Not only does California have one of the highest minimum wage rates in the country, it also has nearly 50 different local minimum wage rates across the state. The state is also one of the few with a State Disability Insurance program for employees who can't work due to a non-work-related injury or illness.
When it comes to processing payroll, California-based organizations must handle the following taxes in addition to those required by the federal government:
- Personal Income (a.k.a. State Income Tax)
- State Unemployment Insurance (SUI)
- State Disability Insurance (SDI)
- Employment Training Tax (ETT)
- C Corporation Taxes
The below information was last updated June 16, 2023. It is not intended as legal or tax advice.
California Minimum Wage Rates
Wage Type |
California Rates |
Federal Rates |
Minimum Wage |
$15.50 |
$7.25 |
Tipped Minimum Wage |
$15.50 |
$2.13 |
Actual Tip Credit |
N/A |
$5.12 |
Wage Type |
California Rates |
Federal Rates |
Minimum Wage |
$15.50 |
$7.25 |
Tipped Minimum Wage |
$15.50 |
$2.13 |
Actual Tip Credit |
N/A |
$5.12 |
Local Minimum Wage Rates
In addition to the state-wide minimum wage rates above, some cities and counties have unique minimum wage rates too:
Location |
Wage Rate |
Alameda City |
$16.54 |
Belmont |
$16.75 |
Berkeley |
$18.07 |
Burlingame |
$16.47 |
Cupertino |
$17.20 |
Daly City |
$16.07 |
East Palo Alto |
$16.50 |
El Cerrito |
$17.35 |
Emeryville |
$18.67 |
Fremont |
$16.80 |
Foster City |
$16.50 |
Half Moon Bay |
$16.45 |
Hayward |
$15.50 (small employer) |
Long Beach |
$16.73 (hotel) |
Los Altos |
$17.20 |
Los Angeles |
$16.78 (city) |
Malibu |
$16.90 |
Menlo Park |
$16.20 |
Milpitas |
$17.20 |
Mountain View |
$18.15 |
Novato City |
$15.53 (small employer; 1-25 employees) |
Oakland |
$15.97 |
Palo Alto |
$17.25 |
Pasadena |
$16.93 |
Petaluma |
$17.06 |
Redwood City |
$17.00 |
Richmond |
$16.17 |
San Carlos |
$16.32 |
San Diego |
$16.30 |
San Francisco |
$18.07 |
San Jose |
$17.00 |
San Mateo |
$16.50 (county) |
Santa Clara |
$17.20 |
Santa Monica |
$16.90 |
Santa Rosa |
$17.06 |
Sonoma |
$16.00 (small employer) |
South San Francisco |
$16.70 |
Sunnyvale |
$17.95 |
West Hollywood |
$19.08 |
Location |
Wage Rate |
Alameda City |
$16.54 |
Belmont |
$16.75 |
Berkeley |
$18.07 |
Burlingame |
$16.47 |
Cupertino |
$17.20 |
Daly City |
$16.07 |
East Palo Alto |
$16.50 |
El Cerrito |
$17.35 |
Emeryville |
$18.67 |
Fremont |
$16.80 |
Foster City |
$16.50 |
Half Moon Bay |
$16.45 |
Hayward |
$15.50 (small employer) |
Long Beach |
$16.73 (hotel) |
Los Altos |
$17.20 |
Los Angeles |
$16.78 (city) |
Malibu |
$16.90 |
Menlo Park |
$16.20 |
Milpitas |
$17.20 |
Mountain View |
$18.15 |
Novato City |
$15.53 (small employer; 1-25 employees) |
Oakland |
$15.97 |
Palo Alto |
$17.25 |
Pasadena |
$16.93 |
Petaluma |
$17.06 |
Redwood City |
$17.00 |
Richmond |
$16.17 |
San Carlos |
$16.32 |
San Diego |
$16.30 |
San Francisco |
$18.07 |
San Jose |
$17.00 |
San Mateo |
$16.50 (county) |
Santa Clara |
$17.20 |
Santa Monica |
$16.90 |
Santa Rosa |
$17.06 |
Sonoma |
$16.00 (small employer) |
South San Francisco |
$16.70 |
Sunnyvale |
$17.95 |
West Hollywood |
$19.08 |
California State Income Tax (SIT) Rates
California SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax. In addition to the brackets below, there's an extra 1.1% tax applied to those earning $1 million dollars or more annually.
Filing Status |
Income |
2023 Income Tax Rate |
Single / Married (filed separately) | $0 - $10,099 | 1.1% of excess over $0 |
$10,099 - $23,942 | $111.09 + 2.2% of excess over $10,099 | |
$23,942 - $37,788 | $415.64 + 4.4% of excess over $23,942 | |
$37,788 - $52,455 | $1,024.86 + 6.6% of excess over $37,788 | |
$52,455 - $66,295 | $1,992.88 + 8.8% of excess over $52,455 | |
$66,295 - $338,639 | $3,210.80 + 10.23% of excess over $66,295 | |
$338,639 - $406,364 | $31,071.59 + 11.33% of excess over $338,639 | |
$406,364 - $677,275 | $38,744.83 + 12.43% of excess over $406,364 | |
$677,275 - $1,000,000 | $72,419.07 + 13.53% of excess over $677,275 | |
$1,000,000 or greater | $116,083.76 + 14.63% of excess over $1,000,000 | |
Married (filed jointly) | $0 - $20,198 | 1.1% of excess over $0 |
$20,198 - $47,884 | $222.18 + 2.2% of excess over $20,199 | |
$47,884 - $75,576 | $831.27 + 4.4% of excess over $47,884 | |
$75,576 - $104,910 | $2,049.72 + 6.6% of excess over $75,576 | |
$104,910 - $132,590 | $3,985.76 + 8.8% of excess over $104,910 | |
$132,590 - $677,278 | $6,421.60 + 10.23% of excess over $132,590 | |
$677,278 - $812,728 | $62,143.18 + 11.33% of excess over $677,278 | |
$812,728 - $1,000,000 | $77,489.67 + 12.43% of excess over $812,728 | |
$1,000,000 - $1,354,550 | $100,767.58 + 13.53% of excess over $1,000,000 | |
$1,354,550 or greater | $148,738.20 + 14.63% of excess over $1,354,550 | |
Head of Household | $0 - $20,212 | 1.1% of excess over $0 |
$20,212 - $47,887 | $222.23 + 2.2% of excess over $20,212 | |
$47,887 - $61,730 | $831.18 + 4.4% of excess over $47,887 | |
$61,730 - $76,397 | $1,440.24 + 6.6% of excess over $61,730 | |
$76,397 - $90,240 | $2,408.29 + 8.8% of excess over $76,397 | |
$90,240 - $460,547 | $3,626.47 + 10.23% of excess over $90,240 | |
$460,547 - $552,658 | $41,508.88 + 11.33% of excess over $460.547 | |
$552,658 - $921,095 | $51,945.06 + 12.43% of excess over $522,658 | |
$921,095 - $1,000,000 | $97,741.78 + 13.53% of excess over $921,095 | |
$1,000,000 or greater | $108,417.63 + 14.63% of excess over $1,000,000 |
Filing Status |
Income |
2023 Income Tax Rate |
Single / Married (filed separately) | $0 - $10,099 | 1.1% of excess over $0 |
$10,099 - $23,942 | $111.09 + 2.2% of excess over $10,099 | |
$23,942 - $37,788 | $415.64 + 4.4% of excess over $23,942 | |
$37,788 - $52,455 | $1,024.86 + 6.6% of excess over $37,788 | |
$52,455 - $66,295 | $1,992.88 + 8.8% of excess over $52,455 | |
$66,295 - $338,639 | $3,210.80 + 10.23% of excess over $66,295 | |
$338,639 - $406,364 | $31,071.59 + 11.33% of excess over $338,639 | |
$406,364 - $677,275 | $38,744.83 + 12.43% of excess over $406,364 | |
$677,275 - $1,000,000 | $72,419.07 + 13.53% of excess over $677,275 | |
$1,000,000 or greater | $116,083.76 + 14.63% of excess over $1,000,000 | |
Married (filed jointly) | $0 - $20,198 | 1.1% of excess over $0 |
$20,198 - $47,884 | $222.18 + 2.2% of excess over $20,199 | |
$47,884 - $75,576 | $831.27 + 4.4% of excess over $47,884 | |
$75,576 - $104,910 | $2,049.72 + 6.6% of excess over $75,576 | |
$104,910 - $132,590 | $3,985.76 + 8.8% of excess over $104,910 | |
$132,590 - $677,278 | $6,421.60 + 10.23% of excess over $132,590 | |
$677,278 - $812,728 | $62,143.18 + 11.33% of excess over $677,278 | |
$812,728 - $1,000,000 | $77,489.67 + 12.43% of excess over $812,728 | |
$1,000,000 - $1,354,550 | $100,767.58 + 13.53% of excess over $1,000,000 | |
$1,354,550 or greater | $148,738.20 + 14.63% of excess over $1,354,550 | |
Head of Household | $0 - $20,212 | 1.1% of excess over $0 |
$20,212 - $47,887 | $222.23 + 2.2% of excess over $20,212 | |
$47,887 - $61,730 | $831.18 + 4.4% of excess over $47,887 | |
$61,730 - $76,397 | $1,440.24 + 6.6% of excess over $61,730 | |
$76,397 - $90,240 | $2,408.29 + 8.8% of excess over $76,397 | |
$90,240 - $460,547 | $3,626.47 + 10.23% of excess over $90,240 | |
$460,547 - $552,658 | $41,508.88 + 11.33% of excess over $460.547 | |
$552,658 - $921,095 | $51,945.06 + 12.43% of excess over $522,658 | |
$921,095 - $1,000,000 | $97,741.78 + 13.53% of excess over $921,095 | |
$1,000,000 or greater | $108,417.63 + 14.63% of excess over $1,000,000 |
Additional California SIT Details |
|
Supplemental Withholding Computation |
Flat rate of 6.6% or 10.23% for stock options/bonuses |
Valid Filing Statuses |
|
Exemptions (rates) |
|
Exemptions (individuals) |
|
Form W-4 |
Form DE-4 (for employees hired on or after January 1, 2020) |
Reconciliation Frequency |
Quarterly |
Additional California SIT Details |
|
Supplemental Withholding Computation |
Flat rate of 6.6% or 10.23% for stock options/bonuses |
Valid Filing Statuses |
|
Exemptions (rates) |
|
Exemptions (individuals) |
|
Form W-4 |
Form DE-4 (for employees hired on or after January 1, 2020) |
Reconciliation Frequency |
Quarterly |
California State Unemployment Insurance (SUI) Rates
SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.
California SUI Tax Details |
|
Taxable Wage Base |
$7,000 |
Employee Subject to Tax |
No |
Rates for Experienced Employers |
1.5% – 6.2% (Schedule F+) |
Rates for New Employers |
3.4% |
Effective Period |
Calendar Year |
Voluntary Contributions Allowed |
Yes; last working day in March (not permitted though when Schedule E, F, or the emergency solvency surcharge are in effect). |
California SUI Tax Details |
|
Taxable Wage Base |
$7,000 |
Employee Subject to Tax |
No |
Rates for Experienced Employers |
1.5% – 6.2% (Schedule F+) |
Rates for New Employers |
3.4% |
Effective Period |
Calendar Year |
Voluntary Contributions Allowed |
Yes; last working day in March (not permitted though when Schedule E, F, or the emergency solvency surcharge are in effect). |
California State Disability Insurance (SDI) Rates
SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. While employers don't contribute to these deductions, they are required to collect and remit said deductions to the state on each employee’s behalf.
