If you're wondering how much tax you'll have to pay in California, it's important to note that the state has a progressive income tax system, which means that the more you earn, the higher percentage of tax you'll have to pay.
For the 2021 tax year, the tax rates range from 1% to 13.3%, depending on your income. Here are the tax brackets for single filers:
- 1% on the first $8,544 of taxable income
- 2% on taxable income between $8,545 and $20,255
- 4% on taxable income between $20,256 and $31,969
- 6% on taxable income between $31,970 and $44,377
- 8% on taxable income between $44,378 and $56,085
- 9.3% on taxable income between $56,086 and $286,492
- 10.3% on taxable income between $286,493 and $343,788
- 11.3% on taxable income between $343,789 and $572,980
- 12.3% on taxable income between $572,981 and $1,000,000
- 13.3% on taxable income over $1,000,000
In addition to the income tax, California also has a state sales tax rate of 7.25%, although local areas can add up to 2.5% on top of that. There is also a 0.25% tax for CalWORKs and a 1% tax for mental health services.
It's important to keep in mind that there are various deductions and credits that can lower your overall tax liability in California, so it's a good idea to consult with a tax professional or use tax software to ensure you're taking advantage of all available benefits.
Overall, the amount of tax you'll pay in California will depend on your income, deductions, and credits, so it's best to calculate your specific tax liability based on your individual financial situation.