How California withholds income tax in 2026
- Low-income exemption. If annual wages are at or below $18,896 (single) or $37,791 (married with two or more allowances, or head of household), nothing is withheld.
- Standard deduction. $5,706 for single filers and dual-income married couples, $11,412 for married filers with two or more allowances and for head of household.
- Rate table. Taxable wages run through EDD's annual table for your filing status (below).
- Allowance credit. Subtract $168.30 for each regular DE 4 allowance. The calculator assumes 1 for single, 2 for married (one income), and 1 for head of household. DE 4 gives one allowance for yourself and one for your spouse, with none specific to head of household. Claim more on your DE 4 and your withholding drops.
California's DE 4 lumps dual-income married couples in with single filers. Here, Married filing jointly means EDD's "Married (one income)" schedule.
These are withholding schedules. The tax you owe on Form 540 can differ.
2026 California withholding rates (annual, EDD Method B)
Single or dual-income married
| Taxable income | Rate on excess | Plus |
|---|---|---|
| $0 – $11,079 | 1.1% | $0.00 |
| $11,079 – $26,264 | 2.2% | $121.87 |
| $26,264 – $41,452 | 4.4% | $455.94 |
| $41,452 – $57,542 | 6.6% | $1,124.21 |
| $57,542 – $72,724 | 8.8% | $2,186.15 |
| $72,724 – $371,479 | 10.23% | $3,522.17 |
| $371,479 – $445,771 | 11.33% | $34,084.81 |
| $445,771 – $742,953 | 12.43% | $42,502.09 |
| $742,953 – $1,000,000 | 13.53% | $79,441.81 |
| over $1,000,000 | 14.63% | $114,220.27 |
Married (one income)
| Taxable income | Rate on excess | Plus |
|---|---|---|
| $0 – $22,158 | 1.1% | $0.00 |
| $22,158 – $52,528 | 2.2% | $243.74 |
| $52,528 – $82,904 | 4.4% | $911.88 |
| $82,904 – $115,084 | 6.6% | $2,248.42 |
| $115,084 – $145,448 | 8.8% | $4,372.30 |
| $145,448 – $742,958 | 10.23% | $7,044.33 |
| $742,958 – $891,542 | 11.33% | $68,169.60 |
| $891,542 – $1,000,000 | 12.43% | $85,004.17 |
| $1,000,000 – $1,485,906 | 13.53% | $98,485.50 |
| over $1,485,906 | 14.63% | $164,228.58 |
Head of household
| Taxable income | Rate on excess | Plus |
|---|---|---|
| $0 – $22,173 | 1.1% | $0.00 |
| $22,173 – $52,530 | 2.2% | $243.90 |
| $52,530 – $67,716 | 4.4% | $911.75 |
| $67,716 – $83,805 | 6.6% | $1,579.93 |
| $83,805 – $98,990 | 8.8% | $2,641.80 |
| $98,990 – $505,208 | 10.23% | $3,978.08 |
| $505,208 – $606,251 | 11.33% | $45,534.18 |
| $606,251 – $1,000,000 | 12.43% | $56,982.35 |
| $1,000,000 – $1,010,417 | 13.53% | $105,925.35 |
| over $1,010,417 | 14.63% | $107,334.77 |
Source: EDD, California Withholding Schedules for 2026, Method B Tables 5–7.
SDI and pre-tax benefits: where California differs from federal
State Disability Insurance (SDI) is withheld at 1.3% in 2026. Since January 1, 2024 there has been no wage cap, so every dollar is subject. The calculator shows it on its own line.
- 401(k) deferrals reduce California income-tax wages but are still subject to SDI, just as they're still subject to FICA.
- Section 125 health premiums and FSAs come out before California income tax and before SDI.
- HSA contributions are taxed by California. They reduce federal taxable wages but not California's, and SDI still applies. Enter an HSA amount and watch the state line.
California cities and counties do not withhold a local income tax from employee wages. Many cities and counties do set local minimum wages above the state rate, which this calculator does not apply.
California daily overtime
California is one of the few states that pays overtime by the day. The California overtime calculator applies the rules automatically:
- 1.5x for hours over 8 in a workday, up to 12.
