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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.

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