How the California Paycheck Calculator Works

This calculator breaks down your California paycheck by accounting for federal income tax, California state income tax, FICA taxes (Social Security and Medicare), and California’s State Disability Insurance (SDI). California has one of the highest state tax burdens in the US, with rates ranging from 1% to 13.3% depending on income.

The calculation follows this formula:

Here’s the breakdown. Your gross pay gets reduced first by pre-tax deductions (401(k), health insurance, HSA). That gives you taxable income. Federal income tax applies using 2025 IRS brackets based on your W-4 filing status and allowances. California state tax applies using 2025 CA brackets based on your DE 4 filing status and allowances. Social Security takes 6.2% of gross pay up to $176,100. Medicare takes 1.45% of all wages, plus 0.9% Additional Medicare Tax on earnings over $200,000 (single) or $250,000 (married). California SDI takes 1.1% of wages up to $145,600 annually (capped at $1,601.60 per year).

What remains is your net pay. That’s what hits your bank account.

Understanding California Income Taxes

Gross vs. Net Pay in California

California’s tax burden creates a massive gap between gross and net pay. A $100,000 salary sounds great, but after federal tax (22%), California state tax (9.3%), FICA (7.65%), and SDI (1.1%), you’re looking at roughly $68,000-70,000 net. That’s a 30-32% total tax hit. Compare that to Texas where the same salary nets around $75,000-77,000 because there’s no state income tax.

Always think in net terms when budgeting, comparing job offers, or planning major purchases. Gross income is what companies promise. Net income is what you can actually spend.

California State Tax Rates (2025)

California uses progressive tax brackets. Single filers pay 1% on the first $10,412, then 2% on income from $10,413 to $24,684, scaling up to 9.3% on income from $61,215 to $312,686, and topping out at 13.3% on income over $1,127,104. These brackets shift slightly for married filers and heads of household.

The 9.3% bracket kicks in around $61,000 for single filers. That means middle-income earners already face a near-10% state tax rate before even hitting six figures. High earners in the 13.3% bracket (California’s top rate) pay more in state tax than many people pay in total federal tax.

What Is SDI and Why Does It Matter?

California State Disability Insurance (SDI) is a mandatory payroll deduction that funds short-term disability and paid family leave benefits. The 2025 rate is 1.1% of wages up to $145,600 annually. Once you hit that cap ($1,601.60 total), you stop paying SDI for the rest of the year.

If you make $150,000 per year, you’ll hit the SDI cap around late October or early November. Your paychecks get slightly bigger after that because SDI stops deducting. Most people don’t notice this, but it’s a real bump if you’re paying attention.

Federal vs. California Allowances

You have two separate withholding forms. The federal W-4 controls federal income tax withholding. California’s DE 4 controls state tax withholding. These don’t have to match. You might claim 1 federal allowance and 2 California allowances if you want less state tax withheld per paycheck.

More allowances means less tax withheld now and a smaller refund (or bigger bill) at tax time. Fewer allowances means more withheld now and a bigger refund later. Most people claim the same number on both forms to keep things simple.

Real California Paycheck Examples

Annual Salary	Gross Biweekly	Federal Tax	CA State Tax	FICA + SDI	Net Biweekly
$50,000	$1,923.08	$165.00	$85.00	$168.00	$1,505.08
$75,000	$2,884.62	$315.00	$185.00	$252.00	$2,132.62
$100,000	$3,846.15	$530.00	$290.00	$336.00	$2,690.15
$150,000	$5,769.23	$980.00	$535.00	$504.00	$3,750.23
$200,000	$7,692.31	$1,480.00	$780.00	$630.00	$4,802.31

Note: Examples assume single filing status, 1 allowance, no pre-tax deductions. Actual amounts vary based on individual circumstances.

Edge Cases and Common Questions

What If I Move to California Mid-Year?

You’ll pay California state tax only on income earned while living in California. If you move from Texas to California in July, your first six months of income aren’t subject to California tax. Your last six months are. File a part-year resident return when you do your taxes. Your employer should start withholding California state tax once you update your address and submit a DE 4.

What If I Work Remotely for a California Company But Live Elsewhere?

You pay taxes where you physically work, not where your employer is based. If you live in Nevada and work remotely for a San Francisco company, you don’t pay California income tax. You pay Nevada income tax (which is zero because Nevada has no state income tax). Your employer should withhold based on your state of residence.

What If My Income Jumps Due to a Bonus?

Bonuses often get withheld at 22% federal plus 10.23% California (supplemental wage rates). If your regular tax bracket is lower, you’ll get the difference back at tax time. If it’s higher, you’ll owe more. Either way, bonuses boost your annual income and can push you into higher tax brackets for both federal and state.

What If I Max Out Social Security or SDI?

Social Security caps at $176,100 in wages for 2025. Once you hit that, Social Security tax stops for the year. SDI caps at $145,600. High earners see bigger paychecks late in the year once these caps hit. For example, someone making $200,000 stops paying Social Security around late September and SDI around late August.

