California LLC Tax Calculator 2026

LLCs in California are pass-through entities for federal tax purposes. This means all net business income flows through to your personal tax return and is subject to federal self-employment tax (15.3% on 92.35% of net earnings up to $176,100 for Social Security, plus 2.9% Medicare on all earnings). An additional 0.9% Medicare tax applies to earnings above $200,000 ($250,000 married filing jointly).

California taxes LLC income as ordinary income through its progressive bracket system. Higher earnings push portions of your income into higher state tax brackets, similar to the federal system. Your effective state tax rate depends on your total taxable income after deductions.

California offers a standard deduction of $5,540 for single filers and $11,080 for married filing jointly, reducing your state taxable income.

If your LLC elects S-Corp status, you can potentially reduce your self-employment tax burden by paying yourself a reasonable salary and taking remaining profits as distributions. Use the calculator above to compare the default LLC treatment with S-Corp election for your specific situation in California.