If you work or live in California, understanding how much of your paycheck you actually take home can feel complicated. California has one of the highest state income tax rates in the U.S., and your paycheck includes other deductions like federal income tax, FICA (Social Security and Medicare), and State Disability Insurance (SDI).
This guide explains — in simple, conversational terms — how to calculate taxes on a paycheck in California, step by step. You’ll see real examples, understand which deductions apply, and learn how to estimate your take-home pay accurately
Understanding California Paycheck Taxes
When you get paid, your employer withholds several taxes before you receive your net pay. Let’s break down what those are.
What’s Deducted From a California Paycheck
- Federal income tax: Based on your filing status and W-4 form.
- FICA taxes:
- Social Security – 6.2% of gross pay (up to the annual limit).
- Medicare – 1.45% of gross pay (plus 0.9% if you earn over $200,000).
- California state income tax: Progressive rates from 1% to 13.3%, depending on income level.
- California SDI (State Disability Insurance): 1.1% of wages (up to an annual wage limit).
- Pre-tax deductions: Contributions to 401(k), HSA, FSA, or health insurance.
- Post-tax deductions: After-tax benefits, union dues, or garnishments.
These combine to reduce your gross pay and determine what actually lands in your bank account — your net or take-home pay. For consistent income tracking, try the Ohio weekly calculator.
Step-by-Step: How to Calculate Your California Paycheck
Here’s how to figure out what you’ll actually take home each pay period.
Step 1 – Find Your Gross Pay
This is your total pay before taxes.
- Salary example: $75,000 ÷ 26 bi-weekly pay periods = $2,884.62 gross per paycheck.
- Hourly example: $30/hour × 40 hours = $1,200 gross per week.
Step 2 – Subtract Pre-Tax Deductions
Pre-tax deductions reduce your taxable income.
If you contribute $200 to a 401(k) and $100 to an HSA each paycheck:
$2,884.62 − $300 = $2,584.62 taxable income.
Step 3 – Estimate Federal Income Tax
Your employer uses IRS tax tables and your W-4 form to estimate this.
A single filer earning about $75,000 a year might have roughly $340–$380 withheld per paycheck in federal taxes.
Step 4 – Calculate FICA Taxes
FICA covers Social Security and Medicare.
- Social Security = 6.2% × $2,584.62 = $160.24
- Medicare = 1.45% × $2,584.62 = $37.47
Total FICA = $197.71
Step 5 – Subtract California State Income Tax
California’s income tax rates are progressive.
If your taxable income falls in the mid-range bracket (~9%), that means:
$2,584.62 × 9% = $232.62 in state tax.
Step 6 – Subtract SDI (State Disability Insurance)
All California employees contribute to SDI.
At 1.1%:
$2,584.62 × 1.1% = $28.43
Step 7 – Subtract Post-Tax Deductions
If you have $50 in post-tax deductions (like after-tax insurance), subtract that next.
Step 8 – Calculate Net (Take-Home) Pay
Use this formula:
Net Pay = Gross − (Federal Tax + FICA + State Tax + SDI + Post-Tax Deductions)
Plugging in the example:
$2,884.62 − ($350 + $197.71 + $232.62 + $28.43 + $50) = ≈ $2,026 take-home pay
So, for a $75,000 salary, your bi-weekly net pay is about $2,000, or roughly $52,700 per year after taxes. Bonus earners in Illinois can estimate post-tax pay with the bonus Illinois calculator.
California Paycheck Example (Hourly Worker)
| Description | Amount |
|---|---|
| Hourly Rate | $28 |
| Hours Worked | 40 |
| Gross Pay | $1,120 |
| Federal Income Tax | $120 |
| FICA (7.65%) | $85.68 |
| CA State Tax (8%) | $89.60 |
| SDI (1.1%) | $12.32 |
| Net Pay | $812.40 |
Check new tax slabs through the California tax calculator.
California Tax Brackets (2025 Estimates)
| Taxable Income | Tax Rate |
|---|---|
| Up to $10,099 | 1% |
| $10,100 – $23,942 | 2% |
| $23,943 – $37,788 | 4% |
| $37,789 – $52,455 | 6% |
| $52,456 – $66,295 | 8% |
| $66,296 – $338,639 | 9.3% |
| $338,640 – $406,364 | 10.3% |
| $406,365 – $677,275 | 11.3% |
| $677,276 – $1,000,000 | 12.3% |
| Over $1,000,000 | 13.3% |
How California Taxes Compare
| State | State Income Tax Rate | Net Pay (on $75,000 Salary) |
|---|---|---|
| California | 9% (avg.) | ~$52,700 |
| Texas | 0% | ~$56,800 |
| Florida | 0% | ~$56,800 |
| New York | 6.85% (avg.) | ~$53,000 |
If you’re relocating or comparing job offers, this difference can mean several thousand dollars more or less in your annual take-home pay. Federal workers can view deductions with the New York tax calculator.
How to Maximize Your Take-Home Pay in California
- Adjust your W-4 and DE-4: Avoid over-withholding federal or state taxes.
- Use pre-tax benefits: 401(k), HSA, and commuter benefits reduce taxable income.
- Track overtime or bonuses: These are taxed at supplemental rates and can bump your withholding.
- Review your pay stub: Ensure deductions are correct and your SDI contribution stops at the annual cap.
- Plan for local cost of living: California’s taxes are high, but so are living expenses — use your net pay to budget smartly.
Frequently Asked Questions
Do I pay local income tax in California?
No. California doesn’t impose local (city or county) income taxes, only state-level income tax.
What is SDI on my California paycheck?
SDI stands for State Disability Insurance, a 1.1% payroll tax that funds temporary disability and paid family leave.
Do pre-tax deductions lower California taxes?
Yes. Pre-tax contributions reduce your taxable income for both federal and California state income tax.
How are bonuses taxed in California?
Employers usually withhold a flat 10.23% for state tax on supplemental wages like bonuses, plus federal withholding.
How do I estimate my net pay?
Use this formula:Net = Gross − (Federal + FICA + State + SDI + Deductions)
Or use a calculator from SmartAsset or ADP for a quick estimate.
Bettye is the creator of CityPaycheckCalculator.com, a resource designed to help individuals quickly and accurately estimate their take-home pay across U.S. cities. With a strong focus on clarity, accuracy, and user experience, Bettye provides reliable paycheck calculators and helpful insights to support smarter financial decisions. Her mission is to make complex payroll and tax information simple and accessible for everyone.