California payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in California, each with its effective date and the agency page it comes from.
Unemployment insurance
Checked on October 5, 2026.
Income tax withholding
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Employment Development Department (EDD) (opens in a new tab) | EDD, Payroll Taxes Resources (opens in a new tab) | |
| Withholding rates | 1.1% to 14.63% | EDD, California Withholding Schedules for 2026, Method B (PDF) (opens in a new tab) | |
| Supplemental wages | 6.6% optional flat rate10.23%: Bonuses and stock options | EDD, California Employer's Guide 2026 (DE 44) (PDF) (opens in a new tab) | |
| Reciprocity | None | EDD, California Employer's Guide 2026 (DE 44), Wages Paid to Nonresidents of California (PDF) (opens in a new tab) | |
| Employee's withholding form | Form DE 4 | EDD, California Employer's Guide 2026 (DE 44) (PDF) (opens in a new tab) | |
| Local income taxes | No | EDD, Payroll Taxes Resources (opens in a new tab) |
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $16.90 | California Department of Finance, Minimum Wage History, California and United States (XLSX) (opens in a new tab) | |
| Next change | $17.40 | Office of the Governor, Governor Newsom announces California will raise statewide minimum wage (July 31, 2026) (opens in a new tab) | |
| Rises with inflation | Yes | California Labor Code §1182.12(c) (opens in a new tab) | |
| Local rates | Not confirmed |
Checked on October 5, 2026. Not confirmed: no official source settled the figure on the check date, so none is shown.
Paid family and medical leave
State Disability Insurance (Disability Insurance and Paid Family Leave)
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Employment Development Department (EDD) (opens in a new tab) | EDD, State Disability Insurance (opens in a new tab) | |
| Status | Contributing | EDD, State Disability Insurance (opens in a new tab) | |
| Total rate | 1.3% | EDD, SDI Contribution Rates and Benefit Amounts (opens in a new tab) | |
| Employee share | 1.3% | EDD, California Employer's Guide 2026 (DE 44) (PDF) (opens in a new tab) | |
| Employer share | None | EDD, California Employer's Guide 2026 (DE 44) (PDF) (opens in a new tab) | |
| Wage cap | No cap | EDD, SDI Contribution Rates and Benefit Amounts (opens in a new tab) | |
| Small employers | None | EDD, California Employer's Guide 2026 (DE 44) (PDF) (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From the first employee | California Labor Code §3700; Insurance Code §11775 (opens in a new tab) | |
| State fund | State Compensation Insurance Fund (opens in a new tab) | California Labor Code §3700; Insurance Code §11775 (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in California
Employer taxes and contributions on one employee's pay in California, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
- Employer taxes and contributions per check
- $271.16
- First check of the year
- Cost per check
- $2,578.85
- Pay included, first check
- Cost per year
- $64,877.00
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,484.23, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| California unemployment | 3.4% on the first $7,0003.4% for two to three years, plus the separate 0.1% Employment Training Tax (3.5% in all on the first $7,000)Assessments in the rows below | $78.46None after check 4 | $238.00 | EDD, California Employer's Guide 2026 (DE 44 Rev. 52 (4-26)) (PDF) (opens in a new tab); EDD, 2026 California Tax Rates and Wage Limits (opens in a new tab) |
| Employment Training Tax (separate employer tax, same $7,000 base) | 0.1% on the first $7,000 | $2.31None after check 4 | $7.00 | EDD, California Employer's Guide 2026 (DE 44 Rev. 52 (4-26)) (PDF) (opens in a new tab); EDD, 2026 California Tax Rates and Wage Limits (opens in a new tab) |
| Employer taxes and contributions | $271.16 | $4,877.00 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,578.85 | $64,877.00 |
Checked on October 5, 2026. Paid by employees alone, so left out: State Disability Insurance (Disability Insurance and Paid Family Leave). Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
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Payroll taxes calculated, deposited and filed in every state
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Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- EDD, Payroll Taxes Resources (opens in a new tab)
- EDD, 2026 California Tax Rates and Wage Limits (opens in a new tab)
- California Unemployment Insurance Code §930 (opens in a new tab)
- EDD, California Employer's Guide 2026 (DE 44 Rev. 52 (4-26)) (PDF) (opens in a new tab)
- US DOL OUI, FUTA Credit Reductions; Potential 2026 FUTA Credit Reductions (XLSX, Jan. 15, 2026) (opens in a new tab)
- EDD, California Withholding Schedules for 2026, Method B (PDF) (opens in a new tab)
- California Department of Finance, Minimum Wage History, California and United States (XLSX) (opens in a new tab)
- Office of the Governor, Governor Newsom announces California will raise statewide minimum wage (July 31, 2026) (opens in a new tab)
- California Labor Code §1182.12 (opens in a new tab)
- EDD, State Disability Insurance (opens in a new tab)
- EDD, SDI Contribution Rates and Benefit Amounts (opens in a new tab)
- California Labor Code §3700; Insurance Code §11775 (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.