TaxBandits Knowledge Base

What are the taxes applicable to California?

Minimum Wage Information for California

The minimum wage rate for California varies compared to the federal minimum wage rate.

Minimum wage	$16.00
Tipped Minimum wage	$16.00
Maximum Tip Credited	N/A

Unemployment Insurance (UI) rate for California

Maximum Taxable Wages	$7,000
Employee Deduction	None
Employer Tax Rates	0.1-3.4%
New Employer Tax Rates	3.40%

Applicable taxes
Here are the California taxes that are applicable for employees and employers.

Employer taxes

• California State Unemployment Tax
• California Employment Training Tax

Employee taxes

• California SDI
• California State Tax

Note: The state of California does not require any local taxes

California State Income tax
To understand the withholding tax rate for California, learn more.

More Information
To gather more information about California state tax, check out the Employment Development Department(EDD).