California Paycheck Tax Guide for 2026
Navigate California's progressive tax system. Learn about state disability insurance and how it affects your take-home pay.
California has one of the most comprehensive and progressive personal income tax systems in the United States. Understanding how California payroll taxes work is essential for accurate financial planning, whether you're a resident or considering a move to the Golden State.
California State Income Tax Brackets
California's personal income tax is progressive, with rates ranging from 1% to 12.3% for regular income. The tax brackets for 2026 are:
- 1% on income up to $10,412
- 2% on income between $10,412 - $24,684
- 4% on income between $24,684 - $38,959
- 6% on income between $38,959 - $53,996
- 8% on income between $53,996 - $67,907
- 9.3% on income between $67,907 - $350,000
- 10.3% on income between $350,000 - $500,000
- 11.3% on income between $500,000 - $1,000,000
- 12.3% on income over $1,000,000
California State Disability Insurance (SDI)
California workers contribute 1.1% of their wages (up to $153,164 in 2026) to State Disability Insurance. SDI provides partial wage replacement for workers unable to work due to disability, and also funds Paid Family Leave benefits.