Calculating your take-home pay in the Golden State is notoriously complex due to a multi-tiered state income tax system and unique payroll deductions like the State Disability Insurance (SDI). Whether you are starting a new job in Los Angeles or negotiating a salary in San Francisco, our California Pay Calculator provides an accurate estimate of your net income.
Key Deductions in California
When you look at your paystub, your gross salary is reduced by several mandatory withholdings:
Federal Income Tax: Progressive tax collected by the IRS based on your income bracket and filing status.
FICA (Social Security & Medicare): A combined 7.65% (6.2% for Social Security and 1.45% for Medicare) that funds national insurance programs.
California State Income Tax: California has one of the highest top marginal tax rates in the U.S., ranging from 1% to 13.3% for the highest earners.
CA SDI: The State Disability Insurance is a mandatory deduction (currently 1.1% for 2024) that provides benefits to workers who lose wages due to non-work-related disabilities.
Example Calculation
If you earn an annual salary of $100,000 and file as Single in California, your breakdown might look like this:
Category
Annual Amount
Gross Income
$100,000
Federal Income Tax
-$14,260
CA State Tax
-$5,950
FICA + SDI
-$8,750
Net Take-Home Pay
~$71,040
How to Maximize Your Take-Home Pay
To increase the amount that actually hits your bank account, consider these tax-advantaged strategies:
401(k) Contributions: Contributions are made pre-tax, reducing your taxable income for both Federal and CA State taxes.
HSA/FSA: Health Savings Accounts allow you to pay for medical expenses with tax-free dollars.
Commuter Benefits: Many California employers offer pre-tax transit passes which can save you hundreds annually.
Frequently Asked Questions
Is CA SDI mandatory? Yes, almost all California employees are required to pay into the SDI program unless covered by a state-approved voluntary plan.
How often are CA tax brackets updated? The Franchise Tax Board (FTB) adjusts tax brackets annually to account for inflation based on the California Consumer Price Index.