Overview of California State Income Tax Rates and Brackets for 2025

Key Takeaways

• California tax rates may change in 2025, with top rate possibly rising to 14.63% for incomes over $1 million.
• Immigrants, newcomers, and high earners must review tax withholding and stay updated on Assembly Bill 1219.
• 2025 tax changes could impact pending immigration applications, eligibility, and payroll withholding for California residents.

California’s state income tax rates and tax brackets are a major concern for immigrants, residents, and anyone considering moving to or working in the state. With 2025 bringing potential changes to how much people pay in taxes, it’s important to understand what’s happening, who will be affected, and what steps you should take next. This update explains the latest information about California’s tax brackets, what’s changing, who needs to pay attention, and what these changes mean for pending applications, especially for immigrants and newcomers.

Summary of What’s Changing

As of July 9, 2025, California’s state income tax rates and tax brackets are still based on a progressive system. This means that as your income goes up, the percentage of tax you pay also increases. California is known for having some of the highest state income tax rates in the United States 🇺🇸, with rates that have ranged from 1% for the lowest earners up to 13.3% for the highest earners. There is also an extra 1% tax for those earning over $1 million.

The most important update for 2025 is that the exact tax brackets and rates may change, but as of now, the final details are not fully available. Lawmakers are discussing new bills and possible changes, but nothing is set in stone yet. The main bill to watch is Assembly Bill 1219, which could change how much people pay in taxes for the years 2025 through 2029. There is also talk about raising the top tax rate to 14.63% for those earning more than $1 million in wage income, but this has not been confirmed.

Who Is Affected by These Changes?

These possible changes to California’s state income tax rates and tax brackets will affect a wide range of people:

• Immigrants and new residents: Anyone moving to California, especially those on work visas or with pending immigration applications, needs to know how much they will owe in state taxes.
• Current residents: People already living and working in California will see changes in how much is taken out of their paychecks.
• High earners: Those making over $1 million could face the highest increases if the top tax bracket goes up.
• Employers: Businesses must adjust payroll systems to make sure the correct amount of tax is withheld from employees’ paychecks.
• Families and students: Changes in tax brackets can affect eligibility for certain credits and deductions, which can impact family budgets and student finances.

Effective Dates

The proposed changes would start with the 2025 tax year, which means they would affect income earned from January 1, 2025, onward. If you file taxes in California for 2025, you will need to use the new rates and brackets once they are finalized.

Required Actions for Taxpayers and Immigrants

Since the exact 2025 tax brackets and rates are not yet confirmed, here are the steps you should take:

1. Stay Informed: Check official sources like the California Franchise Tax Board (FTB) for the latest updates on state income tax rates and tax brackets.
2. Review Your Paychecks: If you are employed, look at your pay stubs to see how much state tax is being withheld. If you notice big changes, ask your employer or payroll department for details.
3. Update Your Withholding: If you expect your income to change, or if you are moving to California, update your tax withholding using the correct forms. This helps avoid surprises at tax time.
4. Consult a Tax Professional: If you have a complex immigration status or are unsure how the changes affect you, talk to a tax advisor who understands both immigration and California tax law.
5. Prepare for Possible Increases: If you are a high earner or expect to be in a higher tax bracket, plan for the possibility of paying more in state income taxes in 2025.

California’s Progressive Tax System Explained

California’s tax system is called “progressive” because the more you earn, the higher the percentage of your income you pay in taxes. This is different from a “flat tax,” where everyone pays the same percentage no matter how much they make.

• Nine Tax Brackets: California usually has nine different tax brackets. Each bracket covers a range of income, and each has its own tax rate.
• Top Rate: The highest rate has been 13.3% for incomes over $1 million, plus an extra 1% for mental health services, making it 14.3% for the very highest earners.
• Possible Increase: There is talk of raising the top rate to 14.63% for wage income over $1 million, but this has not been confirmed.

Why These Changes Matter for Immigrants

For immigrants, understanding California’s state income tax rates and tax brackets is especially important. Many immigrants come to California for work or to join family, and their visa status can affect how they are taxed. For example:

• Nonresidents vs. Residents: If you are a nonresident (for example, on a temporary visa), you may only pay tax on income earned in California. If you become a resident, you pay tax on all income, no matter where it comes from.
• Pending Applications: If you are waiting for a green card or another change in status, your tax situation could change once your status is approved.
• Tax Treaties: Some countries have tax treaties with the United States 🇺🇸 that can affect how much tax you pay in California. It’s important to check if your home country has such an agreement.

Assembly Bill 1219: What You Need to Know

Assembly Bill 1219 is the main bill that could change California’s state income tax rates and tax brackets for 2025 through 2029. While the exact details are not public yet, here’s what we know:

• Purpose: The bill aims to adjust tax rates and brackets to reflect changes in the economy and state needs.
• Possible Effects: The bill could raise or lower rates for certain income levels, change the number of brackets, or adjust how much income is taxed at each rate.
• Status: As of July 2025, the bill is still being discussed. No final decision has been made.

