Reading a California pay stub, line by line
California pay stubs carry two state deductions you won't see in most other states — and a few lines people search for every day. Here's what each one means in 2026:
CASDI (California State Disability Insurance). The line EDD itself says appears as "CASDI" on pay stubs (some payroll systems print CASDI-E or CA-SDI). For 2026 it is 1.3% of every dollar you earn — there is no wage cap. The cap was eliminated in January 2024, so high earners now contribute on all wages. It funds State Disability Insurance and Paid Family Leave benefits. On a $60,000 salary, CASDI takes about $780 a year ($30 per biweekly check).
CA State Income Tax (CA PIT). California's progressive income tax, withheld per your DE 4 elections. Rates run from 1% to 12.3% (plus a 1% Mental Health Services surcharge above $1 million of taxable income). Most middle earners land in the 6%–9.3% marginal range — but effective rates are much lower; see the take-home table below.
What you will NOT see: California employees do not pay State Unemployment Insurance (SUI) or Employment Training Tax — both are employer-paid in California (unlike Pennsylvania or New Jersey, where employees chip in). If a stub shows an employee-paid "CA SUI" deduction, that's a red flag worth questioning.
Plus the federal lines on every US stub: federal income tax, Social Security (6.2% up to $184,500 in 2026), and Medicare (1.45%).
California paycheck facts — 2026
| Item | 2026 value |
|---|---|
| State income tax | 1%–12.3% progressive (+1% over $1M taxable) |
| CASDI (employee) | 1.3%, no wage cap |
| Employee-paid SUI | None — employer-paid |
| Local income taxes | None — banned statewide (R&TC §17041.5) |
| State minimum wage | $16.90/hr (all employer sizes) |
| Fast-food minimum (AB 1228 chains) | $20.00/hr |
| Pay frequency law | At least semimonthly (LC §204) |
| Pay stub required? | Yes — 9 required items (LC §226) |
What you actually take home in California (2026 estimates)
Estimated for a single filer taking the standard deduction, including federal tax, Social Security, Medicare, CA income tax, and CASDI:
| Gross pay | Est. net per year | Net biweekly | Net monthly | Effective tax |
|---|---|---|---|---|
| $40,000 | $33,064 | $1,272 | $2,755 | 17.3% |
| $60,000 | $47,817 | $1,839 | $3,985 | 20.3% |
| $75,000 | $57,690 | $2,219 | $4,807 | 23.1% |
| $100,000 | $72,672 | $2,795 | $6,056 | 27.3% |
| Minimum wage, full-time ($16.90/hr) | $29,426 | $1,132 | $2,452 | 16.3% |
| Fast-food minimum, full-time ($20/hr) | $34,265 | $1,318 | $2,855 | 17.6% |
These use California's TY2025 brackets, the latest the Franchise Tax Board has published; the 2026 indexed figures arrive in October. A surprise worth knowing: at $60,000, a California worker's take-home is nearly identical to a New Yorker's ($47,817 vs $47,457) — California's lower brackets are gentler than its high-tax reputation suggests. The gap opens up above six figures.
Methodology: 2026 federal brackets and $16,100 standard deduction (IRS Rev. Proc. 2025-32), FICA per SSA, CA Schedule X and the $5,706 state standard deduction on a TY2025 basis (FTB; the 2026 indexed figures publish in October, so these are the latest published), CASDI 1.3%. Estimates only — your withholding depends on your W-4/DE 4, credits, and pre-tax benefits.
What California jobs pay (BLS, May 2025)
| Occupation | Median hourly | Median annual |
|---|---|---|
| Registered nurse | $67.44 | $140,270 |
| Software developer | $83.85 | $174,410 |
| Elementary school teacher | — | $99,650 |
| Truck driver (heavy) | $28.96 | $60,230 |
| Construction laborer | $28.98 | $60,270 |
| Customer service rep | $23.83 | $49,560 |
| Retail salesperson | $18.48 | $38,440 |
| Waiter / waitress | $17.35 | $36,080 |
California's median hourly wage across all occupations is $28.00 — $3.49 above the national median of $24.51.
