IRS SALT Deduction Information
IRS guidance on the $10,000 state and local tax (SALT) deduction cap, which limits how much California income tax you can deduct on your federal return.
Source: Internal Revenue ServicewebpageApplies to: 2025
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California Income Tax
California has a progressive income tax with 9 brackets ranging from 1% to 12.3%, plus a 1% Behavioral Health Services Tax on income over $1 million, bringing the top rate to 13.3% — the highest in the nation. Most Californians pay an effective rate between 4% and 7%.
Income Tax Brackets
The U.S. federal income tax uses seven progressive brackets with rates from 10% to 37%. Each bracket rate only applies to the income within that range — not to your entire income.
Last reviewed: 2027-01-15 • State: CA