California Business Tax Calculator

Calculate corporate income tax, franchise tax, and gross receipts tax for businesses operating in California.

Why calculating business in California is different

California has the highest top marginal income tax rate in the U.S. and a complex tax structure with SDI contributions.

State Income Tax
1% - 13.3%
Base Sales Tax
7.25%
State Min Wage
$16.00 / hr
Abbreviation
CA

California Business Interactive Tool

This calculator uses the latest 2026 data for California, including the minimum wage of $16.00 and the specific state income tax rates (1% - 13.3%).

Frequently Asked Questions about California Business

What is the corporate tax rate in California?

Corporate tax structures vary. In addition to potential corporate income taxes, businesses in California must also consider unemployment insurance taxes, sales tax collection (7.25%), and local business licenses.

Do LLCs pay tax in California?

LLCs are typically pass-through entities, meaning profits pass through to the owners' personal tax returns and are taxed at the personal 1% - 13.3% rate. However, California may also impose an annual LLC franchise fee.