California's workforce in numbers
- 39.4 million residents, with a civilian labor force of 19.6 million — the largest in the nation (Census 2025 estimate; BLS, June 2026)
- 3,537,469 self-employed (nonemployer) businesses — more than any other state (Census, 2023). That's roughly 1 for every 11 Californians — freelancers, gig drivers, and contractors who get no employer pay stub and often need to document income themselves
- 1,029,689 employer establishments paying 16.4 million employees (Census CBP, 2023)
- Mean annual wage: $80,690 vs $69,770 nationally (BLS OEWS, May 2025)
California pay rules — the three answers people actually need
Final paycheck: California has the toughest rule in the country. Fired employees must be paid immediately at termination — including accrued vacation. If you quit with 72+ hours notice, final pay is due on your last day; without notice, within 72 hours. Miss the deadline and the employer owes a waiting-time penalty of one full day's wages per day late, up to 30 days (Labor Code §§201–203).
Pay frequency: Wages must be paid at least twice a month. Work done the 1st–15th must be paid by the 26th; work done the 16th–month-end by the 10th of the next month (LC §204).
Is a pay stub required? Yes. Labor Code §226 requires an itemized wage statement with every paycheck listing nine items: gross wages, hours worked, piece-rate units, all deductions, net wages, pay period dates, employee name and ID, employer name and address, and every hourly rate used. Violations cost employers $50–$100 per employee per pay period, up to $4,000 per employee.
City minimum wages above the state floor (2026)
California cities can — and do — set higher minimums than the state's $16.90:
- San Francisco: $19.61/hr (July 2026)
- Los Angeles: $18.42/hr (July 2026)
- San Diego: $17.75/hr (January 2026)
- Fast-food workers statewide at chains with 60+ national locations: $20.00/hr (AB 1228)
If you work in one of these cities, your stub's hourly rate should reflect the city rate, not the state minimum. (No California city taxes your paycheck, though — local income taxes are prohibited by state law.)
How California compares with its neighbors (take-home on $60,000, 2026 est.)
| State | Est. net/year | Difference vs CA |
|---|---|---|
| California | $47,817 | — |
| Texas (no state income tax) | $50,390 | +$2,573 |
| Nevada (no state income tax) | ~$50,390 | +~$2,573 |
| New York | $47,457 | −$360 |
Moving from California to a no-income-tax state saves a $60k earner about $214/month — before considering cost-of-living differences.
FAQ
What is CASDI on my pay stub?
CASDI is California State Disability Insurance — a mandatory employee deduction of 1.3% of all wages in 2026, with no cap. It funds disability and paid family leave benefits. On a $60,000 salary it costs about $780 a year.
How much tax comes out of a paycheck in California?
For a single filer at $60,000 with standard deductions, expect roughly 20% total — about $1,839 net from a $2,308 biweekly gross — covering federal tax, Social Security, Medicare, CA income tax, and CASDI. Higher earners lose a larger share.
Does my employer have to give me a pay stub in California?
Yes. Labor Code §226 requires an itemized wage statement with every paycheck, listing nine specific items including gross pay, hours, all deductions, and net pay. Penalties reach $4,000 per employee.
Why is there no SUI deduction on my California stub?
Because California employers pay unemployment insurance entirely themselves. Employees pay only CASDI, state income tax, and the federal lines.
When must my final paycheck be paid in California?
Immediately if you're fired (including unused vacation); on your last day if you quit with 72+ hours notice; within 72 hours if you quit without notice. Late payment triggers a penalty of a day's wages per day, up to 30 days.
Is the fast-food minimum wage really $20 in California?
Yes — since April 2024, limited-service restaurants belonging to chains with 60+ locations nationwide must pay at least $20.00/hr under AB 1228. Full-time at that rate grosses $41,600/year, netting roughly $34,265 after taxes.