California payroll taxes

California state income tax (PIT): Progressive; employers withhold using CA DE 4/IRS W-4 data and EDD withholding schedules.
SDI (State Disability Insurance): Employee-paid payroll tax that funds Disability Insurance and Paid Family Leave; rate set annually by EDD.
FICA (federal): Social Security and Medicare; see “California Federal Insurance Contributions Act (FICA).”
UI (Unemployment Insurance): Employer-paid on first $7,000 of wages per employee; rate depends on experience (new employer starts at a standard rate).
ETT (Employment Training Tax): Small employer-paid assessment that supports training; generally applies with UI.
Local income taxes: None on wages; some jurisdictions levy employer payroll or business taxes (do not reduce employee net pay).
Pre-tax deductions: Traditional 401(k), HSA/FSA, Section 125 premiums can reduce taxable wages (where eligible).
Post-tax deductions: Roth 401(k), garnishments, after-tax benefits reduce net pay after taxes.

How Your California Paycheck Works

Start with gross pay (salary per pay period or hourly rate × hours; include overtime/double-time when due).
Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to find taxable wages.
Calculate FICA (Social Security to the annual wage base; Medicare on all wages; Additional Medicare for high earners).
Calculate federal withholding using IRS methods and your Form W-4 elections.
Calculate California PIT using EDD tables and your DE 4/W-4 details.
Withhold SDI at the EDD-published rate (subject to the year’s SDI wage rules).
Employer separately pays UI and ETT (these do not reduce your net pay).
Subtract post-tax deductions to reach net pay.

California unemployment insurance (UI) — 10-year employer snapshot

Employees do not pay California UI; employers do. The taxable wage base has long been $7,000. New-employer rates and experienced ranges are shown below (confirm your annual rate notice for exact percentages).

Year	Taxable Wage Base	Employee Pays UI?	New Employer UI Rate	Experienced UI Rate Range (approx.)	ETT (typical)
2016	$7,000	No	3.4%	~1.5%–6.2%	0.1%
2017	$7,000	No	3.4%	~1.5%–6.2%	0.1%
2018	$7,000	No	3.4%	~1.5%–6.2%	0.1%
2019	$7,000	No	3.4%	~1.5%–6.2%	0.1%
2020	$7,000	No	3.4%	~1.5%–6.2%	0.1%
2021	$7,000	No	3.4%	~1.5%–6.2%	0.1%
2022	$7,000	No	3.4%	~1.5%–6.2%	0.1%
2023	$7,000	No	3.4%	~1.5%–6.2%	0.1%
2024	$7,000	No	3.4%	~1.5%–6.2%	0.1%
2025	$7,000	No	3.4%	~1.5%–6.2%	0.1%

California SDI (employee) — 10-year reference

California withholds SDI from employees each year at an EDD-set rate. The wage cap was removed starting in 2024 (benefit expansion law). Always verify the current EDD circular for the exact rate and wage rules.

Year	Employee SDI Rate	SDI Wage Base	Max SDI Withholding
2016	varies (EDD)	annual cap	varies
2017	varies (EDD)	annual cap	varies
2018	varies (EDD)	annual cap	varies
2019	varies (EDD)	annual cap	varies
2020	varies (EDD)	annual cap	varies
2021	varies (EDD)	annual cap	varies
2022	varies (EDD)	annual cap	varies
2023	varies (EDD)	$153,164 cap	varies
2024	varies (EDD)	No cap (uncapped)	n/a
2025	varies (EDD)	No cap (uncapped)	n/a

California salary threshold

For most “white-collar” exemptions, California requires a salary of at least 2× the statewide minimum wage for full-time work (40 hours/week), plus duties tests. With the 2025 statewide minimum wage of $16.00/hour, the minimum exempt salary is $66,560/year (2 × 16 × 40 × 52). Separate, higher thresholds apply to certain occupations (e.g., computer software professionals) and some local ordinances may raise minimum wages (but the state formula uses the statewide rate).

Median Household Income — California (10 years, current dollars)

Illustrative values showing the trend over the last decade. Verify with the latest ACS/FED releases for precise figures.

