Sacramento Income Tax Calculator 2026: Estimate Your California State Tax
Whether you are a state employee working near the Capitol or a professional in Sacramento's booming healthcare and tech sectors, understanding your tax liability is essential. As the state capital, Sacramento is the heart of California’s fiscal policy, yet residents here follow the same progressive tax structure as the rest of the Golden State. Use our Sacramento Income Tax Calculator to estimate your 2026 tax bill (for the 2025 tax year) based on the most recent California Franchise Tax Board (FTB) schedules and federal tax laws.
2025-2026 California Tax Brackets for Sacramento Residents
California uses a progressive tax system where rates increase with your taxable income. For the 2025 tax year (filed in 2026), the brackets have been adjusted to reflect inflation.
Single or Married Filing Separately
| Tax Rate | Taxable Income Range |
|---|---|
| 1% | $0 – $11,079 |
| 2% | $11,079 – $26,264 |
| 4% | $26,264 – $41,452 |
| 6% | $41,452 – $57,542 |
| 8% | $57,542 – $72,724 |
| 9.3% | $72,724 – $371,479 |
| 10.3% | $371,479 – $445,771 |
| 11.3% | $445,771 – $742,953 |
| 12.3% | $742,953+ |
Married Filing Jointly or Head of Household
| Tax Rate | Taxable Income Range (Jointly) |
|---|---|
| 1% | $0 – $22,158 |
| 2% | $22,158 – $52,528 |
| 4% | $52,528 – $82,904 |
| 6% | $82,904 – $115,084 |
| 8% | $115,084 – $145,448 |
| 9.3% | $145,448 – $742,958 |
| 10.3% | $742,958 – $891,542 |
| 11.3% | $891,542 – $1,485,906 |
| 12.3% | $1,485,906+ |
Mental Health Services Act: Any taxable income over $1,000,000 is subject to an additional 1% surcharge, making the highest effective marginal rate 13.3%.
Why Sacramento’s Tax Profile is Unique
While Sacramento residents pay the same state income tax as those in Los Angeles or San Francisco, the local economic landscape offers unique tax considerations:
- Public Sector Retirement (CalPERS/CalSTRS): Many Sacramento residents are state employees. Contributions to CalPERS or CalSTRS are typically made on a pre-tax basis for federal and state income tax, which lowers your taxable income significantly. Our calculator allows you to input these pre-tax deductions for a more accurate net pay estimate.
- SDI Tax Changes: In 2026, the State Disability Insurance (SDI) withholding continues to have no wage limit. This 1.1%–1.3% tax applies to your entire earned income, which is a critical factor for high-earning professionals in the region.
- Standard Deduction (2025): For the 2025 tax year, the California standard deduction is $5,706 for individuals and $11,412 for joint filers.
Sacramento Cost of Living vs. Taxes
Sacramento is often viewed as a more affordable alternative to the Bay Area, but taxes still take a sizable bite out of your paycheck.
- Sales Tax: The total sales tax rate in the City of Sacramento is 8.75%. This is a combination of the state rate (7.25%) and local district taxes (1.50%).
- Property Taxes: Sacramento County property taxes generally hover around 1.2%, depending on your specific district and any Mello-Roos assessments.
- Renter’s Credit: With rising rents in Midtown and East Sacramento, don't forget the California Renter’s Credit (up to $120 for joint filers), provided your income falls below the FTB thresholds.
Pro-Tip: Tax Planning for Sacramento Residents
If you are moving to Sacramento from out of state or shifting from the private sector to a state job, your withholding will change.
- Adjust your DE-4: California uses its own withholding form (DE-4) separate from the federal W-4. Ensure this is updated to avoid a large tax bill in April.
- Vehicle License Fee (VLF): While not an income tax, California’s VLF is deductible on your federal Schedule A if you itemize.
Disclaimer
Disclaimer: This tool provides an estimate for educational purposes and does not constitute professional tax advice. For specific filings, consult a certified tax professional or visit the official California FTB website.