How to Calculate California Income Tax Withholdings

Paying employees accurately and on time is very important for any business. Usually you can calculate California payroll income tax withholdings in the following ways.

Calculate California it manually by using state tax table

Use payroll software to simplify the tax calculations

Hire an accountant

Option 1: Calculate CA State Income Tax Manually

If you like to calcualte state tax withholdings manually, you can refer to the California tax tables and step by step guide here.

How to Create After the Fact Paychecks and Generate the Paystubs by Entering Taxes Manually

Option 2: Payroll Software Saves CA Businesses Time and Money

EzPaycheck Payroll software is a good choice for many small business employers. Once you set up company and employee, ezPaycheck will calculate California income tax for you automatically. Here are the quick guide.

From $169

ezPaycheck Makes Payroll An Easy, In-House Task!

(For Windows and Mac)

Trusted by Thousands for Two decades.
Calculate Federal & State Taxes, Print Paychecks, Print W2, W3, 941, 943 and 940.
User-friendly, Easy-to-use
No monthly fee.

Act now: automate your small business payroll today.

Try it free for 30 days with no obligation. No credit card required.

With ezPaycheck Payroll Software, You Can Print Your Paychecks in Minutes After Your Set up Company and Employees.

Step 1: Download and install ezPaycheck payroll software

We have ezPaycheck 2008 to current available from our site. Please choose the right version to download. For example: If you need to calculate Year 2026 income tax, please download ezPaycheck 2026.

Step 2: Set up Company

Select the rigth Pay Period Start ezPaycheck application, click the left menu "Company Settings" then click the sub menu "Company" to open the company setup screen. Please make sure you select the correct Pay Period there.

(Click image to enlarge)

Set up company tax information option

You can click the left menu "Company Settings" then click the sub menu "Tax Information" to open the company tax setup screen

Step 3: Set up Employee Profile

Enter employee address correctly

Start ezPaycheck application, click the left menu "Employees" then click the sub menu "Add Employee" to add employee profile. EzPaycheck calculates state tax based on employee address.

Enter the tax option for this employees

Step 4: Add and Print a check

You can click the "ADD" button above check list on the main screen to add a new check. Or you can click the ezPaycheck payroll software left menu "Checks" then click the sub menu "New Check" to open New Check screen.
new payroll check

Print paychecks

You can select one or multiple paychecks from list and click the Print button to print paychecks together.

More Information for CA Customers

1. How to handle CA SDI

2. How ezPaycheck works for California companies

3. How to handle PTO?

4. California State Tax Tables

5. How to Calculate California Income Tax Withholdings

6. What is the cost of using ezPaycheck payroll software

7. How to handle CA ETT

8. ezPaycheck 30-day Free demo download link

9. ezPaycheck feature list

10. How to file ACA forms 1095 & 1094 to California State - Minimum Essential Coverage Information Reporting(MEC IR)