How Paycheck Taxes Work in California
How paycheck taxes work in California: Your employer withholds federal income tax based on your W-4, then California state income tax using state withholding tables. Social Security (6.2%) and Medicare (1.45%) are also deducted from each paycheck. California imposes progressive state income tax and uses updated annual deduction amounts published by the Franchise Tax Board. Employers withhold based on DE 4 allowances. An additional 1% Behavioral Health Services Tax applies to taxable income over $1 million.
California State Tax Information
California has progressive rates from 1% up to 12.3% (plus Behavioral Health Services Tax on high earners).
California imposes progressive state income tax and uses updated annual deduction amounts published by the Franchise Tax Board. Employers withhold based on DE 4 allowances. An additional 1% Behavioral Health Services Tax applies to taxable income over $1 million.
California is a better state to model carefully when you are comparing job offers, relocations, or remote-work options because state withholding can materially change annual take-home pay.
Federal Income Tax
Federal income tax uses progressive brackets: higher income is taxed at higher rates, not all at one rate. The standard deduction reduces taxable income before brackets apply, and your W-4 affects how much is withheld through the year.
Social Security
Social Security tax (FICA) is 6.2% of wages up to the annual wage base ($184,500 in 2026). Both employee and employer pay this amount; this calculator shows the employee portion.
Medicare
Medicare tax is 1.45% on all wages with no cap. High earners pay an additional 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly).