December, 17th 2025
Each state has unique income tax withholding rules. Below are California's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates .
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| State Abbreviation | CA |
|---|---|
| State Tax Withholding State Code | 06 |
| Acceptable Exemption Form | DE-4 or W-4 |
| Basis For Withholding | State Exemptions and Federal Exemptions |
| Acceptable Exemption Data | S, M, H / Number of Regular Allowances / Number of Allowances |
| TSP Deferred | Yes |
| Special Coding | Determine the Total Number Of Allowances Claimed field as follows: First Position - Enter the employee's marital status indicated on the allowance certificate. Enter M (married), S (single), or H (head of household). Second and Third Positions - Enter the total number of regular allowances claimed in Item 1 of the DE-4. If less than 10, precede with a zero. If no exemptions are claimed, enter 00. |
| Additional Information | If the employee is using a W-4 in lieu of the California state DE-4, the information for the Additional Exemptions Claimed field should be notated on the W-4. |
| Official State Tax Website | Visit Official Website |
California uses allowances similar to the pre-2020 federal system. An employee may claim 1 allowance for themselves (if no one else claims them) and 1 for a spouse if the spouse does not claim their own allowance. 1 allowance is allowed for each dependent. California also grants 1 allowance each if the taxpayer or spouse is blind (and not claimed elsewhere). Note: CA's DE-4 does not include an age-based allowance, but it provides a separate worksheet for estimated deductions and an adjustment for multiple earners.
| Component | Allowances | Notes |
|---|---|---|
| Yourself | 1 allowance | If no one else claims you |
| Spouse | 1 allowance | If spouse does not claim their own allowance |
| Each Dependent | 1 allowance | Per dependent |
| Blindness (Employee) | 1 allowance | If employee is blind and not claimed elsewhere |
| Blindness (Spouse) | 1 allowance | If spouse is blind and not claimed elsewhere |
Total Allowances = Yourself + Spouse + Dependents + Blindness Allowances
California does not provide an age-based allowance. Married couples with two incomes should check the 'Single or Married (with two or more incomes)' box on the DE-4 to avoid under-withholding.
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (including dental, vision, and flexible spending accounts) from the amount computed in Step 1.
Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in Step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by 26 to obtain the gross annual wages.
Determine if the employee's gross annual wages are less than or equal to the amount shown in the Low Income Exemption Table. If so, no income tax is to be withheld.
Determine the additional withholding allowance for itemized deductions (AWAID) by applying the guideline (AWAID = $1,000 × Number of Itemized Allowances) and subtract this amount from the gross annual wages.
Subtract the standard deduction (based on the Standard Deduction Table) from the result of Step 6 to determine the taxable income.
Apply the taxable income computed in Step 7 to the appropriate Tax Withholding Table to determine the annual California income tax withholding.
Determine the tax credit (Tax Credit = $163.90 x Number of Regular Allowances) and subtract this amount from the result of Step 8.
Divide the annual California income tax withholding (after adjustments) by 26 to obtain the biweekly California income tax withholding.
Want to calculate in an easier way? Learn how to calculate California taxes via ezPaycheck below.
Learn More| Annualized Wages | Deduction |
|---|---|
| Over $0 | $5,706 |
Standard deduction for Single: $5,706 (0 or 1 allowances) or $11,412 (2 or more allowances)
| Annualized Wages | Deduction |
|---|---|
| Over $0 | $5,540 |
Standard deduction for Married: $5,706 (0 or 1 allowances) or $11,412 (2 or more allowances)
| Annualized Wages | Deduction |
|---|---|
| Over $0 | $11,142 |
| Withholding Allowance | Annual Amount |
|---|---|
| Lump sum withholding allowance | $0 |
| For each allowance | $168 |
| 2 | $337 |
| 3 | $505 |
| 4 | $673 |
| 5 | $842 |
| 6 | $1,010 |
| 7 | $1,178 |
| 8 | $1,346 |
| 9 | $1,515 |
| 10 | $1,683 |
Formula: $168.30 per allowance (for allowances above 10, multiply by $168.30)
For Single: $18,896 (0 or 1 allowances) or $37,791 (2 or more allowances). For Married: $18,896 (0 or 1 allowances) or $37,791 (2 or more allowances). For Head of Household: $37,791.
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $11,079 | $0 | + | 1.10% | $0 |
| $11,079 | $26,264 | $122 | + | 2.20% | $11,079 |
| $26,264 | $41,452 | $456 | + | 4.40% | $26,264 |
| $41,452 | $57,542 | $1,124 | + | 6.60% | $41,452 |
| $57,542 | $72,724 | $2,186 | + | 8.80% | $57,542 |
| $72,724 | $371,479 | $3,522 | + | 10.23% | $72,724 |
| $371,479 | $445,771 | $34,085 | + | 11.33% | $371,479 |
| $445,771 | $742,953 | $42,502 | + | 12.43% | $445,771 |
| $742,953 | $1,000,000 | $79,442 | + | 13.53% | $742,953 |
| $1,000,000 | and over | $114,220 | + | 14.63% | $1,000,000 |
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $22,158 | $0 | + | 1.10% | $0 |
| $22,158 | $52,528 | $244 | + | 2.20% | $22,158 |
| $52,528 | $82,904 | $912 | + | 4.40% | $52,528 |
| $82,904 | $115,084 | $2,248 | + | 6.60% | $82,904 |
| $115,084 | $145,448 | $4,372 | + | 8.80% | $115,084 |
| $145,448 | $742,958 | $7,044 | + | 10.23% | $145,448 |
| $742,958 | $891,542 | $68,170 | + | 11.33% | $742,958 |
| $891,542 | $1,000,000 | $85,004 | + | 12.43% | $891,542 |
| $1,000,000 | $1,485,906 | $98,486 | + | 13.53% | $1,000,000 |
| $1,485,906 | and over | $164,229 | + | 14.63% | $1,485,906 |
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $22,173 | $0 | + | 1.10% | $0 |
| $22,173 | $52,530 | $244 | + | 2.20% | $22,173 |
| $52,530 | $67,716 | $912 | + | 4.40% | $52,530 |
| $67,716 | $83,805 | $1,580 | + | 6.60% | $67,716 |
| $83,805 | $98,990 | $2,642 | + | 8.80% | $83,805 |
| $98,990 | $505,208 | $3,978 | + | 10.23% | $98,990 |
| $505,208 | $606,251 | $45,534 | + | 11.33% | $505,208 |
| $606,251 | $1,000,000 | $56,982 | + | 12.43% | $606,251 |
| $1,000,000 | $1,010,417 | $105,925 | + | 13.53% | $1,000,000 |
| $1,010,417 | and over | $107,335 | + | 14.63% | $1,010,417 |
ezPaycheck simplifies payroll calculations, including California's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date California state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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