California Paycheck Calculator 2025

Calculate your exact take-home pay in California with our free paycheck calculator. California has some of the highest state income tax rates in the nation, ranging from 1% to 13.3%, making it crucial to understand how much you'll actually net from your paycheck. Our calculator accounts for all California-specific taxes and deductions including state income tax, State Disability Insurance (SDI), and local taxes where applicable.

Understanding California State Income Tax

California uses a progressive tax system with nine tax brackets for 2025. For single filers, rates range from 1% on the first $10,412 of taxable income up to 12.3% on income over $698,271. Additionally, California imposes a 1% Mental Health Services Tax on income exceeding $1 million, bringing the top marginal rate to 13.3%. Married filing jointly taxpayers have brackets with the same rates but doubled income thresholds.

This progressive system means different portions of your income are taxed at different rates. Someone earning $75,000 doesn't pay 9.3% on all their income—they pay 1% on the first $10,412, 2% on income between $10,412 and $24,684, and so on, with only the top portion taxed at 9.3%. Understanding this marginal rate concept is essential for accurate paycheck estimation.

California State Disability Insurance (SDI)

California requires most employees to pay State Disability Insurance tax, which provides partial wage replacement if you become unable to work due to non-work-related illness, injury, or pregnancy. The 2025 SDI rate is 1.1% of wages up to the taxable wage limit of $153,164, meaning maximum annual SDI withholding is $1,684.80. This mandatory deduction reduces your take-home pay but provides important income protection if you need short-term disability benefits or paid family leave.

Take-Home Pay Examples for California

Let's examine what various salaries translate to in California take-home pay for a single filer with standard deductions:

$60,000 Annual Salary: After federal income tax (~$5,700), FICA taxes ($4,590), California state tax (~$2,400), and SDI ($660), your annual take-home pay is approximately $46,650, or $3,888 per month. This represents about 78% of gross pay. Compared to a no-tax state like Texas, you're taking home approximately $2,400 less annually due to California state taxes.

$100,000 Annual Salary: With federal tax (~$13,200), FICA ($7,650), California state tax (~$6,900), and SDI ($1,100), annual take-home pay is approximately $71,150, or $5,929 per month. This is about 71% of gross pay. Compared to Texas, you're taking home approximately $6,900 less annually—enough to fund a Roth IRA contribution and still have money left over.

$150,000 Annual Salary: After federal tax (~$25,300), FICA ($11,475), California state tax (~$13,600), and SDI ($1,650), take-home pay is approximately $98,000, or $8,167 monthly. This represents 65% of gross pay. The California tax penalty here is approximately $13,600 annually compared to no-tax states—a substantial difference that accumulates to $136,000 over ten years.

California Local Taxes and Special Districts

Most California residents don't pay local income taxes, as the state doesn't authorize cities and counties to impose separate income taxes. However, some special assessments and district taxes may apply depending on your specific location. If you work in San Francisco, your employer pays a gross receipts tax that doesn't directly affect your paycheck but may influence wages. Always verify with your employer if any additional local withholdings apply to your specific situation.

Pre-Tax Benefits in California

Given California's high tax rates, maximizing pre-tax deductions provides substantial savings. Contributing to a traditional 401(k) in California saves 13.3% at the top state bracket plus federal taxes, making the total marginal savings potentially exceed 50%. Someone in the 9.3% state bracket and 24% federal bracket saves 33.3% plus FICA on certain deductions, making each dollar contributed cost only 60-70 cents in reduced take-home pay.

Health Savings Accounts, Flexible Spending Accounts, and employer-provided health insurance premiums all reduce taxable income for both federal and California purposes. For a high-income California resident, maxing out an HSA at $8,550 for a family can save over $3,200 in combined federal and state taxes annually—making the true cost of the contribution only $5,300 while building tax-free medical savings.

Moving to or from California: Tax Residency Considerations

California has strict tax residency rules and aggressively pursues income tax from those it considers California residents. If you move out of California, you must establish residency elsewhere by spending more than 6 months outside California, registering to vote in your new state, getting a driver's license there, and demonstrating intent to make it your permanent home. California can tax you on all income while you're a resident, even if earned outside California. If you work remotely for a California company after establishing residence elsewhere, you generally don't owe California tax on that income, but there are exceptions for certain business ownership situations.

Comparing California to Other States

California's high income tax rates make it one of the highest-taxed states in America. A $100,000 earner in California takes home approximately $6,900-7,500 less annually than the same earner in Texas, Florida, or other no-tax states. Over a 30-year career, this difference accumulates to over $200,000 in additional taxes paid, not counting investment returns on money that could have been saved. However, California offers advantages including strong job markets in tech and entertainment, diverse geography and climate, and extensive public services. The decision to live in California involves weighing these tax costs against lifestyle, career opportunities, and personal preferences.

Conclusion

Understanding your California take-home pay is essential for budgeting, financial planning, and comparing job offers. California's progressive tax system, combined with SDI and federal taxes, can reduce your gross pay by 25-40% depending on income level. Use our calculator to get precise estimates for your specific situation, and consider maximizing pre-tax deductions to minimize your tax burden while building financial security.