Year	Median Household Income
2015	~$65,000
2016	~$67,000
2017	~$71,000
2018	~$75,000
2019	~$78,000
2020	~$78,500
2021	~$84,000
2022	~$84,500
2023	~$90,000
2024	~$92,000

California Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer up to the federal wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: extra 0.9% employee-only on wages above $200,000 (employer still 1.45%).

Number of cities that have local income taxes

California does not impose local personal income taxes on wages. A few jurisdictions (e.g., San Francisco) levy employer payroll or gross-receipts taxes that affect the employer, not the employee’s net paycheck. Therefore, California paychecks generally include federal taxes, California PIT, SDI, and benefit deductions—not city wage taxes.

Local income tax table (employee wage tax)

City/County	Local income/occupational tax rate	Applies to Employees?
Statewide	None	No local wage tax on employees

California Wage and Hour Laws: Overtime, Pay Frequency

Minimum wage (statewide): $16.00/hour in 2025 (some cities/counties are higher).
Daily overtime: 1.5× after 8 hours/day; 2× after 12 hours/day; special 7th-day rules (1.5× first 8 hours; 2× after 8).
Weekly overtime: 1.5× after 40 hours/week (in addition to daily rules).
Pay frequency: Most wages must be paid at least twice each month on regular paydays; specific rules for different occupations apply.
Meal/rest breaks: Strict state rules; premium pay may be due if missed.

Additional California forms

DE 4 — California Employee’s Withholding Allowance Certificate (state withholding elections).
DE 9 / DE 9C — Quarterly Contribution Return and Report of Wages (employer UI/ETT/SDI/PIT reporting).
DE 34 — Report of New Employee(s).
EDD withholding schedules & circulars — annual PIT and SDI guidance.
Required posters — California wage, hour, and leave notices.

FAQs — California Salary Paycheck Calculator

How do I use a California Salary Paycheck Calculator to estimate my net pay?

Enter gross pay and pay frequency, your W-4/DE 4 details, and any pre-tax/post-tax deductions. The calculator applies FICA, federal withholding, California PIT, SDI, and excludes any city wage taxes. Employer UI/ETT does not reduce your take-home.

Why is SDI coming out of my California paycheck?

California funds Disability Insurance and Paid Family Leave through an employee payroll tax called SDI. The rate is set annually by EDD and is separate from federal FICA taxes.

Do I pay California Unemployment Insurance from my wages?

No. California UI is paid by employers on the first $7,000 of each employee’s wages. Employees do not have a UI line on their pay stub, but they do have SDI withholding.

What salary makes me exempt from overtime in California?

For most white-collar exemptions, you must earn at least 2× the statewide minimum wage for full-time work (40 hours/week) and satisfy duties tests. In 2025 that equals $66,560/year.

Does any California city take a local income or occupational tax from my paycheck?

No. California doesn’t have local personal income taxes on wages. Some cities impose employer payroll/business taxes, which don’t reduce employees’ net pay.

How are overtime and double-time calculated in California?

Most non-exempt employees earn 1.5× after 8 hours/day or 40 hours/week and 2× after 12 hours/day. On the 7th consecutive day in a workweek, special daily overtime/double-time rules apply.

How often must I be paid in California?

Generally at least twice monthly, on established paydays. Some industries have different rules, but California requires prompt, regular payment and strict final-pay deadlines.

What’s deducted from bonuses or commissions on a California paycheck?

Federal withholding (using IRS supplemental methods), FICA, California PIT, and SDI. Employer UI/ETT continues until the UI wage base is reached (employer cost only).

Why is my coworker’s net pay different even though our salaries match?

Differences in W-4/DE 4 elections, pre-tax benefits, Roth vs. traditional contributions, SDI rate changes, supplemental pay methods, and garnishments can produce different take-home pay at the same gross salary.

Where can I verify current California payroll rates?

Check EDD’s annual withholding schedules (PIT), SDI circulars, and UI/ETT rate notices, plus IRS publications for federal withholding and FICA limits.

California Salary Paycheck Calculator