1. What is California Income Tax?

California uses a progressive income tax system with rates ranging from 1% to 13.3%. The tax is calculated by applying different rates to different portions of your income based on tax brackets.

2. How Does the Calculator Work?

The calculator uses California's progressive tax formula:

Where:

• \( Income\ in\ Bracket \) — The portion of income falling within each tax bracket
• \( Marginal\ Rate \) — The tax rate applicable to that specific bracket
• \( \sum \) — Summation of tax calculated across all applicable brackets

Explanation: Each portion of your income is taxed at progressively higher rates as you move into higher income brackets.

3. Understanding Progressive Taxation

Details: Progressive taxation means higher income earners pay a larger percentage of their income in taxes. California's top marginal rate of 13.3% is one of the highest state income tax rates in the United States.

4. Using the Calculator

Tips: Enter your taxable income in dollars and select your filing status. The calculator will compute your total California state income tax and effective tax rate.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between marginal and effective tax rate?
A: Marginal rate applies to your last dollar of income, while effective rate is your total tax divided by total income.

Q2: Are California tax brackets adjusted for inflation?
A: Yes, California tax brackets are adjusted annually for inflation.

Q3: What income is subject to California state tax?
A: All income from California sources, including wages, business income, investment income, and retirement income.

Q4: Are there deductions available?
A: Yes, California allows various deductions including standard deduction, itemized deductions, and specific tax credits.

Q5: When are California state taxes due?
A: Typically April 15th, matching the federal tax deadline, with extensions available.