Income tax rates in California vary based on an individual’s income and range from 1% to 12.3%, with higher rates applying to individuals with higher income levels. A tax rate schedule is available from the California Franchise Tax Board.

PIT withholding refers to the state’s personal income tax withholding requirement for employers. California employers must withhold a certain amount of state income tax from their employees’ wages and remit it to the state on their behalf; the amount is based on the employee’s taxable income and the withholding tables used by the state of California. Funds from PIT go toward maintaining public services such as: schools, infrastructure such as roads, park maintenance, and health and human services.

SDI is paid for with a portion of an employee’s wages, and employers in California are responsible for withholding and remitting SDI tax on behalf of their workers; this amount usually appears as “CASDI” on an employee’s pay stub.