California Paycheck Calculator

Use California Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.

What Are Payroll Taxes?

Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.

The Social Security tax is paid by the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.

Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.

Each state also has specific state payroll taxes that must be withheld and paid.

California Payroll Taxes

California assesses state income taxes as well as unemployment insurance taxes and an unemployment training tax. Employers must withhold state income taxes from employee paychecks. Employers pay unemployment insurance and training taxes directly to the respective agencies.

State Income Tax

California’s state income taxes consist of personal income tax (PIT) and state disability insurance tax (SDI).

Personal Income Tax (PIT)

In California, personal income taxes (PIT) fund education, healthcare, and public services. Rates are based on the information provided by your employees on the required employee withholding form, as well as the associated withholding schedule.  There is no maximum tax or taxable wage base. 

Local municipalities may also assess their own income taxes. For example, in San Francisco, there is an additional income tax rate of 1.4%.

State Disability Insurance Tax (SDI)

California’s state disability insurance tax (SDI) funds temporary benefits programs related to pregnancy, non-work injuries, and paid family leave. For 2022, the SDI withholding rate is 1.1% and the maximum withholding for each employee is $1,601.60. The taxable wage limit per employee is $145,600.

Unemployment Insurance (UI)

State unemployment insurance (UI) tax rates in California range from 1.5% to 6.2% for established businesses. The rate for new businesses is 3.4%. 

The current UI taxable wage base in California is $7,000.

Employment Training Tax (ETT)

Employment training taxes (ETT) are used to fund employee training programs in targeted industries throughout the state. The current ETT rate is 0.1% and the taxable wage limit is $7,000 per employee, per calendar year.

Paying Payroll Taxes

Just as you need an EIN to pay federal payroll taxes, in California, you’ll need to register for state withholdings with the Employment Development Department, where you can also find more information about California payroll taxes. 

Using a Payroll Tax Service

Processing payroll can be terribly complex, which is why many business owners turn to a payroll service provider. It’s often less expensive than creating a new staff position for managing payroll. Payroll and payroll taxes come with countless laws and restrictions, and a payroll service can ensure your business remains in compliance at the federal, state, and local levels.

You’ll just send over your digital timesheets and relevant information and the service provider will take care of the calculations, payments and taxes, freeing you up to focus on growing your business. 

We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!