Tax rate used in calculating California state tax for year 2023
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.
|
Withholding Formula ><(California Effective 2023)<
- 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 |
|
|
$ > 17,252
|
0 or 11
|
$ 17,252
|
$ 34,503
|
|
|
2 or more1
|
34,503
< |
|
|
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 |
|
|
$ >5,202
|
0 or 11
|
$ 5,202
|
$ 10,404
|
|
|
2 or more1
|
10,404
<
|
|
|
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
|
$ >10,099
|
$ 0.00
|
plus
|
1.100%
|
$ 0
|
|
10,099
|
23,942
|
111.09 |
plus
|
2.200%
|
10,099
|
|
23,942
|
37,788
|
415.64
|
plus
|
4.400%
|
23,942
|
|
37,788
|
52,455
|
1024.86
|
plus
|
6.600%
|
37,788
|
|
52,455
|
66,295
|
1,992.88
|
plus
|
8.800%
|
52,455
|
|
66,295<
|
338,639
|
3,210.80
|
plus
|
10.230%
|
66,295
|
|
338,639
|
406,364
|
31,071.59
|
plus
|
11.330%
|
338,639
|
|
406,364
|
677,275
|
38,744.83
|
plus
|
12.430%
|
406,364
|
|
677,275
|
1,000,000
|
72,419.07
|
plus
|
13.530%
|
677,275
|
|
1,000,000
|
and over
|
116,083.76
|
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
|
$ 20,198
|
$ 0.00
|
plus
|
1.1%
|
$ 0
|
|
20,198 |
47,884
|
222.18
|
plus
|
2.200%
|
20,198
|
|
47,884
|
75,576
|
831.27
|
plus
|
4.400%
|
47,884
|
|
75,576
|
104,910
|
2,049.72
|
plus
|
6.600%
|
75,576
|
|
104,910
|
132,590
|
3,985.76
|
plus
|
8.800%
|
104,910
|
|
132,590
|
677,278
|
6,421.60
|
plus
|
10.230%
|
132,590
|
|
677,278
|
812,728
|
62,143.18
|
plus
|
11.330%
|
677,278
|
|
812,728
|
1,000,000
|
77,489.67
|
plus
|
12.430%
|
812,728
|
|
1,000,000
|
1,354,550
|
100,767.58
|
plus
|
13.530%
|
1,000,000
|
|
1,354,550
|
and over
|
148,738.20
|
plus
|
14.630%
|
1,354,550
|
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
|
$ 20,212
|
$ 0.00
|
plus
|
1.100%
|
$ 0
|
|
20,212
|
47,887
|
222.33
|
plus
|
2.200%
|
20,212
|
|
>47,887
|
61,730
|
831.18
|
plus
|
4.400%
|
47,887
|
|
61,730
|
76,397
|
1,440.27
|
plus
|
6.600%
|
61,730
|
|
76,397
|
90,240
|
2,408.29
|
plus
|
8.800%
|
76,397
|
|
90,240
|
460,547
|
3,626.47
|
plus
|
10.230%
|
90,240
|
|
460,547
|
552,658
|
41,508.88
|
plus
|
11.330%
|
460,547
|
|
552,658
|
921,095
|
51,945.06
|
plus
|
12.430%
|
552,658
|
|
921,095
|
1,000,000
|
97,741.78
|
plus
|
13.530%
|
921,095
|
|
1,000,000
|
and over
|
108,417.63
|
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 = >$154.00< 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 2023 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 2023 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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ezPaycheck: Small Business Payroll Solution
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More Information for CA Customers
1. How to handle CA SDI
2. How ezPaycheck works for California companies
3. How to handle PTO?
4. California State Tax Tables
5. How to Calculate California Income Tax Withholdings
6. What is the cost of using ezPaycheck payroll software
7. How to handle CA ETT
8. ezPaycheck 30-day Free demo download link
9. ezPaycheck feature list
10. How to file ACA forms 1095 & 1094 to California State - Minimum Essential Coverage Information Reporting(MEC IR)
|
How to Calculate California State Income Tax Withholdings Automatically
How to Create After the Fact Paychecks and Generate the Paystubs