Retirement planning for California.
Graduated (1% – 13.3%). Start with your situation
Start with your situationCalifornia at a glance (2026)
- Top combined rate
- 50.3%
- State tax model
- Graduated
- Standard deduction
- $16,100
- RMD start age
- 73
California income tax rates (2026)
| Rate | Taxable income (single) |
|---|---|
| 1% | up to $10,412 |
| 2% | $10,412 – $24,684 |
| 4% | $24,684 – $38,959 |
| 6% | $38,959 – $54,081 |
| 8% | $54,081 – $68,350 |
| 9.3% | $68,350 – $349,137 |
| 10.3% | $349,137 – $418,961 |
| 11.3% | $418,961 – $698,271 |
| 12.3% | $698,271 – $1,000,000 |
| 13.3% | over $1,000,000 |
State rates apply on top of federal rates (10-37%). Married filing jointly thresholds are typically 2x single.
California retirement planning insights
- California has the highest state income tax in the US at 13.3%. Combined with federal, the top rate reaches 50.3%. Roth conversion strategies are expensive here but can pay off if you plan to retire in a lower-tax state
- California taxes Social Security differently than federal: Social Security benefits are not taxed at the state level, which helps retirees who rely heavily on SS income
- The $349,137 bracket boundary is key for Roth conversion planning. Below that, the state rate is 9.3%. Above it, you're paying 10.3-13.3% state on top of federal
- California's capital gains are taxed as ordinary income (no preferential rate). Liquidating appreciated assets in California is more expensive than almost any other state
Frequently asked questions
Should I do Roth conversions in California?
It depends on whether you plan to stay. If you'll retire in California, Roth conversions lock in today's rates and avoid higher rates later if your income grows. If you plan to move to a no-tax state (NV, TX, FL), you might defer conversions until after the move. cinder.fi models both scenarios side-by-side.
Is California a bad state to retire in for taxes?
California's top rate is the highest in the US, but it doesn't tax Social Security benefits at the state level. For retirees whose income is primarily Social Security + modest withdrawals, California can be surprisingly reasonable. For those with large 401(k)/IRA withdrawals, the math favors lower-tax states.
Does California tax capital gains differently?
Yes: California taxes capital gains as ordinary income with no preferential rate. Long-term capital gains that would be taxed at 0-20% federally face the full state bracket rate (up to 13.3%). This makes tax-loss harvesting and asset location especially important for California residents.
Related guides
Other states
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