Bonus Tax Calculator — California (2026)

Percentage method vs aggregate method

Under the percentage method the bonus is separated from regular pay and hit with the flat 22% federal rate (37% above $1 million of supplemental wages in a year). Under the aggregate method the employer combines the bonus with your normal check and withholds at your marginal rate — which can temporarily withhold far more than 22%.

Either way the bonus is ordinary income. If your marginal federal bracket is 24% or higher, the 22% flat withholding leaves you short at filing time; if you are in the 12% bracket, you are over-withheld and get it back as a refund.

The California layer on bonuses

California taxes bonus income at the same progressive brackets as salary — up to 12.30%. A $10,000 bonus therefore carries roughly $1,230 of California tax at the top rate, on top of federal and FICA.

California has no city-level income tax, but high sales tax (7.25%–10.75%) and SDI payroll deduction (1.1% on wages up to $153,164).

Reducing the tax on a Los Angeles bonus

Deferring part of the bonus into a 401(k) or HSA cuts federal and California income tax immediately, though FICA still applies. Some employers allow a separate bonus deferral election — ask payroll before the payment date, not after.

Timing matters too: pushing a bonus into January shifts the tax year, useful if this year included unusually high income from tech work or an equity event.

Local and payroll taxes California adds on top

State Disability Insurance (SDI) of 1.2% is withheld from all wages with no wage cap — an extra line most other states do not have. That deduction sits outside the federal and state income tax lines, so build it into your own budget on top of the numbers above.

California has no city-level income tax, but high sales tax (7.25%–10.75%) and SDI payroll deduction (1.1% on wages up to $153,164).

Bonuses are wages, so every local layer that applies to your regular California paycheck applies to the bonus too — which is why a supplemental payment often nets a smaller share than your salary does.

Working across a state line from California

California has no income-tax reciprocity agreements, so if you live here and work across a state line you generally file a nonresident return in the work state and claim a credit at home to avoid double taxation.

Remote and hybrid work complicates this further: most states tax income where the work is physically performed, so a Los Angeles resident spending part of the year at a client site in Nevada may owe a nonresident return there. Keep a day-count log if you split time between states.

The rest of your California tax bill

California charges a 7.25% state sales tax, homeowners pay an average effective property tax of 0.71% of market value, and the minimum wage in force during 2026 is $16.90 an hour.

District taxes lift combined rates to 10.75% in parts of Los Angeles County.

Income tax is only one part of a state's take. California recovers revenue through sales and property tax as well, which is why headline income tax rates alone are a poor guide to how far a salary really goes. California exempts Social Security but fully taxes pensions, 401(k) and IRA withdrawals; early distributions face an additional 2.5% state penalty.

California vs Nevada on the same salary

On a $75,000 salary, a single filer keeps about $58,561 a year in California against roughly $61,593 in Nevada — a difference of $3,031, or $253 a month.

Effective combined rates are 21.9% in California and 17.9% in Nevada. Set that gap against living costs: index 142 here versus 102 there, with property tax at 0.71% and 0.55% respectively.

California income tax brackets 2026 (single filer)

Frequently Asked Questions

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