California Paycheck Calculator

How your California paycheck is calculated

Your employer starts with your gross pay: your salary divided by the number of paychecks, or your hourly rate times the hours you worked. In California, overtime is counted by the day, not just by the week (see below), so hourly workers often earn more overtime here than in other states.

Next come pre-tax deductions such as a 401(k), health insurance or a flexible spending account. These lower your taxable income. One California twist: HSA contributions are not tax-free at the state level, so they reduce your federal tax but not your California tax.

Then your employer withholds:

1. Federal income tax, based on your W-4 and the 2026 brackets (10% to 37%) after the $16,100 standard deduction for single filers.
2. Social Security: 6.2% of wages up to $184,500.
3. Medicare: 1.45% of all wages, plus 0.9% above $200,000.
4. California income tax, based on your DE 4 form and the state brackets.
5. California SDI, a flat percentage of all wages.

Whatever is left is your net pay.

California income tax brackets

California has nine brackets, from 1% to 12.3%, and they are adjusted for inflation every year. On top of that, the Mental Health Services Tax adds 1% on taxable income above $1 million, for a top rate of 13.3%.

The FTB publishes the 2026 schedule near the end of the year. Swap in the 2026 numbers when they are released (the brackets rise a little with inflation). Married/RDP brackets are double the single amounts.

California also has a standard deduction ($5,706 for single filers, $11,412 for joint, 2025) and a personal exemption credit ($153 single, $306 joint, 2025) that lower your state tax.

California SDI (State Disability Insurance)

SDI funds disability insurance and Paid Family Leave in California. Since 2024 there has been no wage cap, so every dollar of wages is taxed, including high salaries.

• 2026 SDI rate: 1.3% of all wages (up from 1.2% in 2025)
• Withheld from employees only. Employers do not pay it.
• It appears on your pay stub as "CA SDI" or "CASDI".

California overtime rules (daily overtime)

California is stricter than federal law. Non-exempt employees get:

• 1.5× pay for hours over 8 in a workday or over 40 in a workweek
• 1.5× pay for the first 8 hours on the 7th consecutive day of work in a workweek
• 2× pay (double time) for hours over 12 in a workday, and over 8 hours on the 7th consecutive day

Example: if you work four 10-hour days (40 hours), federal law gives no overtime, but California gives you 8 hours of overtime (2 hours a day × 4 days).

Overtime is taxed like normal wages when withheld. The federal "no tax on overtime" deduction (tax years 2025–2028) can lower your federal tax on the overtime premium when you file, but California does not follow it, so the state still taxes all of your overtime. See our overtime tax calculator.

Worked example: $75,000 salary in California

Single filer, paid every two weeks (26 paychecks), no pre-tax deductions.

Federal income tax (exact, 2026):

• Taxable income = $75,000 − $16,100 = $58,900
• 10% × $12,400 = $1,240
• 12% × $38,000 = $4,560
• 22% × $8,500 = $1,870
• Total = $7,670

FICA: Social Security 6.2% × $75,000 = $4,650; Medicare 1.45% × $75,000 = $1,087.50

California income tax (2025 FTB schedule, latest published):

• Taxable = $75,000 − $5,706 standard deduction = $69,294
• 1% + 2% + 4% + 6% bands = $1,987.41; 8% × $11,752 = $940.16 → ~$2,927.57
• Minus $153 personal exemption credit → ≈ $2,775

CA SDI: 1.3% × $75,000 = $975

That is roughly 77% of gross pay kept, an effective total tax rate of about 23%.

California paycheck laws worth knowing

• Minimum wage 2026: $16.90 an hour statewide (up from $16.50 in 2025), with higher local rates in many cities, plus the separate fast-food and health-care minimum wages.
• Pay frequency: most employees must be paid at least twice a month on regular paydays.
• Final paycheck: due immediately if you're fired, or within 72 hours if you quit without notice (immediately if you gave 72 hours' notice).
• Pay stub: must show gross and net pay, hours, rates, deductions and the pay period (Labor Code 226).

How to take home more in California

1. Contribute to a 401(k) or 403(b). It lowers both federal and California tax.
2. Use a health FSA or dependent-care FSA. California follows these.
3. Check your DE 4 separately from your federal W-4, since California uses its own form.
4. Look into the California Earned Income Tax Credit (CalEITC) and the Young Child Tax Credit if your income is lower.
5. Claim the federal overtime or tips deduction when you file if it applies to you (federal only).

Sources

• IRS — Rev. Proc. 2025-32 (2026 brackets and standard deduction)
• Social Security Administration — 2026 wage base
• California Franchise Tax Board (ftb.ca.gov) — tax rate schedules
• California EDD (edd.ca.gov) — SDI rate, DE 4
• California Department of Industrial Relations (dir.ca.gov) — overtime, minimum wage, pay laws