The Three Main Taxes
When you look at your paycheck in California, you'll see three primary deductions:
1. Federal Income Tax
This is paid to the IRS. Rates range from 10% to 37% as your income increases. Most middle-income earners in California fall into the 22% or 24% federal brackets.
2. California State Income Tax
California has a progressive tax system with rates from 1% to 13.3%. It is one of the highest in the nation.
3. FICA (Payroll Taxes)
This covers Social Security (6.2%) and Medicare (1.45%). These are flat rates applied to your gross pay (Social Security stops after $176,100 in 2025).