California Paycheck Calculator

How to Use the California Paycheck Calculator

Our California paycheck calculator helps you understand exactly how much money you'll take home after federal taxes, California state income tax, State Disability Insurance (SDI), and other deductions. Whether you're considering a move to California, starting a new job in San Francisco or Los Angeles, negotiating a salary, or planning your budget, this tool provides accurate calculations based on 2024 federal and California state tax rates.

Step-by-Step Instructions

1. Enter Your Salary or Hourly Rate: Input your annual salary or hourly wage. California's high cost of living means salaries are often higher here, but so are taxes. If you're paid hourly, select "Hourly Rate" and enter your hours per week.

2. Select Your Pay Frequency: Choose how often you get paid - bi-weekly, semi-monthly, weekly, or monthly. This affects how much is withheld per paycheck.

3. Choose Your Filing Status: Select single, married filing jointly, or head of household. California has different tax brackets for each filing status.

4. Enter Federal Allowances: From your W-4 form. This affects federal withholding only, not California state tax.

5. Add Pre-Tax Deductions: Include 401(k) contributions and other pre-tax deductions. These reduce both federal and California taxable income.

6. Click Calculate: See your take-home pay and detailed breakdown including CA state tax and SDI.

Understanding Your Results

Gross Pay: Your total earnings before deductions. California salaries are typically higher than the national average, especially in tech hubs like Silicon Valley.

Federal Income Tax: Same IRS rates as all states, using 2024 federal tax brackets.

California State Tax: California uses nine tax brackets with rates from 1% to 13.3%. High earners pay significantly more. The top rate of 13.3% applies to income over $1 million for single filers.

Social Security Tax: 6.2% on wages up to $168,600 (2024 limit).

Medicare Tax: 1.45% on all wages, plus 0.9% additional Medicare tax for high earners.

California SDI (State Disability Insurance): 1.1% of all wages (2024). As of January 1, 2024, the wage cap was eliminated through Senate Bill 951, so SDI now applies to your entire salary. This provides short-term disability benefits and paid family leave, and is unique to California.

Take-Home Pay: What actually hits your bank account. In California, this is typically 60-70% of gross pay for middle to high earners, compared to 70-80% in low-tax states.

California State Tax Information (2024)

California Income Tax Rates

California has nine tax brackets with progressive rates:

• 1% on income up to $10,412 (single) / $20,824 (married)
• 2% on income $10,413-$24,684 / $20,825-$49,368
• 4% on income $24,685-$38,959 / $49,369-$77,918
• 6% on income $38,960-$54,081 / $77,919-$108,162
• 8% on income $54,082-$68,350 / $108,163-$136,700
• 9.3% on income $68,351-$349,137 / $136,701-$698,274
• 10.3% on income $349,138-$418,961 / $698,275-$837,922
• 11.3% on income $418,962-$698,271 / $837,923-$1,396,542
• 12.3% on income over $698,271 / $1,396,542
• 13.3% (Mental Health Tax) on income over $1,000,000

California Standard Deduction

For 2024:

• Single: $5,363
• Married filing jointly: $10,726
• Head of household: $10,726

California State Disability Insurance (SDI)

California requires employees to pay SDI at 1.1% of wages. Important change: As of January 1, 2024, California eliminated the SDI wage cap through Senate Bill 951. The 1.1% tax now applies to your entire salary, regardless of amount.

Previously, SDI only applied to the first $153,164 of wages. Now it applies to all wages with no limit.

This provides:

• Short-term disability benefits if you can't work due to non-work-related illness or injury
• Paid Family Leave (PFL) for bonding with a new child or caring for a seriously ill family member
• Maximum weekly benefit: $1,620 in 2024

Common Paycheck Scenarios in California

Example 1: Entry-Level Tech Worker ($70,000/year in Bay Area)

A single filer making $70,000 annually, paid bi-weekly, with 5% 401(k) would take home approximately $50,000/year or $1,923 per paycheck. Federal tax: ~$6,500, CA state tax: ~$3,000, FICA & SDI: ~$6,000, 401(k): $3,500.

Example 2: Mid-Level Professional ($120,000/year)

A single filer making $120,000 annually in California would take home approximately $81,000/year or $3,115 per bi-weekly paycheck (with 6% 401(k)). CA state tax alone: ~$7,500/year. The same salary in Texas would net about $7,000 more annually.

Example 3: Senior Tech Worker ($180,000/year)

A married filer making $180,000 annually with 10% 401(k) would take home approximately $115,000/year or $4,423 per bi-weekly paycheck. CA state tax: ~$12,000/year. High earners feel California's tax burden most acutely.

Example 4: High Earner ($250,000/year)

A single filer making $250,000 in California takes home approximately $152,000/year or $5,846 per bi-weekly paycheck (with 15% 401(k)). CA state tax: ~$20,000/year. The 9.3% marginal rate hits hard at this income level.

