California Income Tax Withholding and Payroll Information

Compliance with state taxes are required for every employer. Learn about relevant rates and automation below.

December, 17th 2024

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Every state in the country has a unique paradigm for income tax and state unemployment insurance rates. Located below are relevant rates and complance information by state.

Employers must also adhere to federal income tax withholding rules as well. More information can be found here about federal rates .

Alternatively, employers can automatically calculate payroll witholding information by using ezPaycheck.

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California Tax Information

General Information
State Abbreviation	CA
State Tax Withholding State Code	06
Acceptable Exemption Form	DE-4 or W-4
Basis For Withholding	State Exemptions and 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.

How to Calculate California Taxes

Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (including dental, vision, and flexible spending accounts) from the amount computed in Step 1.
Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in Step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by 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. If so, no income tax is to be withheld.
Determine the additional withholding allowance for itemized deductions (AWAID) by applying the guideline (AWAID = $1,000 × Number of Itemized Allowances) and subtract this amount from the gross annual wages.
Subtract the standard deduction (based on the Standard Deduction Table) from the result of Step 6 to determine the taxable income.
Apply the taxable income computed in Step 7 to the appropriate Tax Withholding Table to determine the annual California income tax withholding.
Determine the tax credit (Tax Credit = $163.90 x Number of Regular Allowances) and subtract this amount from the result of Step 8.
Divide the annual California income tax withholding (after adjustments) by 26 to obtain the biweekly California income tax withholding.

Want to calculate in a easier way? Learn how to calculate California taxes via ezPaycheck below.

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Deductions, Allowances, and Exemptions

Low Income Excemption Table
Single	Married		Head of Household
	Zero or One Allowances	Two or More Allowances
$18,368	$18,368	$36,736	$36,736

Standard Deduction Table
Single	Married		Head of Household
	Zero or One Allowances	Two or More Allowances
$5,540	$5,540	$11,080	$11,080

For every allowance claimed above 10, multiply that amount by $163.90.

Annual Exemption Table for Allowances
Allowances	Annual Amount
0	$0
1	$163.90
2	$327.80
3	$491.70
4	$655.60
5	$819.50
6	$983.40
7	$1,147.30
8	$1,311.20
9	$1,475.10
10	$1,639.00

Tax Witholding Tables

Tax Withholding Table: Single, Dual Income Married, or Married with Multiple Employers
If Taxable Income Is		Tax Withholding
Over	But Not Over			Rate	Of Excess Over
$0	$10,756	$0	+	1.1%	$0
$10,756	$25,499	$118.32	+	2.2%	$10,756
$25,499	$40,245	$442.67	+	4.4%	$25,499
$40,245	$55,866	$1,091.49	+	6.6%	$40,245
$55,866	$70,606	$2,122.48	+	8.8%	$55,866
$70,606	$360,659	$3,419.60	+	10.23%	$70,606
$360,659	$432,787	$33,092.00	+	11.33%	$360,659
$432,787	$721,314	$41,264.12	+	12.43%	$432,787
$721,314	$1,000,000	$77,128.03	+	13.53%	$721,314
$1,000,000	and over	$114,834.25	+	14.63%	$1,000,000

Tax Withholding Table: Head of Household
If Taxable Income Is		Tax Withholding
Over	But Not Over			Rate	Of Excess Over
$0	$21,527	$0	+	1.1%	$0
$21,527	$51,000	$236.80	+	2.2%	$21,527
$51,000	$65,744	$885.21	+	4.4%	$51,000
$65,744	$81,364	$1,533.95	+	6.6%	$65,744
$81,364	$96,107	$2,564.87	+	8.8%	$81,364
$96,107	$490,493	$3,862.25	+	10.23%	$96,107
$490,493	$588,593	$44,207.94	+	11.33%	$490,493
$588,593	$980,987	$55,322.67	+	12.43%	$588,593
$980,987	$1,000,000	$104,097.24	+	13.53%	$980,987
$1,000,000	and over	$106,669.70	+	14.63%	$1,000,000

Tax Withholding Table: Married
If Taxable Income Is		Tax Withholding
Over	But Not Over			Rate	Of Excess Over
$0	$21,512	$0	+	1.1%	$0
$21,512	$50,998	$236.63	+	2.2%	$21,512
$50,998	$80,490	$885.32	+	4.4%	$50,998
$80,490	$111,732	$2,182.97	+	6.6%	$80,490
$111,732	$141,212	$4,244.94	+	8.8%	$111,732
$141,212	$721,318	$6,839.18	+	10.23%	$141,212
$721,318	$865,574	$66,184.02	+	11.33%	$721,318
$865,574	$1,000,000	$82,528.22	+	12.43%	$865,574
$1,000,000	$1,442,628	$99,237.37	+	13.53%	$1,000,000
$1,442,628	and over	$159,124.94	+	14.63%	$1,442,628

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