The 2024 picture for California residents
In 2024, California residents paid federal ordinary income tax at brackets topping out at 37%, plus California state tax up to 13.3%, plus Medicare (1.45% + 0.9% additional above $200k single MAGI), plus a federal supplemental-withholding layer on RSU-style income.
2024 federal capital gains brackets
In $2024, federal long-term capital gains rates were 0% up to approximately $44,625, 15% up to approximately $492,300, and 20% above. The 3.8% NIIT added for MAGI above $200,000 single, producing a 23.8% top federal rate on long-term equity sales.
California treatment in 2024
California taxed long-term capital gains at ordinary income rates in 2024, up to 13.3%. Combined with the 23.8% federal top, a California-resident equity seller paid approximately 37.1% on peak-bracket gains.
Frequently asked
- What supplemental-wage withholding rate applied to RSU income in California in 2024?
- The federal supplemental-wage withholding rate was 22% on the first $1,000,000 of supplemental wages per calendar year, rising to 37% above that. California state withholding ran up to 13.3% at the top bracket.
- Did California recognize federal QSBS exclusion in 2024?
- California's conformity status varies year by year and by type of taxpayer. As of 2024, most states other than California, New Jersey, Pennsylvania, and Mississippi either conformed fully or partially to Section 1202. Check the 2024 filing instructions for the specific language.
- What was the top federal ordinary bracket in 2024, and how did it apply to California residents?
- The 37% federal ordinary bracket started around $609,350 of taxable income for single filers in 2024. California stacked 13.3% on top of that for high earners, producing a combined top marginal rate of approximately 50.0%.