California Income Tax Calculator 2024: Income Tax Rate By State

California Income Tax Calculator

California Income Tax Calculator Living in California with an annual income of $70,000 means you will be taxed $10,448. This equates to an average tax rate of 10.94%. However, your marginal tax rate is 22%, which indicates that any additional income received will be taxed at this rate. It is essential to understand the difference between marginal and average tax rates as it impacts your overall tax liability. Marginal tax rates are significant for determining the impact of increased income on your taxes. Therefore, it is crucial to factor in both average and marginal tax rates when planning your finances and making decisions about your income.

Our income tax calculator can assist you in estimating how much tax you may owe on your taxable income. If your income is less than the 2023-2024 standard deduction based on your filing status and whether you’re aged 65 or older and/or blind, your tax liability will be $0. However, if your taxable income exceeds the standard deduction, you’ll be required to pay taxes as per the applicable tax rate. Our calculator factors in all the relevant deductions and exemptions to provide an accurate estimation of your tax liability. It’s a useful tool for individuals who want to plan their finances and ensure they’re adequately prepared for tax season.

What You Need To Know About California State Taxes

California requires residents and non-residents who receive income from a California source to pay taxes. The state’s income tax rates range between 1% to 12.3%, depending on the individual’s taxable income. Similarly, the sales tax rate ranges from 7.25% to 10.75%, based on the location where the purchase was made. It is important to note that some cities and counties in California may have their own additional sales tax rates, which can increase the overall sales tax rate in certain areas of the state. Additionally, California does not have a flat property tax rate; instead, it varies by location and is based on assessed property value.

California offers various tax deductions and credits to help reduce your state tax liability. Some of these include the standard deduction, itemized deduction, California earned income tax credit, child and dependent care credit, and college access tax credit. These credits can greatly benefit taxpayers in California by providing them with financial relief or incentives for certain expenses. It is important to understand these deductions and credits to maximize your savings on state taxes.

California Income Tax Brackets and Rates: Single or Married/Registered Domestic Partner Filing Separately

If your California taxable income is over: But not over: Your tax is:
1% of your income
$104.12 + 2% of the excess over $10,412
$389.56 + 4% of the excess over $24,684
$960.56 + 6% of the excess over $38,959
$1,867.88 + 8% of the excess over $54,081
$3,009.40 + 9.3% of the excess over $68,350
$29,122.59 + 10.3% of the excess over $349,137
$36,314.46 + 11.3% of the excess over $418,961
$67,876.49 + 12.3% of the excess over $698,271

California Income Tax Brackets & Rates: Married/Registered Domestic Partner Filing Jointly or Qualified Widow(er)

If your California taxable income is over: But not over: Your tax is:
1% of your income
$208.24 + 2% of the excess over $20,824
$779.12 + 4% of the excess over $49,368
$1,912.12 + 6% of the excess over $77,918
$3,735.76 + 8% of the excess over $108,162
$6,018.80 + 9.3% of the excess over $136,700
$58,245.18 + 10.3% of the excess over $698,274
$72,628.92 + 11.3% of the excess over $837,922
$135,752.98 + 12.3% of the excess over $1,396,542

California Income Tax Brackets and Rates: Head of Household

If your California taxable income is over: But not over: Your tax is:
1% of your income
$208.39 + 2% of the excess over $20,839
$779.03 + 4% of the excess over $49,371
$1,349.95 + 6% of the excess over $63,644
$2,257.21 + 8% of the excess over $78,765
$3,398.97 + 9.3% of the excess over $93,037
$38,905.16 + 10.3% of the excess over $474,824
$48,686.66 + 11.3% of the excess over $569,790
$91,610.73 + 12.3% of the excess over $949,649

Income Tax Deductions for California

Standard Deduction

In California, taxpayers have the choice to select either a standard or itemized deduction. For the year 2023, the standard deduction permits single filers or couples filing separately to reduce their taxable income by $5,363. In comparison, married couples filing jointly, heads of household, and eligible surviving spouses can deduct $10,726 from their taxable income. Deciding between standard and itemized deductions hinges on various factors such as individual tax situation, income level, and eligible deductions. Taxpayers should seek advice from a tax expert to determine which deduction method would be most advantageous for them.

The standard deduction is generally more straightforward than itemizing deductions since it involves only one fixed sum. In contrast, itemized deductions entail adding up all eligible expenses such as mortgage interest payments, charitable donations, medical expenses above a certain threshold, and state and local taxes paid. Those with high deductible expenses beyond the standard deduction may benefit more from itemizing deductions. However, for those with fewer deductible expenses than the standard deduction amount or those who prefer simplicity in their tax preparation process may find that taking the standard deduction is preferable. It’s always wise to consult with a professional before making any decisions regarding tax matters.

