California Paycheck Calculator

SDI (State Disability Insurance) is a mandatory California payroll deduction of 1.1% of your gross wages in 2026. There is no wage cap — the deduction applies to your entire income. SDI funds short-term disability and paid family leave benefits administered by the EDD.

No. California is one of the few states that does not tax Social Security benefits at the state level, regardless of your total income. This is a meaningful benefit for retirees living in California despite the high income tax rates on earned income.

California taxes all income earned while physically working in California, regardless of where your employer is based. If you live in California and work remotely, your wages are California-sourced income and subject to full CA state income tax. You may also need to file in your employer's state if you physically worked there during the year.

FICA (Federal Insurance Contributions Act) funds Social Security and Medicare. Employees pay 6.2% of wages toward Social Security (up to the $176,100 wage base in 2026) and 1.45% toward Medicare with no cap. These deductions apply in every state — they are federal, not state, taxes.

Gross pay is your salary or hourly wages before any deductions. Net pay (take-home pay) is what you actually receive after federal income tax, FICA, state income tax, and any voluntary deductions like health insurance or 401(k) contributions are withheld. This calculator shows both.