California is the most populous state, with 39.4 million residents, and the most expensive place in the country to buy a home: its median home value is more than twice the national figure. It also has the highest top income tax rate of any state, offset in part by Proposition 13’s limits on property taxes and by the highest median household income of the large states. This guide collects the numbers and rules that matter if you live in California or plan to move there.
California guides
California taxes
Income tax from 1% to 13.3%, a 7.25% base sales tax and property taxes capped by Proposition 13. Read the tax guide.
Moving to California
Get a California license within 10 days and register your car within 20. See the step-by-step guide.
California paycheck calculator
Estimate take-home pay after federal and California income tax, SDI and FICA. Open the calculator.
What is different about California
The highest top income tax rate
California taxes income in nine brackets from 1% to 12.3%, plus a 1% surcharge on income above $1 million, for a top rate of 13.3%. Most workers also pay 1.3% of all wages for State Disability Insurance (SDI). Middle incomes pay less than the headline rate suggests: a single filer earning $75,000 owes about $2,800 in state income tax. Details are in our California tax guide.
Property taxes limited by Proposition 13
The base property tax rate is 1% of a home’s assessed value, plus voter-approved local charges, and the assessed value can rise no more than 2% a year until the home is sold. Long-time owners therefore often pay far less than new buyers of similar homes. The effective rate is about 0.70% of home value, below the national figure, but on high home prices the bills are still large.
The most expensive housing in the country
The median home value of $734,700 is 2.2 times the U.S. median, and median rent of $2,036 is 44% higher. Only 55.9% of homes are owner-occupied, one of the lowest rates of any state.
Smog checks and strict vehicle rules
Most gasoline cars from 1976 or later and newer diesel vehicles need a smog check when they are first registered in California, and most need one every two years after that; cars in their first eight model years skip the two-year check and pay a smog abatement fee instead. California sets its own vehicle emissions standards, so a new car bought in another state may not be eligible for registration unless it meets them.
Earthquake and wildfire insurance
Standard homeowners policies do not cover earthquake damage; it is sold separately, including through the California Earthquake Authority. In wildfire-prone areas, some insurers have stopped writing new policies, and many homeowners rely on the state’s FAIR Plan. Get insurance quotes before you commit to a home.
A large immigrant population
27.0% of Californians were born outside the United States, nearly twice the national share of 14.1%.
California at a glance
| Measure | California | United States |
|---|---|---|
| Population, July 1, 2025 | 39,355,309 | 341,784,857 |
| Population change, 2020–2025 | −0.5% | +3.1% |
| Median household income | $99,122 | $80,734 |
| Median home value | $734,700 | $332,700 |
| Median gross rent | $2,036 | $1,413 |
| Homeownership rate | 55.9% | 65.2% |
| Poverty rate | 11.8% | 10.6% |
| Bachelor’s degree or higher (age 25+) | 37.1% | 35.7% |
| Born outside the U.S. | 27.0% | 14.1% |
| Land area | 155,858 sq mi | 3,533,038 sq mi |
| People per square mile (2020) | 253.7 | 93.8 |
Source: U.S. Census Bureau QuickFacts. Income, home value, rent, homeownership, education and place of birth are 2020–2024 American Community Survey estimates; income is in 2024 dollars.
Largest cities
Los Angeles is the second-largest U.S. city after New York. California has four cities with more than 800,000 people.
| City | Population (July 2024) |
|---|---|
| Los Angeles | 3,878,704 |
| San Diego | 1,404,452 |
| San Jose | 997,368 |
| San Francisco | 827,526 |
| Fresno | 550,105 |
| Sacramento | 535,798 |
Source: U.S. Census Bureau, Vintage 2024 city and town population estimates, via City Population. Figures are for city limits, not metro areas.
Frequently asked questions
What is California’s income tax rate?
Rates run from 1% to 12.3% across nine brackets, plus a 1% surcharge on taxable income above $1 million, for a top rate of 13.3%. Most wage earners also pay 1.3% for State Disability Insurance.
Is California losing population?
The Census Bureau estimates California’s population was 0.5% lower in July 2025 than in April 2020, after losses early in the decade. It remains the most populous state by a wide margin.
Does California tax Social Security?
No. Social Security benefits are exempt, but pensions, 401(k) and IRA withdrawals and investment income are taxed as ordinary income.
What do I need to do after moving to California?
Apply for a California driver license within 10 days and register your vehicle within 20 days. Our California moving guide has every step.
Last updated: November 5, 2026.
Sources
- U.S. Census Bureau: QuickFacts, California and United States
- City Population: California cities (U.S. Census Bureau estimates)
- Tax Foundation: California tax data
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026
- California DMV: New to California
- California Earthquake Authority
- California FAIR Plan