Itemized Deductions

In the event that the sums surpass the standard deduction, a taxpayer could qualify for the itemized deduction. In California, itemized deductions are permitted in the following manner:

  • Medical and dental expenses
  • Mortgage interest on home purchases up to $1,000,000
  • Job expenses and certain miscellaneous expenses
  • Gambling losses, which are deductible to the extent of gambling winnings

Disaster Loss Deduction

In the United States, taxpayers can claim a casualty loss resulting from a disaster declared by the President or governor. The loss must be due to a sudden, unexpected, or unusual event like an earthquake, fire, flood or other similar occurrence. A taxpayer is eligible for claiming the loss if they did not receive any insurance or reimbursement for the damaged or destroyed property. Casualty losses are deductible only to the extent that they exceed $100 and 10% of the adjusted gross income (AGI). If your casualty loss exceeds these limits, you may be able to carry it forward into future tax years. It is important to keep all records and documentation related to your casualty loss in case of an IRS audit.

IRA Deduction

If you’re contributing to an Individual Retirement Account (IRA), you may be eligible to claim a deduction for the amount contributed. It’s important to note that California follows the same guidelines as the federal government when it comes to IRA contributions. This means that if you’re eligible for a deduction on your federal tax return, you’ll likely be eligible for one on your state tax return as well. Keep in mind that there are limits on how much you can contribute and deduct each year, so it’s essential to review IRS regulations before making any contributions.

California State Income Tax Credits

Earned Income Tax Credit: The CalEITC or YCTC Tax Credits

If you have a low income (up to $30,950) and work in California, you are eligible to receive the California earned income tax credit (CalEITC). The credit amount varies from $285 to $3,529. Additionally, if your income is less than $30,931 and you have a qualifying child under 6 years old, you may also qualify for the young child tax credit (YCTC) and receive up to $1,117.

The Child and Dependent Care Credit

The child and dependent care credit is available to those who have paid for someone to take care of their child, dependent, or spouse while they were working. This credit can help reduce the amount of taxes that you owe but is nonrefundable, meaning it cannot result in a tax refund. The amount of credit you can receive depends on various factors such as your income, the number of dependents you have, and the amount you paid for childcare. It is important to keep accurate records and receipts of your childcare expenses to claim this credit accurately.

The College Access Tax Credit

In California, taxpayers have the opportunity to donate to a state fund that provides financial aid to low-income students for college tuition. This program aims to make higher education more accessible and affordable for those who otherwise would not be able to afford it. Individuals who donate can receive a tax refund of up to 50% of their contributions, making it an attractive option for those looking to give back while also receiving a financial benefit. This initiative highlights the importance of supporting education and ensuring equal opportunities for all students, regardless of their background or financial circumstances.

The Child Adoption Tax Credit

If you are a parent who adopted a child during the tax year, you may be eligible to claim up to 50% of the adoption expenses paid. The maximum credit allowed is $2,500 per child. Qualifying expenses may include court and attorney fees, travel expenses, and other necessary costs related to the adoption process. It’s important to keep all receipts and documentation as proof of your expenses when claiming this credit on your tax return.

Nonrefundable Rental Credit

If you have paid rent for at least half of the year, you may be eligible to claim a nonrefundable tax credit. The amount of the credit is $60 if you are single or married filing separately, and it is $120 for other filers. Keep in mind that there are income limits that apply to this credit. To claim this credit, make sure to file Form 1040 and attach Form 8863 to your tax return. It is also important to keep documentation such as rental receipts and lease agreements as proof of payment.

Senior Head of Household Tax Credit

The credit mentioned above is specifically designed for individuals aged 65 and above who meet certain criteria. The maximum amount that can be claimed under this credit is $1,748. It’s important to note that eligibility requirements for this credit may vary depending on the specific program or benefit being offered. Some of the common requirements include meeting income thresholds, living in a certain geographic area, or having a particular medical condition. If you think you may qualify for this credit, it’s recommended to consult with a tax or financial advisor to determine your eligibility and explore your options.

Do I Have to Pay Income Tax in California?

Filing a California tax return is mandatory if you receive income from California sources, surpass a particular income threshold, and fall under one of the following categories. Firstly, if you are a resident of California for tax purposes, regardless of where the income was earned. Secondly, if you are a non-resident with income derived from California sources that exceeds certain limits. Lastly, if you are a part-year resident with income from any source while being present in California for more than nine months during the taxable year. It is important to note that failure to file a tax return can result in penalties and interest charges.

  • Resident
  • Part-Year Resident
  • Nonresident

Residency Status

You qualify as a resident if you meet any of the following criteria:

  • You live in California with a non-temporary or non-transitory intention.
  • You live in California but are currently absent.

