

$0 to $21,512.

1% of taxable income.

2%

$21,513 to $50,998.

$215.12 plus 2% of the amount over $21,512.

4%

$50,999 to $80,490.

$804.84 plus 4% of the amount over $50,998.

6%

$80,491 to $111,732.

$1,984.52 plus 6% of the amount over $80,490.

8%

$111,733 to $141,212.

$3,859.04 plus 8% of the amount over $111,732.

9.3%

$141,213 to $721,318.

$6,217.44 plus 9.3% of the amount over $141,212.

10.3%

$721,319 to $865,574.

$60,167.30 plus 10.3% of the amount over $721,318.

11.3%

$865,575 to $1,442,628.

$75,025.67 plus 11.3% of the amount over $865,574.

12.3%

$1,442,629 or more.

$140,232.77 plus 12.3% of the amount over $1,442,628.

Source: California Franchise Tax Board.

CA tax brackets for married filing separately

Tax rate

Taxable income bracket

Tax owed

1%

$0 to $10,756.

1% of taxable income.

2%

$10,757 to $25,499.

$107.56 plus 2% of the amount over $10,756.

4%

$25,500 to $40,245.

$402.42 plus 4% of the amount over $25,499.

6%

$40,246 to $55,866.

$992.26 plus 6% of the amount over $40,245.

8%

$55,867 to $70,606.

$1,929.52 plus 8% of the amount over $55,866.

9.3%

$70,607 to $360,659.

$3,108.72 plus 9.3% of the amount over $70,606.

10.3%

$360,660 to $432,787.

$30,083.65 plus 10.30% of the amount over $360,659.

11.3%

$432,788 to $721,314.

$37,512.83 plus 11.3% of the amount over $432,787.

12.3%

$721,315 or more.

$70,116.38 plus 12.3% of the amount over $721,314.

Source: California Franchise Tax Board.

Note: If your taxable income is $100,000 or less, you must use the tax table on the California Franchise Tax Board's website to accurately calculate your taxes owed.

 

Who is required to pay state income tax in California?

You need to file a California state tax return if you are a resident, part-year resident, or non-resident, and one or more of the following apply to you:

  1.  You must file a federal tax return.
  2. You earned income from a source in California during the tax year.
  3. Your income is above certain limits.

 

California state tax credits

Tax credits lower the amount of taxes you owe. Some credits may be refundable, which means if the credit is more than what you owe, you can get the extra back as a refund.

If you haven't filed your taxes yet or are filing late, here is a list of popular tax credits available in California for the 2023 tax year (to be filed in 2024). This page will be updated with information on 2024 credits when it becomes available.

» MORE: Popular federal income tax breaks to know about

Young Child Tax Credit

The Young Child Tax Credit (YCTC) is a state tax credit similar to the federal child tax credit. To qualify, you must be eligible for the California Earned Income Tax Credit (EITC) and have a child under 6 years old by the end of the 2023 tax year. The maximum credit for 2023 is $1,117. If your earned income is $25,775 or more, the credit starts to decrease. It is not available if you earn more than $30,931.

 

How to track your California state tax refund

If you have filed your California state income tax return and expect a refund, you can check the status of your refund in a few ways. The California Franchise Tax Board has a refund tracking service that works like the federal "Where's My Refund?" tool. To use this tracker, enter your Social Security number, ZIP code, the exact refund amount you expect, and your mailing address.

 

California Franchise Tax Board: how to pay

The California Franchise Tax Board administers and collects the California personal and corporate franchise tax and income tax.

FTB provides various payment options, including direct bank account transfers through our free Web Pay service and online credit card payments, which may incur fees.

>> Make a payment:  https://www.ftb.ca.gov/pay/index.html 

 

How we can assist you

We are a tax and accounting firm based in South Florida, but we serve the entire country. Our professionals know the laws and regulations in force to perform the task of preparing and advising individuals on their annual returns.

>> For more information, please fill out the form and our advisors will contact you shortly to discuss your case.

 
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