What Is the California Standard Deduction for 2026?

2025 vs. 2026 California Standard Deduction Table

Every September, the California Franchise Tax Board (FTB) adjusts standard deductions, tax brackets, and exemption credits for inflation based on the California Consumer Price Index. For 2026, deductions increased by roughly 3.4% compared to 2025:

Why California's Deduction Is Much Smaller Than Federal

If you're used to the federal standard deduction — $16,100 for Single filers and $32,200 for Married Filing Jointly in 2026 — California's numbers can come as a surprise. Because California did not conform to the federal Tax Cuts and Jobs Act's doubled standard deduction, roughly $10,200 more of a single filer's income is taxable at the state level than at the federal level.

That's also why many California homeowners who take the standard deduction on their federal return still choose to itemize on their California Form 540 if their mortgage interest, charitable gifts, and property taxes exceed $5,900 (or $11,800 for joint filers).

Don't Forget California Exemption Credits

Instead of a personal deduction that reduces taxable income, California gives taxpayers a dollar-for-dollar Exemption Credit after brackets are calculated:

• Personal Exemption Credit (2026): $158 for Single, MFS, and Head of Household; $316 for Married Filing Jointly (up from $153 / $306 in 2025).
• Dependent Exemption Credit (2026): $500 per qualifying dependent (up from $484 in 2025).

Because credits reduce your final tax bill dollar for dollar rather than just lowering taxable income, a family of four (Married Filing Jointly with 2 dependents) saves $1,316 directly off their calculated California state tax in 2026.

How It Works in Practice

Suppose you're a Single filer earning $100,000 in 2026 with no dependents. Subtracting the $5,900 standard deduction leaves $94,100 in California taxable income. Running that through the 2026 brackets produces $5,293.29 in gross state tax, minus your $158 personal credit = $5,135.29 estimated California state tax (a 5.14% effective rate).