Example 5: Million-Dollar Earner

A single filer making $1,000,000 in California faces the top 13.3% state tax rate. Take-home: approximately $530,000/year after all taxes and max 401(k). CA state tax: ~$120,000/year. The same person in Texas would save $120,000 annually on state taxes alone.

Cost of Living vs. Tax Burden in California

The California Paradox: High Salaries, High Taxes, High Costs

California offers some of the highest salaries in the nation, especially in tech, entertainment, and finance. However, these benefits are offset by:

• Highest state income tax: Up to 13.3%, costing high earners $10,000-$100,000+ annually
• High cost of living: Housing in SF Bay Area and LA is 2-3x the national average
• High sales tax: Combined state and local rates up to 10.75%
• Expensive gas: Often $1-2 more per gallon than other states

When Does It Make Financial Sense?

Working in California makes sense when:

• Your salary is significantly higher than what you'd earn elsewhere (typically 30-50% more)
• You're in tech, entertainment, or another industry centered in CA
• Career advancement opportunities outweigh tax costs
• You're building valuable experience or connections

Tax Comparison: California vs. Other States

$100,000 salary comparison:

• California take-home: ~$68,000 (32% total tax burden)
• Texas take-home: ~$75,000 (25% total tax burden) - $7,000 more
• New York take-home: ~$70,000 (30% total tax burden) - $2,000 more
• Florida take-home: ~$75,000 (25% total tax burden) - $7,000 more

Strategies to Reduce Your California Tax Burden

1. Maximize Retirement Contributions

Contributing to 401(k) or traditional IRA reduces both federal and California taxable income. Max 401(k) contribution ($23,000 in 2024) saves you approximately $5,100 in California taxes alone for someone in the 9.3% bracket, plus federal savings.

2. Health Savings Account (HSA)

If you have a high-deductible health plan, HSA contributions are triple tax-advantaged and reduce California state taxes. 2024 limits: $4,150 individual, $8,300 family.

3. Flexible Spending Accounts (FSA)

Healthcare and dependent care FSAs reduce taxable income. 2024 limits: $3,200 healthcare FSA, $5,000 dependent care FSA.

4. Consider Remote Work from Another State

California taxes all income earned while physically present in California. If your employer allows permanent remote work in another state, you can avoid California income tax entirely (but must establish residency elsewhere).

5. Review Your W-4 Withholding

Optimize federal withholding to avoid overpaying. California's DE 4 form controls state withholding - adjust if you're getting large refunds.

6. Take Advantage of California Tax Credits

California offers various tax credits including:

• Young Child Tax Credit (YCTC)
• Foster Youth Tax Credit
• California Earned Income Tax Credit (CalEITC)
• Renter's Credit

Frequently Asked Questions

Why is my California paycheck so small?

California has the highest state income tax in the US (up to 13.3%). Combined with federal taxes, Social Security, Medicare, and SDI, your total tax burden can be 30-45% of gross income, significantly higher than most states.

Do I have to pay California state tax if I work remotely?

If you're a California resident working remotely for an out-of-state company, yes - California taxes all income of residents regardless of where it's earned. If you're a non-resident working remotely from another state, you generally don't owe California tax.

What is California SDI and do I have to pay it?

State Disability Insurance (SDI) is mandatory for most California employees. It's 1.1% of all wages. Important: As of January 1, 2024, California eliminated the SDI wage cap. Previously capped at $153,164, SDI now applies to your entire salary with no limit. SDI provides short-term disability benefits and paid family leave.

Should I move out of California to save on taxes?

The decision depends on many factors beyond taxes: career opportunities, family, quality of life, and cost of living. Many people move to Texas, Florida, Nevada, or Washington to avoid state income tax. A $150,000 earner saves approximately $10,000-12,000 annually by moving to a no-tax state.

How do I establish residency in another state?

California is aggressive about claiming residents. To establish residency elsewhere: get a driver's license in the new state, register to vote there, update bank accounts, spend more than 183 days outside California, and document your intent to leave permanently.

Are stock options and RSUs taxed differently in California?

Stock options and RSUs are taxed as ordinary income in California when they vest or are exercised. California's high tax rates make equity compensation less valuable here than in no-tax states. Capital gains are also taxed as ordinary income in California, unlike federal treatment.

Can I deduct California state tax on my federal return?

Yes, but it's limited. The SALT (State and Local Tax) deduction is capped at $10,000 since 2018, significantly impacting California taxpayers who previously deducted their full state income tax.

What happens if I move to California mid-year?

You'll file as a part-year resident and pay California tax only on income earned while a California resident. The transition can be complex - consider consulting a tax professional.