For more on how deductions change taxable wages, see our
pre-tax vs. post-tax deductions guide.
California Paycheck Tax Calculator: How California Withholding Works
This section also works as a California tax calculator for paycheck withholding. A California paycheck calculator has to handle two
state deductions that most states don't combine. California PIT is
an income tax withheld with the EDD's Method B formula and your DE 4.
SDI is a flat 1.3% payroll deduction that funds disability and Paid
Family Leave benefits. They're separate lines on your pay stub, often labeled CA PIT or
CA SIT and CASDI (see our
pay stub abbreviations list),
and they're figured on slightly different wages.
Method A vs. Method B
The EDD gives employers two ways to withhold California PIT. Method A
uses wage bracket tables for each pay period. Method B, the exact
calculation method, annualizes pay and runs it through the rate
tables, and it's what most payroll software and this calculator use.
The two methods can differ by a few cents per paycheck.
California SDI Rate 2026: 1.3% With No Wage Cap
Since January 1, 2024, California has had no taxable wage limit for
SDI, so high earners pay 1.3% on every dollar in 2026. SDI pays for
State Disability Insurance and Paid Family Leave benefits, and
employers don't pay a matching share. Traditional 401(k)
contributions still count as SDI wages even though they lower income
tax wages. For a closer look, see our
CASDI guide.
Federal Withholding for California Paychecks
Federal withholding uses your Form W-4 and the 2026 IRS Publication
15-T tables. The calculator supports filing status, Step 2(c), Step 3
credits and Step 4(a), 4(b) and 4(c). If you claim the new overtime
or tips deductions, our
W-4 Step 4(b) worksheet guide
shows how to enter them, and our
2026 federal tax withholding guide
covers the rest. As of this update, California doesn't follow the
federal no tax on overtime and tips
deductions for state tax, so overtime and tips are still fully taxed
for California PIT.
Bonuses and Supplemental Wages
When a bonus or stock option income is paid separately from regular
wages, employers can withhold California PIT at a flat 10.23%. Other
supplemental wages paid separately, such as
commissions,
PTO payouts and
severance,
use 6.6%. SDI at 1.3% applies too. Add the usual 22% federal
supplemental rate and FICA, and a large share of a bonus is withheld;
our bonus withholding guide
explains why.
HSA Contributions in California
California doesn't recognize Health Savings Accounts. HSA payroll
contributions (see our HSA on a pay stub guide) are tax-free for federal income tax and FICA, but
they're still taxable wages for California PIT. Enter eligible payroll HSA contributions in the dedicated HSA field,
not in the general Section 125 field. The calculator excludes qualifying
HSA amounts from federal withholding and FICA but includes them in
California PIT and SDI taxable wages. Do not enter a deduction twice.
No Local Income Tax
No California city or county taxes wages. Los Angeles, San Francisco,
San Diego, San Jose and every other city add nothing to your paycheck
deductions, though many of them set a higher minimum wage.
Working Across State Lines
California residents owe California tax on all of their income,
wherever it's earned, and claim a credit for tax paid to another
state. Nonresidents owe California tax on wages for work done in
California. California has no reciprocal agreements, so people who
live in Nevada
and work in California still have California PIT withheld, while
commuters from Oregon
or Arizona
may deal with two states' withholding.
Employer Payroll Costs in California
Some California payroll taxes never show up as a deduction.
Employers pay Unemployment Insurance
on the first $7,000 of each employee's wages (3.4% for new employers
in 2026), the 0.1% Employment Training Tax on the same $7,000, their
share of Social Security and Medicare, and federal unemployment tax.
When year-end comes, our
W-2 form generator
can use the same wage and withholding totals. Many California
employers also list SDI in Box 14 of the W-2; our
W-2 boxes guide
explains each box, and our
Box 1 wages guide
shows how pre-tax deductions change it.
Why Your Actual California Paycheck May Differ
This calculator is a close estimate, not your employer's payroll
run. Your DE 4 on file, Method A vs. Method B rounding, HSA
contributions, benefit elections, year-to-date wages and a 27th
biweekly payday in some years can all move the result a little.
Three-paycheck months
change monthly cash flow but not the tax on each check. For a full
checklist, see why your paycheck is lower than expected.
Official 2026 California Payroll Sources
Payroll facts on this page are checked against the
EDD 2026 Method B withholding schedules,
the EDD 2026 contribution rates,
Form DE 4,
the California Labor Commissioner
and IRS Publication 15-T for 2026.
Reviewed October 31, 2026.