What If I Have Stock Options or RSUs?

Restricted Stock Units (RSUs) and stock option exercises count as ordinary income. They get taxed at your regular rates (federal, state, FICA, SDI). California doesn’t give preferential treatment to equity compensation the way some states do. A $50,000 RSU vest gets taxed like a $50,000 bonus, meaning roughly 40-50% goes to taxes depending on your bracket.

What If I’m Paid Semi-Monthly vs. Biweekly?

Semi-monthly is 24 paychecks per year (twice a month, usually 15th and last day). Biweekly is 26 paychecks per year (every two weeks). Biweekly paychecks are slightly smaller, but you get two extra paychecks annually. Total annual income is identical. Biweekly creates two “extra paycheck months” which some people use for irregular expenses or savings boosts.

What If I Claim Zero Allowances?

Claiming zero allowances maximizes tax withholding per paycheck. Your net pay is lower, but you’ll likely get a big refund at tax time. Claiming more allowances (1, 2, or more) reduces withholding and increases your take-home now, but you might owe taxes in April. Most people claim 1 or 2 to balance current cash flow with avoiding a big tax bill.

California vs. Other States

California’s tax burden ranks among the highest in the nation. Here’s how a $100,000 salary compares:

State	State Tax Rate	Annual State Tax	Net After All Taxes
California	~9.3%	~$7,200	~$69,000
Texas	0%	$0	~$76,000
Florida	0%	$0	~$76,000
New York	~6.5%	~$5,000	~$71,000
Washington	0%	$0	~$76,000

That $7,000 annual difference compounds. Over a 10-year career, California’s state tax costs you $70,000+ compared to living in Texas or Florida on the same salary. High earners see even bigger gaps. Someone making $300,000 in California pays roughly $30,000-35,000 more in state tax annually compared to zero-tax states.

How to Maximize Your California Take-Home Pay

Max Pre-Tax Deductions

Every dollar you put into a 401(k), traditional IRA, HSA, or FSA reduces your taxable income. If you’re in the 9.3% California bracket and 22% federal bracket, each $1,000 contributed saves you roughly $313 in taxes ($220 federal + $93 state). Max out your 401(k) ($23,500 in 2025 for under-50s), HSA ($4,300 single, $8,550 family), and FSA ($3,300) to keep more money.

Adjust Withholding Smartly

If you’re getting $5,000+ refunds every year, you’re giving the government an interest-free loan. Increase your allowances to keep more money per paycheck and invest the difference. Conversely, if you owe $2,000+ at tax time, reduce allowances to avoid penalties and surprise bills.

Consider Relocation for Major Income Jumps

If you get a huge raise or promotion that pushes you into California’s 13.3% top bracket, run the math on moving to a no-tax state. Remote work makes this feasible for many tech and finance roles. Saving $20,000-50,000 annually in state taxes might justify the move, especially if you’re not tied to California for family or lifestyle reasons.

Frequently Asked Questions

Why Is My California Paycheck So Much Smaller Than Expected?

California’s combined tax burden (federal, state, FICA, SDI) can hit 35-45% for middle and high earners. If your gross is $5,000 biweekly, don’t be shocked if net is only $3,200-3,400. That’s normal in California. Always calculate net pay before committing to rent, car payments, or other fixed expenses.

Do I Pay California Tax If I Work Remotely for a CA Company?

No. You pay taxes where you physically work. If you live in Nevada and work remotely for a California company, you pay Nevada tax (zero). If you live in Oregon and work remotely for a California company, you pay Oregon tax. Your employer should withhold based on your state of residence, not theirs.

What’s the Difference Between W-4 and DE 4?

W-4 is the federal withholding form. DE 4 is California’s state withholding form. Both control how much tax gets withheld from your paycheck, but they operate independently. You can claim different allowances on each form. Most people keep them the same to avoid confusion.

How Accurate Is This Calculator?

Very accurate for standard situations using 2025 tax tables. Where it might differ: local city taxes (rare in California), union dues, garnishments, or unusual deductions. For precise numbers, check your actual paystub or your employer’s payroll system. Small differences (under $50 per paycheck) are normal due to rounding and withholding formula variations.

Should I Move Out of California to Save on Taxes?

Depends on your income and priorities. If you make $60,000, the tax savings from moving to Texas is roughly $4,000-5,000 per year. Not life-changing. If you make $200,000, the savings jumps to $15,000-20,000 per year. That’s real money. Factor in cost of living, job opportunities, and lifestyle preferences. Taxes aren’t everything, but they’re not nothing either.

When Do I Stop Paying SDI Each Year?

Once your year-to-date wages hit $145,600, SDI stops. The cap is $1,601.60 total per year. If you make exactly $145,600, you’ll hit the cap in your last paycheck of the year. If you make $200,000, you’ll hit it around late August or early September. Your paychecks get slightly bigger after that.