What is the 1% mental-health surcharge?

California's Mental Health Services Act adds an extra 1% tax on the portion of taxable income above $1,000,000. It applies on top of the top marginal bracket, making California's effective top rate one of the highest in the US.

What is California SDI?

State Disability Insurance is a payroll deduction funding disability and paid family leave. As of 2024 the wage cap was removed, so SDI applies to all wages at the current rate (around 1.1%).

How many brackets does California have?

California has a 9-bracket progressive structure from 1% up to 12.3%, plus the 1% mental-health surcharge above $1M, giving an effective top marginal rate of 13.3%.

Does this include federal tax?

No. This calculates California state income tax, SDI, and the surcharge only. Use a federal calculator separately for your full picture.

No. It is an educational estimate that ignores credits and itemized deductions. Consult a tax professional or the FTB for filing.

California State Income Tax Calculator

This California State Income Tax Calculator estimates what a California W-2 earner owes the Franchise Tax Board. California has one of the most progressive state systems in the US: nine brackets from 1% to 12.3%, plus a 1% Mental Health Services surcharge on income above $1,000,000, pushing the top effective rate to 13.3%. The tool also adds State Disability Insurance (SDI), a mandatory payroll deduction.

How it works

Taxable income = gross wages − California standard deduction ($5,363 single, $10,726 married filing jointly for 2024). Floored at $0.
State income tax is computed bracket by bracket across California’s 9 rates (1%, 2%, 4%, 6%, 8%, 9.3%, 10.3%, 11.3%, 12.3%), each slice taxed at its own rate.
Mental-health surcharge = 1% of the portion of taxable income above $1,000,000.
SDI = the current SDI rate (about 1.1%) on all wages — the wage cap was removed in 2024.

Example

A single filer earning $120,000: taxable income = $120,000 − $5,363 = $114,637. The progressive brackets yield roughly $7,400 in state income tax. Add SDI (~$1,320) for a combined California burden near $8,700 — an effective state rate around 7.3%, below the 9.3% bracket the last dollar sits in. No surcharge applies because income is under $1M.

Tips and notes

The 1% surcharge only ever touches income above $1,000,000, so most filers never see it. SDI is technically an insurance contribution rather than income tax, but it reduces take-home pay all the same, so it is included here. This estimate ignores credits, itemized deductions, and federal tax. For filing, consult a tax professional or the California FTB.