California Taxes 2025
Complete tax guide and OBBBA calculator for CA residents
On This Page
California Tax Overview 2025
State Income Tax
1% - 13.3%
Graduated rate structure
Combined Sales Tax
8.85%
State 7.25% + Local 1.60%
Avg Property Tax
0.74%
Property taxes are limited by Proposition 13
💼 California Income Tax 2025
California has the highest state income tax in the nation, with rates from 1% to 13.3%.
When filing your California state tax return, your income tax liability depends on your taxable income and filing status. California uses a graduated income tax structure.
California Income Tax Quick Facts
🛒 California Sales Tax 2025
California's combined average sales tax rate is 8.85%, which includes both state and local components. The state sales tax rate is 7.25%, while local jurisdictions add an average of 1.60%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 California Property Tax 2025
California's average effective property tax rate is 0.74%. Property taxes are limited by Proposition 13.
Property taxes in California are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $1,850 | $154 |
| $400,000 | $2,960 | $247 |
| $600,000 | $4,440 | $370 |
OBBBA Tax Benefits for California Residents
California residents benefit greatly from the increased $40,000 SALT cap, as high state taxes previously exceeded the $10,000 limit.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that California residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for CA Residents:
Calculate Your California Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a California resident.
Calculate My SavingsHow California Compares
| Tax Type | CA Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 1% - 13.3% | 5.1% | Varies |
| Sales Tax | 8.85% | 7.12% | Above Avg |
| Property Tax | 0.74% | 1.10% | Below Avg |
Frequently Asked Questions
What is the income tax rate in California?
California has a graduated income tax with rates of 1% - 13.3%. California has the highest state income tax in the nation, with rates from 1% to 13.3%.
What is the sales tax in California?
The combined average sales tax rate in California is 8.85%. This includes the state rate of 7.25% plus an average local rate of 1.60%.
How do OBBBA deductions benefit California residents?
California residents benefit greatly from the increased $40,000 SALT cap, as high state taxes previously exceeded the $10,000 limit. California residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are California taxes due?
For tax year 2025, California state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.