Payroll Tax Expansion: What’s Being Discussed

There is also discussion about expanding the payroll tax for high earners. This would mean:

• Higher Top Bracket: The top tax rate could go from 13.3% to 14.63% for wage income over $1 million.
• Who Pays: Only those earning more than $1 million in wages would be affected.
• Why: The extra money would help fund state programs, including health and social services.

As reported by VisaVerge.com, these possible changes are part of a larger effort to make sure the state has enough money to pay for important services while also being fair to taxpayers.

How to Check Your Tax Bracket

Until the new brackets are announced, you can use the current system as a guide. Here’s how to check your tax bracket:

1. Find Your Taxable Income: This is your total income minus deductions and exemptions.
2. Look Up the Bracket: Use the latest chart from the California Franchise Tax Board to see which bracket your income falls into.
3. Calculate Your Tax: Multiply the income in each bracket by the rate for that bracket, then add them up.

For the most up-to-date information, always check the California Franchise Tax Board’s website.

Implications for Pending Immigration Applications

If you have a pending immigration application, such as a green card or work visa, changes in California’s state income tax rates and tax brackets could affect you in several ways:

• Proof of Income: Many immigration forms require proof of income and tax returns. Changes in tax rates could change your reported income or tax owed.
• Eligibility for Benefits: Some immigration programs look at your income to decide if you qualify. Higher taxes could lower your after-tax income, which might affect your eligibility.
• Filing Requirements: If your status changes during the year, you may need to file as both a resident and a nonresident. This can be complicated, so keep good records.

If you need to file any immigration forms, such as the I-485 (Application to Register Permanent Residence or Adjust Status), always use the official USCIS I-485 form and follow the latest instructions.

What Immigrants and Newcomers Should Do Now

• Keep Records: Save all pay stubs, tax returns, and immigration documents. You may need them for both tax and immigration purposes.
• Check With Employers: Make sure your employer has your correct immigration status and is withholding the right amount of state income tax.
• Plan for Changes: If you expect your income to go up or down, or if your immigration status will change, talk to a tax advisor about how this will affect your taxes.
• Watch for Updates: Laws can change quickly. Sign up for updates from the California Franchise Tax Board and the U.S. Citizenship and Immigration Services (USCIS).

Official Resources and Where to Get Help

For the most accurate and current information about California’s state income tax rates and tax brackets, use these official resources:

• California Franchise Tax Board (FTB): www.ftb.ca.gov
• California Employment Development Department (EDD): www.edd.ca.gov
• FTB Customer Service: (800) 852-5711
• EDD Taxpayer Assistance Center: (888) 745-3886

If you have questions about your immigration status and taxes, you can also contact:

• U.S. Citizenship and Immigration Services (USCIS): www.uscis.gov

Practical Examples

Let’s look at a few examples to see how these changes might affect different people:

Example 1: New Immigrant Worker
Maria moves to California on a work visa in January 2025. She earns $60,000 a year. She checks the FTB website and sees that her income puts her in the middle tax bracket. If the new law raises the rate for her bracket, she may owe a bit more in state taxes. She updates her withholding with her employer to avoid a big tax bill at the end of the year.

Example 2: High Earner
John is a tech executive earning $1.5 million a year. If the top bracket goes up to 14.63%, he will pay more in state income tax. He talks to his accountant to plan for the higher tax bill and makes sure his payroll department is using the new rates.

Example 3: Family with Pending Green Card
The Singh family is waiting for their green card approval. They file taxes as residents because they have lived in California all year. If the tax brackets change, their after-tax income could go down, which might affect their eligibility for certain benefits. They keep careful records and check for updates from both the FTB and USCIS.

Key Takeaways and Next Steps

• California’s state income tax rates and tax brackets for 2025 are likely to change, but final details are not yet available.
• Immigrants, high earners, and anyone with pending immigration applications should pay close attention to these changes.
• Check official sources like the California Franchise Tax Board for the latest information.
• Update your tax withholding and keep good records to avoid problems at tax time.
• Consult a tax professional if you have questions about how these changes affect your immigration status or tax bill.

Staying informed and prepared is the best way to handle changes in California’s tax system. By following these steps and using official resources, you can avoid surprises and make sure you meet all your tax and immigration requirements.

Learn Today

Assembly Bill 1219 → Proposed California law aiming to adjust income tax rates and brackets from 2025 to 2029.
Progressive Tax System → A tax structure where higher incomes are taxed at higher rates incrementally across brackets.
Tax Bracket → Income range subject to a specific tax rate within California’s progressive tax system.
Withholding → The portion of an employee’s paycheck withheld by the employer for state income taxes.
Pending Immigration Application → An ongoing process for legal status changes affecting tax filing and financial reporting.

This Article in a Nutshell

California may raise its 2025 income tax top rate to 14.63% for high earners. Immigrants and residents should monitor official updates, adjust withholdings, and consult tax professionals to prepare for potential impacts on income and immigration applications.
— By VisaVerge.com