- 2x for hours over 12 in a workday.
- On the seventh consecutive workday in a workweek: 1.5x for the first 8 hours, 2x after that.
- 1.5x for hours over 40 in the workweek that aren't already daily overtime.
Example: four 12.5-hour days at $30 an hour comes to 32 regular hours, 16 at 1.5x, and 2 at 2x, or $1,800.00 a week. A weekly-only rule would pay $1,650.00.
California doesn't allow a tip credit. Tipped workers must get at least the $16.90 state minimum wage before tips.
California take-home pay at common salaries
| Salary | Federal | CA state + SDI | FICA | Take-home / yr | Per biweekly check |
|---|---|---|---|---|---|
| $40,000.00 | $2,620.00 | $1,160.96 | $3,060.00 | $33,159.04 | $1,275.35 |
| $60,000.00 | $5,020.00 | $2,583.48 | $4,590.00 | $47,806.52 | $1,838.71 |
| $85,000.00 | $9,870.00 | $5,130.98 | $6,502.50 | $63,496.52 | $2,442.17 |
| $120,000.00 | $17,570.00 | $9,166.48 | $9,180.00 | $84,083.52 | $3,233.98 |
Single filer, paid biweekly, no pre-tax deductions, 2026 rules. Computed by the same engine as the calculator above.
California paycheck FAQs
- What is the California SDI rate for 2026?
- 1.3% of wages, with no annual wage cap, so there is no maximum contribution.
- How much is taken out of an $85,000 salary in California?
- For a single filer paid biweekly with one allowance: federal income tax $9,870.00, California income tax $4,025.98, SDI $1,105.00, Social Security $5,270.00, and Medicare $1,232.50. That leaves $63,496.52 a year, or $2,442.17 per paycheck.
- Does California tax HSA contributions?
- Yes. Payroll HSA contributions lower federal taxable wages, but California still taxes them for income tax and SDI.
- How does California daily overtime work?
- Hours over 8 in a day are paid at 1.5x and hours over 12 at 2x, whatever your weekly total. The seventh consecutive workday earns 1.5x for the first 8 hours and 2x after that. Hours over 40 in the week also earn 1.5x.
- Why is no California tax withheld from my small paycheck?
- EDD's low-income exemption: if annualized wages are $18,896 or less (single), or $37,791 or less (married with two or more allowances, or head of household), no state income tax is withheld. SDI is still withheld.
- Can California employers pay tipped workers less than minimum wage?
- No. California doesn't allow a tip credit. Tipped employees must get the full $16.90 state minimum wage before tips, and some cities set higher minimums.
Sources for California figures
Every California figure on this page was last checked on against these sources:
- California Withholding Schedules for 2026 — Method B, Exact Calculation Method (Tables 1–7) — California Employment Development Department (tax year 2026, checked 2026-10-18)
- DE 4 (2026), Employee’s Withholding Allowance Certificate — Worksheet A (1 allowance for yourself, 1 for your spouse; no separate head-of-household allowance) — California Employment Development Department (tax year 2026, checked 2026-10-18)
- Rates and Withholding — 2026 SDI withholding rate (1.3%); all wages subject to SDI since January 1, 2024 — California Employment Development Department (tax year 2026, checked 2026-10-18)
- DE 231TP, Information Sheet: Types of Payments — 401(k) employee deferrals (subject to SDI, not PIT), Section 125 benefits (not subject to SDI), HSA contributions (subject to SDI and PIT) — California Employment Development Department (tax year 2026, checked 2026-10-18)
- Overtime — Frequently Asked Questions (general overtime provisions) — California Department of Industrial Relations, Labor Commissioner’s Office (tax year 2026, checked 2026-10-18)
- Minimum Wages for Tipped Employees (table effective July 1, 2026) — California listed among states requiring full state minimum wage before tips — U.S. Department of Labor, Wage and Hour Division (tax year 2026, checked 2026-10-18)
Federal figures: see the methodology page.
Nearby states
More California pay tools
- California daily overtime calculator
- California tipped wage calculator
- All state paycheck calculators
- How the CA math works
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