Below is a quick reference table for California and Federal Income Taxes for 2024.

Note, the list of things not included, such as deductions, credits, deferred income, and specialty dividends, capital gains, or other income.

For personal or specific information, call your CPA or head to https://www.ftb.ca.gov/ or IRS.Gov.

(Keep in Mind, California hasn’t issued guidance for the 2024 tax brackets yet. The California numbers below represent 2023 brackets. We’ll update if and when new guidance is issued)

See the Federal and California Tax Brackets table below:

California Tax Changes Effective January 1, 2024

California funds the state’s disability insurance program through a payroll tax of 1.1 percent on wages up to $153,164 in 2023. In 2024, this wage ceiling will be lifted, subjecting all wage income to the payroll tax.

The payroll tax expansion increases the state's top income tax bracket from 13.3% to 14.4%.

California also levies a 1% mental health services tax on income exceeding $1 million.

The new total 14.4% tax rate applies to wage income over $1 million.

All decimals have been rounded up to the next dollar.

If you have questions on income tax deferral, tax minimization or the impact of taxes on your investment strategy, give our office a call today at 530-487-1777,

or Book an Appointment Online Today.

Further Reading on some of California’s Tax Disadvantages: