California Income Tax Calculator

Overview of California Taxes

California has among the highest taxes in the nation. Sales and income taxes are generally high, but effective property tax rates are below the national average despite some of the highest median home values in the U.S.

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Taxes in California

California State Tax Quick Facts

• Income tax: 1% – 12.3%
• Sales tax: 7.25% – 10.25%
• Property tax: 0.71% median effective rate
• Gas tax: 70.92 cents per gallon of regular gasoline

California has among the highest taxes in the nation. Its base sales tax rate of 7.25% is relatively high, while its top marginal income tax rate of 12.3% is the highest state income tax rate in the country. The Golden State fares slightly better where real estate is concerned, though. The average homeowner pays just 0.71% of their actual home value in real estate taxes each year.

Of course, income tax rates will vary depending on each taxpayer’s individual finances. For example, if you earn less than $70,724 per year as a single filer, your marginal rate in California will be no higher than 8%.

A financial advisor can help you understand how taxes fit into your overall financial goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

California Income Taxes

California has a progressive income tax, which means rates are lower for lower earners and higher for higher earners. This is similar to the federal income tax system. In all, there are nine official income tax brackets in California, with rates ranging from as low as 1% up to 12.3%.

Technically, tax brackets end at 12.3% and there is a 1% tax on personal income over $1 million. As part of the Mental Health Services Act, this tax provides funding for mental health programs in the state. It functions like a normal income tax and means that the top marginal rate in California is, effectively, 12.3%. That’s the highest rate in the U.S., but it only applies to single filers with over $742,953 in taxable income and joint filers with taxable income of $1,485,906 or higher. The table below further demonstrates tax rates for Californians.

Income Tax Brackets

It’s important to note that those rates do not apply to actual income, but adjusted gross income. That is income after all applicable deductions and exemptions have been subtracted. Taxpayers in California may also be eligible for a number of tax credits, for financial events and expenses including childcare, buying a new home, the purchase of an electric vehicle and installing solar panels on their house.

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. Therefore, you will not be responsible for paying it.

California Sales Tax

California’s base sales tax is 7.25%. This means that regardless of where you are in the state, you will pay an additional 7.25% of the purchase price of any taxable good. Many cities and counties also enact their own sales taxes, so the maximum combined rate is 10.25%. The table below shows the combined state and county tax rates for each of the 58 counties in California.

Sales Tax Rates (Updated December 2025)

Most items are subject to these rates, but there are some exceptions, as well as certain products that face higher rates. Among the products on which sales taxes are not required are most groceries, prescription medicine and utilities like gas and electricity.

California Alcohol, Cigarette and Gas Taxes

Products that face separate tax rates include alcoholic beverages, tobacco products and gasoline. For alcohol and cigarettes, rates are assessed based on the quantity of the product purchased. Cigarettes, for example, face a tax rate of $0.87 per pack. For regular gasoline, there is a 70.92 cent per gallon excise tax.

California Property Tax

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.

However, the state’s high median home value ($759,500) means the typical homeowner pays $5,369 per year in property taxes. That’s over $2,000 more than the national median.

If you are looking to refinance or purchase a property in California using a mortgage, check out our guide to mortgage rates and getting a mortgage in the Golden State.

California Estate Tax

California has no estate tax. In some states, inheritances or gifts are subject to a special tax, in addition to the federal estate tax. This is not the case in California.

California Insurance Tax

Insurance premiums are taxable in California. The insurance tax is one of the largest sources of revenue for the state’s general fund. It is imposed on insurance premiums and paid by insurance companies, although in practice it may lead to higher rates for consumers.

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