California Income Tax Brackets 2023-2024

Here are the 2023 California state income tax brackets (taxes filed in 2024). California has a graduated income tax, with rates ranging from 1% to 13.30%.

For California residents due date for filing tax returns is Monday, April 15, 2024.

California Single Taxpayers Or Married Filing Separately

Married/Registered Domestic Partner Filing Jointly

California Head of Household

Source: California Franchise Tax Board

About the California State Income Tax

• California residents have to pay income tax at the state and federal levels and are based on taxable income as well as your filing status.
• The 9 California state tax rates are 1%, 2%, 4%, 6%, 8%, 9.3%, 10.3%, 11.3% and 12.3%.
• A 1% mental health services tax applies to income exceeding $1 million.
• You don’t have just one “tax bracket” – you pay all of the California marginal tax rates from the lowest tax bracket to the tax bracket in which you earned your last dollar.
• California state tax brackets and income tax rates depend on taxable income and filing status.
• Residency status also determines what’s taxable.
• The personal income tax brackets are indexed by the rate of inflation, AKA CPI, each year (see below for a more detailed explanation).
• The California inflation rate (CPPI) for the tax year 2022 is 8.3% (2023 TBA). Measured from May to the current tax year, June. The California tax rate is unchanged, however the income tax brackets increase due to the annual inflation adjustment.

The following is updated annually:

• State income tax brackets
• Filing requirement thresholds
• The standard deduction
• Certain credits for inflation (based on the California Consumer Price Index (CCPI)

What is the Consumer Price Index (CPI)?

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a fixed market basket of goods and services. The CPI provides a way to compare what this market basket of goods and services costs this month with what the same market basket cost, say, a month or year ago.

The U.S. Department of Labor (DOL) calculates the CPI for the U.S. and markets within the U.S.

What is the California Consumer Price Index (CCPI)?

Each year the California Tax Rates and Exemptions are based on the California Consumer Price Index (CCPI) as prescribed in the Revenue and Taxation Code.

The California Department of Industrial Relations (DIR) calculates the California CPI by calculating the weighted average of the DOL CPI for Los Angeles-Long Beach-Anaheim, San Francisco-Oakland-Hayward, San Diego-Carlsbad, and Riverside-San Bernardino-Ontario markets.

Annually the inflation rate, as measured by the CCPI for all urban consumers is from June of the previous year to June of the current tax year.

The DIR has a Consumer Price Index Calculator that will show the inflation between two time periods and by index markets.

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Monique McArthur is a mother of two, writer, and creator of delicious recipes. In her spare time she enjoys exploring all that Orange County has to offer, traveling, shopping, running with her dogs and spending time with family.