How California paycheck taxes work in 2026
Five deductions come out of almost every California paycheck. Three are federal and the same in every state; two are Californian. Knowing which is which explains why a $100,000 salary turns into about $72,319 here but about $79,180 in Texas.
- Federal income tax — withheld with the IRS Publication 15-T percentage method using your W-4. The 2026 standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly; rates run from 10% to 37%.
- Social Security — 6.2% of wages up to $184,500. Earn more than that and your checks get bigger late in the year.
- Medicare — 1.45% of all wages, plus an extra 0.9% on wages above $200,000.
- California income tax — withheld with the EDD's exact-calculation method (Method B): wages minus the CA standard deduction, taxed at rates from 1.1% up to 14.63% in the withholding tables, minus a credit for each DE 4 allowance.
- CA SDI — 1.3% of every dollar, with no cap. It funds State Disability Insurance and Paid Family Leave.
California 2026 withholding rates at a glance
| Tax | Rate | Applies to |
|---|---|---|
| Federal income tax | 10% – 37% | Wages after pre-tax deductions and the W-4 adjustment |
| Social Security | 6.2% | First $184,500 of wages |
| Medicare | 1.45% (+0.9% over $200,000) | All wages |
| California income tax | 1.1% – 14.63% (withholding tables) | Wages after 401(k) and Section 125 deductions — HSA is taxable |
| CA SDI | 1.3% | All wages, no ceiling |
| CA bonus withholding | 10.23% | Bonuses and stock options (other supplemental pay 6.6%) |
Example: $75,000 a year in California
A single Californian earning $75,000 and paid every two weeks grosses $2,885 per paycheck. After $295 of federal withholding, $221 of FICA and $155 of California income tax and SDI, about $2,214 reaches the bank — $57,564 a year, an effective tax rate of 23.2%.
Hourly workers and overtime
California has the strictest overtime rules in the country: time-and-a-half after 8 hours in a day or 40 in a week, and double time after 12 hours in a day. Switch the calculator to Hourly wage and enter your typical weekly overtime and double-time hours to see what a heavy week really pays. For a quick conversion between hourly, weekly and yearly pay, use the hourly to salary calculator.
Bonuses are withheld differently
Employers usually withhold a flat 22% federal and 10.23% California tax on bonuses, plus FICA and SDI — often more than your real tax rate. The California bonus tax calculator shows what a bonus nets after those flat rates.
Ways to raise your take-home pay
- Check your W-4 and DE 4. A big refund every spring means you're over-withholding all year.
- Use pre-tax benefits. Each 401(k) dollar costs you roughly 75% of a dollar in take-home pay at $75k, because it skips federal and California income tax.
- Mind the HSA trap. HSA contributions save federal tax and FICA, but California still taxes them.