California SDI Details | |
Maximum Taxable Earnings |
$153,164 |
Employee Deduction Rate |
0.9% |
Maximum Employee Deduction Amount |
$1,378.48 |
Employer Contribution |
No |
California SDI Details | |
Maximum Taxable Earnings |
$153,164 |
Employee Deduction Rate |
0.9% |
Maximum Employee Deduction Amount |
$1,378.48 |
Employer Contribution |
No |
Employers can also opt to carry their own insurance (a.k.a. voluntary plans or VDI). If an employer chooses a voluntary plan, they’re required to pay a VDI assessment of 0.126%.
Miscellaneous California Tax Information
Reciprocal Agreement(s)
Reciprocal agreements are when workers only pay taxes in the state where they live, not the state where they work. California doesn’t currently have any reciprocal agreements, but residents in the following states are allowed a tax credit towards their SITs for taxes paid to their home state:
- Arizona
- Guam
- Indiana
- Oregon
- Virginia
Paid Sick Leave (PSL)
The state of California doesn’t require employers to collect PSL taxes but does have a program providing such leave to eligible employees:
California PSL Details |
|
Covered Employees |
Employees who have worked at least 30 days for the employer. |
Covered Employers |
Any employer that has at least one employee who works more than 30 days in a year in the state of California. |
Accrual Method(s) |
1 hour per 30 hours worked; either accrued at a fractional rate per timed work or frontloaded at the start of a 12-month period. |
Annual Accrual Maximum |
48 hours |
Carryover Maximum |
Limited to accrual maximum |
Probationary Period |
Yes; 90 calendar days |
Frontloading Allowed |
Yes |
Record Retention |
3 years |
FAQ |
California PSL Details |
|
Covered Employees |
Employees who have worked at least 30 days for the employer. |
Covered Employers |
Any employer that has at least one employee who works more than 30 days in a year in the state of California. |
Accrual Method(s) |
1 hour per 30 hours worked; either accrued at a fractional rate per timed work or frontloaded at the start of a 12-month period. |
Annual Accrual Maximum |
48 hours |
Carryover Maximum |
Limited to accrual maximum |
Probationary Period |
Yes; 90 calendar days |
Frontloading Allowed |
Yes |
Record Retention |
3 years |
FAQ |
Paid Family Leave (PFL) Taxes
While there are no additional deductions to fund it, the state does have a paid family leave program that allows eligible employees to receive partial-wage-replacement benefits either all at once or split over a 12-month period. The program provides 60%-70% of an employee’s past salary, but employers may allow employees to use other forms of paid time off (sick time, vacation time, etc.) to supplement and receive 100% of their pay.
Employment Training Tax (ETT) Rates
To assist with the workforce development programs, employees within California also pay an Employment Training Tax of 0.1% on wages up to $7,000. Essentially, employees pay a maximum of $7 a year for this tax.
C Corporation Taxes
C corporations in California also pay an 8.84% corporate income tax if they receive income in the state and are incorporated, registered to do business in, and actually doing business in California. This tax doesn't apply to S corporations, but some shareholders may have to pay personal income tax on their share of an S corporation’s income.
California Employer Registration
The California Employment Development Department can help with your state-based employer registration, including best practices, account numbers, and unemployment information.
Registration Details |
Employment Development Department |
Phone |
(888) 745-3886 |
Online Registration |
https://www.edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm |
Registration Instructions |
|
Employer Self-Service Login |
Registration Details |
Employment Development Department |
Phone |
(888) 745-3886 |
Online Registration |
https://www.edd.ca.gov/Payroll_Taxes/e-Services_for_Business.htm |
Registration Instructions |
|
Employer Self-Service Login |
Additional California Payroll Tax Resources
- Employment Development Department
- Department of Tax and Fee Administration
- State Board of Equalization
- Franchise Tax Board
This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, Tax Attorney, or Advisor.

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