Sales Tax and Sales Tax Rates

California has a sales tax rate that varies from 7.25% to 10.75%. The sales tax rate includes a state tax and local taxes, which can vary based on where you are located in California. Additionally, certain products and services may be exempt from the sales tax or subject to a reduced rate. It’s important to keep in mind the sales tax rates when making purchases in California to avoid any surprises at checkout.

Property Taxes and Property Tax Rates

Property Tax Exemptions

California offers property tax exemptions for a variety of individuals and organizations, including homeowners, veterans, nonprofits and religious institutions, public schools, landlords, and owners of qualifying personal property like artworks. These exemptions are designed to provide financial relief to those who meet certain criteria. Homeowners can benefit from the homeowner’s exemption, which reduces the taxable value of their primary residence. Veterans may be eligible for the disabled veterans’ exemption or the veteran’s organization exemption. Nonprofit organizations and religious institutions may qualify for the welfare exemption. Public schools can receive exemption for owned properties while landlords may be eligible for the welfare exemption or low-income housing property tax exclusion. Owners of certain personal property like art may also qualify for a property tax exemption in California.

Capital Gains Taxes

For taxpayers in California, the reporting of gains and losses from the sale of capital assets is permitted. However, unlike federal income taxes that may have lower rates on capital gains, California taxes these gains as ordinary income. This means that the tax rate for capital gains in California is equal to the tax rate for regular income. As a result, it is important for taxpayers to understand how this can impact their overall tax liability and plan accordingly. Additionally, it is crucial to keep accurate records of all capital asset transactions throughout the year to ensure accurate reporting come tax season.

Inheritance and Estate Tax and Inheritance and Estate Tax Exemption

California is one of the few states in the USA that does not have an inheritance or estate tax. This means that when someone passes away, their assets can be transferred to their beneficiaries without any state-level tax implications. However, it’s important to note that there are federal estate tax laws that may still apply in certain situations. Additionally, individuals with significant assets may want to consider other estate planning strategies, such as trusts, to minimize tax liabilities and ensure their assets are distributed according to their wishes.

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Income Tax Rate By State

State Net Pay Effective State Tax Rate Rank
Alaska $ 62,340 0.00% 1
Florida $ 62,340 0.00% 1
Nevada $ 62,340 0.00% 1
New Hampshire $ 62,340 0.00% 1
South Dakota $ 62,340 0.00% 1
Tennessee $ 62,340 0.00% 1
Texas $ 62,340 0.00% 1
Washington $ 62,340 0.00% 1
Wyoming $ 62,340 0.00% 1
North Dakota $ 61,569 1.10% 10
Ohio $ 61,090 1.79% 11
Arizona $ 60,746 2.28% 12
Rhode Island $ 60,227 3.02% 13
Pennsylvania $ 60,191 3.07% 14
Louisiana $ 60,137 3.15% 15
Indiana $ 60,111 3.18% 16
New Jersey $ 60,019 3.32% 17
Colorado $ 59,830 3.59% 18
New Mexico $ 59,824 3.59% 18
Vermont $ 59,816 3.61% 20
Connecticut $ 59,765 3.68% 21
Wisconsin $ 59,599 3.92% 22
Michigan $ 59,577 3.95% 23
Mississippi $ 59,555 3.98% 24
California $ 59,552 3.98% 24
Oklahoma $ 59,552 3.98% 24
Missouri $ 59,502 4.05% 27
North Carolina $ 59,483 4.08% 28
Maryland $ 59,331 4.30% 29
Arkansas $ 59,185 4.51% 30
Idaho $ 59,149 4.56% 31
Kansas $ 59,135 4.58% 32
Alabama $ 59,105 4.62% 33
South Carolina $ 59,096 4.63% 34
Virginia $ 59,086 4.65% 35
Massachusetts $ 59,060 4.69% 36
West Virginia $ 59,045 4.71% 37
Washington, D.C. $ 59,031 4.73% 38
Nebraska $ 59,017 4.75% 39
Kentucky $ 59,015 4.75% 39
Maine $ 59,008 4.76% 41
Illinois $ 58,992 4.78% 42
Utah $ 58,982 4.80% 43
Delaware $ 58,958 4.83% 44
Georgia $ 58,953 4.84% 45
New York $ 58,926 4.88% 46
Minnesota $ 58,864 4.97% 47
Montana $ 58,744 5.14% 48
Iowa $ 58,535 5.43% 49
Hawaii $ 57,587 6.79% 50
Oregon $ 56,710 8.04% 51

How much is California state income tax?

Generally, the state of California requires you to pay taxes if you are a resident or nonresident that receives income from a California source. The state income tax rates range from 1% to 12.3%, and the sales tax rate is 7.25% to 10.75%.

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