California payroll taxes
Every tax withheld from a California paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: oui.doleta.gov, edd.ca.gov, edd.ca.gov, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 2.1% | $7,000 |
| California SUTA | — | 3.5% (new) | $7,000 |
| State Disability Insurance (incl. Paid Family Leave) | 1.3% | — | No limit |
| California income tax | 1%–12.3% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
The California SUTA wage base changes to $7,000 in 2027.
State unemployment insurance
California charges new employers 3.5% on the first $7,000 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 1.6% to 6.2%. New employer rate is 3.4% UI + 0.1% ETT for 3 years. The UI range is 1.5%-6.2%. CA is a FUTA credit reduction state (see _meta). Wage base fixed by statute.
Employment Training Tax (ETT) 0.1% on the first $7,000, included in the new and min rates. SDI 1.3% (2026) is employee-paid with no wage cap, but it is disability, not UI.
Register and file with the California unemployment tax agency.
Paid leave and disability programs
- State Disability Insurance (incl. Paid Family Leave): employees pay 1.3%. 1.3% of all wages in 2026; no taxable wage limit since 2024 (SB 951). EDD lists 1.4% for 2027, still no cap. Employee-paid only.
Income tax withholding
California has a graduated income tax with 9 brackets, from 1% up to 12.3% on taxable income over $742,953 for single filers.
Frequently asked questions
- What payroll taxes do employers pay in California?
- Social Security, Medicare, federal unemployment (FUTA) and California unemployment insurance (SUTA).
- What is the California SUTA wage base for 2026?
- $7,000 per employee. It changes to $7,000 in 2027.
- Does California require state income tax withholding?
- Yes. Employers withhold California income tax based on the employee's state withholding certificate or federal W-4.