California has four State payroll taxes which are administered by the Employment Development Department (EDD). They are Unemployment Insurance (UI) and Employment Training Tax (ETT), which are employer contributions, and State Disability Insurance (SDI) and Personal Income Tax (PIT), which are withheld from employees’ wages.
Wages are generally subject to all four payroll taxes. However, some types of employment are not subject to payroll taxes and/or PIT withholding. For more information, please refer to the California Employer’s Guide (DE 44).
Tax rate used in calculating California state tax for year 2016
State Abbreviation:
CA
State Tax Withholding State Code:
06
Acceptable Exemption Form:
DE-4 or W-4
Basis For Withholding:
State or Federal Exemptions
Acceptable Exemption Data:
S, M, H / Number of Regular Allowances / Number of Allowances
TSP Deferred:
Yes
Special Coding:
Determine the Total Number Of Allowances Claimed field as follows:
First Position - Enter the employee's marital status indicated on the allowance certificate. Enter M (married), S (single), or H (head of household).
Second and Third Positions - Enter the total number of regular allowances claimed in Item 1 of the DE-4. If less than 10, precede with a zero. If no exemptions are claimed, enter 00.
Determine the Additional Exemptions Claimed field as follows:
First and Second Positions - Enter the number of allowances claimed in Item 2 of the DE-4. If less than 10, precede with a zero. If no allowances are claimed, enter 00.
Additional Information:
If the employee is using a W-4 in lieu of the California state DE-4, the information for the Additional Exemptions Claimed field should be notated on the W-4.
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Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in Step 1.
Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages times >26< to obtain the gross annual wages.
Determine if the employee's gross annual wages are less than or equal to the amount shown in the Low Income Exemption Table below. If so, no income tax is to be withheld.
Low Income Exemption Table
Single
Married
Head of Household
Exemptions
Annual Wages
$ > 13,419
0 or 11
$ 13,419
$ 26,838
2 or more1
26,838
<
1 Number of regular allowances claimed on DE-4 or W-4
Determine the additional withholding allowance for itemized deductions (AWAID) by applying the following guideline and subtract this amount from the gross annual wages.
AWAID = $1,000 x Number of Itemized Allowances Claimed for Itemized Deductions on DE-4 or W-4
Subtract the standard deduction shown in the following table from the result of step 6 to determine the taxable income.
Standard Deduction Table
Single
Married
Head of Household
Exemptions
Annual Wages
$ >4,044
0 or 11
$ 4,044
$ 8,088
2 or more1
8,088
<
1 Number of regular allowances claimed on DE-4 or W-4
Apply the taxable income computed in step 7 to the following table to determine the annual California income tax withholding.
Tax Withholding Table
Single
If the Amount of
Taxable Income Is:
The Amount of California
Tax Withholding Should Be:
Over:
But Not
Over:
Of Excess
Over:
$ 0
$ >7,850
$ 0.00
plus
1.100%
$ 0
7,850
18,610
86.35
plus
2.200%
7,850
18,610
29,372
323.07
plus
4.400%
18,610
29,372
40,773
796.60
plus
6.600%
29,372
40,773
51,530
1,549.07
plus
8.800%
40,773
51,530<
263,222
2,495.69
plus
10.230%
51,530
263,222
315,866
24,151.78
plus
11.330%
263,222
315,866
526,443
30,116.35
plus
12.430%
315,866
526,443
1,000,000
56,291.07
plus
13.530%
526,443
1,000,000
and over
120,363.33
plus
14.630%
1,000,000
Married
If the Amount of
Taxable Income Is:
The Amount of California
Tax Withholding Should Be:
Over:
But Not
Over:
Of Excess
Over:
$ 0
$ 15,700
$ 0.00
plus
1.1%
$ 0
15,700
37,220
172.70
plus
2.200%
15,700
37,220
58,744
646.14
plus
4.400%
37,220
58,744
81,546
1,593.20
plus
6.600%
58,744
81,546
103,060
3,098.13
plus
8.800%
81,546
103,060
526,444
4,991.36
plus
10.230%
103,060
526,444
631,732
48,303.54
plus
11.330%
526,444
631,732
1,000,000
60,232.67
plus
12.430%
631,732
1,000,000
1,052,886
106,008.38
plus
13.530%
1,000,000
1,052,886
and over
113,163.86
plus
14.630%
1,052,886
Head of Household
If the Amount of
Taxable Income Is:
The Amount of California
Tax Withholding Should Be:
Over:
But Not
Over:
Of Excess
Over:
$ 0
$ 15,710
$ 0.00
plus
1.100%
$ 0
15,710
37,221
172.81
plus
2.200%
15,710
37,221
47,982
646.05
plus
4.400%
37,221
47,982
59,383
1,119.53
plus
6.600%
47,982
59,383
70,142
1,872.00
plus
8.800%
59,383
70,142
357,981
2,818.79
plus
10.230%
70,142
357,981
429,578
32,264.72
plus
11.330%
357,981
429,578
715,962
40,376.66
plus
12.430%
429,578
715,962
1,000,000
75,974.19
plus
13.530%
715,962
1,000,000
and over
114,404.53
plus
14.630%
1,000,000
Determine the tax credit by applying the following guideline and subtract this amount from the result of step 8.
Tax Credit = >$119.90< x Number of Regular Allowances Claimed on DE-4 or W-4
Divide the annual California income tax withholding by >26< to obtain the biweekly California income tax withholding.
How to Calculate 2016 California State Income Tax by Using State Income Tax Table
1. Find your income exemptions
2. Find your pretax deductions, including 401K, flexible account contributions ...
3. Find your gross income
4. Check the 2016 California state tax rate and the rules to calculate state income tax
5. Calculate your state income tax step by step
6. If you want to simplify payroll tax calculations, you can download
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How to Calculate California State Income Tax Withholdings Automatically
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