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2024 CA Withholding Allowances
November 16, 2023
California updated its annual standard deduction amount and value of state allowances for 2024. Learn how to stay compliant.
Alert
At A Glance
- California increased the annual standard deduction amount and value of state allowances.
- Tax rates used will range from 1.1% to 14.63%.
2024 California Annual Standard Deduction
Effective January 1, 2024, the annual standard deduction will increase to $5,363 or $10,726 based on the employee’s filing status and the number of allowances claimed. The value of a state allowance increases to $158.40 annually. Review Method B exact calculation method for more detailed information.
California’s general withholding instructions recommend that married employees with employed spouses use Single as their filing status to avoid under-withholding state income tax.
For more information on California wage and payroll laws, check out our California Wage and Payroll Tax Facts page.
Next Steps
- Paylocity updated standard deduction and allowance values for the effective date of January 1, 2024.
- Employees can submit an updated California DE-4 form to their employer to change their California withholding amounts.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.
Keep Up With Compliance
Between constantly changing employment laws and updates to the Affordable Care Act (ACA), keeping your workplace compliant can be a time-consuming and costly challenge. Eliminate the stress and stay up to date with our Compliance Dashboard. View compliance alerts and get a bird’s eye view of what you need to do to avoid fines and penalties.