CA minimum wage: $17.00/hr (2026)
📊 California Income Tax Brackets 2026
California has the highest state income tax in the U.S., with 9 progressive tax brackets ranging from 1% to 13.3%. The SDI (State Disability Insurance) adds an additional 0.9% on all wages.
| Taxable Income (Single) | CA Tax Rate | Tax on Bracket |
|---|---|---|
| $0 – $10,412 | 1.0% | up to $104 |
| $10,413 – $24,684 | 2.0% | up to $285 |
| $24,685 – $38,959 | 4.0% | up to $571 |
| $38,960 – $54,081 | 6.0% | up to $907 |
| $54,082 – $68,350 | 8.0% | up to $1,141 |
| $68,351 – $349,137 | 9.3% | up to $26,139 |
| $349,138 – $418,961 | 10.3% | up to $7,192 |
| $418,962 – $698,274 | 11.3% | up to $31,560 |
| $698,275+ | 13.3% | highest bracket |
Source: California Franchise Tax Board (FTB) · 2026 tax year. Standard deduction: $5,202 (single). SDI: 0.9% on all wages. No cap on SDI in 2024+.
💵 Common Hourly Wages — California After-Tax
Here's what various hourly wages look like after California taxes (single filer, standard deduction, SDI included):
| Hourly Rate | Annual Gross | CA State Tax | Take-Home/yr | Take-Home/mo |
|---|---|---|---|---|
| $17/hr | $35,360 | ~$618 | ~$27,800 | ~$2,317 |
| $20/hr | $41,600 | ~$935 | ~$32,400 | ~$2,700 |
| $22/hr | $45,760 | ~$1,155 | ~$35,400 | ~$2,950 |
| $25/hr | $52,000 | ~$1,614 | ~$39,500 | ~$3,292 |
| $30/hr | $62,400 | ~$2,450 | ~$46,700 | ~$3,892 |
| $35/hr | $72,800 | ~$3,350 | ~$53,700 | ~$4,475 |
| $40/hr | $83,200 | ~$4,260 | ~$60,600 | ~$5,050 |
| $50/hr | $104,000 | ~$6,450 | ~$74,400 | ~$6,200 |
🏙️ California City Minimum Wages 2026
Many California cities set their own minimum wage above the state minimum of $17/hr. Here are the key city-specific rates:
📖 California Tax Guide for Workers 2026
California State Income Tax
California uses a progressive income tax system with 9 brackets (1%–13.3%). Unlike federal taxes, California has a relatively low standard deduction of $5,202 for single filers in 2026, meaning more of your income is subject to state tax compared to federal tax.
State Disability Insurance (SDI)
California workers pay SDI at 0.9% of gross wages with no wage ceiling since January 2024. SDI provides short-term disability benefits and Paid Family Leave (PFL) — you may be eligible to receive up to 60–70% of your wages if you need to take time off for a qualifying disability or family reason.
California vs. No-Tax States
Compared to Texas or Florida (0% state tax), a California worker earning $52,000/year pays approximately $2,100–$2,500 more in state taxes annually. However, California offers benefits including disability insurance, paid family leave, strong worker protections, and higher minimum wages.
California Overtime Law
California has stricter overtime rules than federal law: overtime (1.5× rate) applies after 8 hours in a single day (not just 40 hours/week). Double time (2× rate) applies after 12 hours in a day or after 8 hours on the 7th consecutive day worked. This can significantly increase take-home for hourly workers who work long days.
California COLA & Living Wage
California has the highest cost of living of any U.S. state. The MIT Living Wage Calculator estimates a single adult in Los Angeles needs ~$30–35/hr to meet basic needs without government assistance. In San Francisco, the equivalent is closer to $38–42/hr. A $17/hr minimum wage, while the highest state minimum in the U.S., still falls short of a true living wage in California's major cities.
❓ Frequently Asked Questions
The California state minimum wage is $17.00/hour in 2026, the highest state minimum in the U.S. Some cities are higher: San Francisco ($18.67), San Jose ($17.95), Oakland ($17.37). Fast food chain workers have a separate minimum of $20/hr under AB 1228. Healthcare workers have a phased minimum of $21–23/hr under SB 525.
At $25/hour ($52,000/year), a single filer in California pays approximately $1,614 in state income tax plus $468 in SDI (0.9%). Combined with federal income tax (~$4,202) and FICA ($3,978), total deductions are approximately $10,262, leaving a take-home of approximately $39,500–$41,738/year depending on deductions and credits.
$25/hour ($52,000/year, ~$3,292/month after tax) is sufficient to live in lower-cost California cities like Sacramento, Fresno, or Riverside, particularly with roommates. It is very tight in San Francisco or Los Angeles, where average rent for a 1-bedroom is $2,500–$3,500+. Most financial advisors recommend budgeting 30% of take-home for housing (~$988/month) — which is very difficult in coastal CA metros at $25/hr.
California SDI (State Disability Insurance) is a mandatory payroll deduction of 0.9% on all wages with no income cap (since January 2024). It funds two programs: (1) State Disability Insurance — pays 60–70% of wages for up to 52 weeks if you can't work due to illness, injury, or pregnancy, and (2) Paid Family Leave (PFL) — pays 60–70% of wages for up to 8 weeks to bond with a new child or care for a seriously ill family member.
California has the strongest overtime laws in the U.S.: 1.5× your regular rate for hours over 8 in a single day, all hours over 40 in a week, and the first 8 hours on the 7th consecutive workday. 2× your regular rate (double time) for hours over 12 in a single day and all hours on the 7th consecutive workday. These rules apply to most non-exempt employees regardless of industry.