California Minimum Wage 2026: How Much You Take Home After Taxes
If you searched "California minimum wage 2026," you probably already found the number: $16.90 an hour. But that figure is your gross pay — what your employer owes you before any deductions. What you actually take home, after federal and state taxes, is a different number, and it's the one that matters for your budget.
This guide covers where the $16.90 comes from, why it changes every year, what exceptions apply, and — most importantly — how much it really is after taxes, based on how you get paid.
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Go to the calculator »What is California's minimum wage in 2026?
California's general minimum wage is $16.90 per hour as of January 1, 2026, for every employer regardless of size. That's set by California law (Labor Code §1182.12).
It's not a fixed number — it has risen every year since Senate Bill 3 (2016) established the automatic adjustment mechanism:
| Effective | Minimum wage |
|---|---|
| January 1, 2023 | $15.50/hr |
| January 1, 2024 | $16.00/hr |
| January 1, 2025 | $16.50/hr |
| January 1, 2026 | $16.90/hr |
| January 1, 2027 (announced) | $17.40/hr |
Why does it go up every year?
Every year, the state checks how much prices went up nationwide over the 12 months ending June 30 — like noticing your grocery bill costs more for the same basket of food as last year — and raises the minimum wage by about that much, rounded to the nearest 10 cents, so it doesn't lose value. There's a cap: the automatic yearly adjustment can't be more than 3.5%, no matter how high inflation runs.
For 2026, average prices from July 2024 to June 2025 were 2.49% higher than in the previous 12 months, so the minimum wage went from $16.50 to $16.90 (Labor Code §1182.12).
Already announced: on January 1, 2027, the statewide minimum wage goes up to $17.40 per hour (California Department of Industrial Relations). The examples on this page use the 2026 rate.
Key fact: unlike federal law and most states, California allows no tip credit at all (Labor Code §351). If you work for tips — in a restaurant, for example — your employer must pay you the full minimum wage ($16.90/hour, or your city's higher rate) on top of whatever you make in tips.
Exceptions: when the minimum is different
$16.90 is the general rule, but some workers have a different minimum. The most common cases:
- Fast food workers at large chains (more than 60 locations nationwide): $20.00/hour since April 2024, under its own law (AB 1228). At independent restaurants or chains with 60 or fewer locations, the regular minimum applies.
- Health care workers: $19.28 to $25.00/hour since July 1, 2026, depending on the type of facility (SB 525); lower rates applied from January to June.
- Cities and counties with their own ordinance: several California localities, especially in the Bay Area and Southern California, require a minimum above the state rate — for example San Francisco ($19.61/hour) or Emeryville ($20.34/hour). If you work in one of these cities, you're generally entitled to the higher local minimum (some cities set a lower rate for small employers).
There are also a few narrow exceptions. For example, "learners" with no experience in that kind of job can be paid 85% of the minimum during their first 160 hours, and outside salespeople and the employer's own parent, spouse, or child are not covered.
For your exact city figure, see our complete California minimum wage by city guide.
How much you take home, based on how you get paid
The following examples are for a single filer (current W-4 with no extra adjustments, 1 allowance on the California DE 4), working 40 hours a week at $16.90/hour, using official 2026 tax rates (IRS Pub 15-T and CA EDD DE 44). The five mandatory deductions — federal, California state, Social Security, Medicare, and SDI — are the same regardless of your pay frequency; what changes is how they're split up.
| Item | Amount |
|---|---|
| Gross pay | $676.00 |
| Federal income tax | -$39.20 |
| California state tax | -$8.22 |
| Social Security (6.2%) | -$41.91 |
| Medicare (1.45%) | -$9.80 |
| CA SDI (1.3%) | -$8.79 |
| Estimated net pay | $568.08 |
| Item | Amount |
|---|---|
| Gross pay | $1,352.00 |
| Federal income tax | -$78.39 |
| California state tax | -$16.45 |
| Social Security (6.2%) | -$83.82 |
| Medicare (1.45%) | -$19.60 |
| CA SDI (1.3%) | -$17.58 |
| Estimated net pay | $1,136.16 |
| Item | Amount |
|---|---|
| Gross pay | $2,929.33 |
| Federal income tax | -$169.85 |
| California state tax | -$35.64 |
| Social Security (6.2%) | -$181.62 |
| Medicare (1.45%) | -$42.48 |
| CA SDI (1.3%) | -$38.08 |
| Estimated net pay | $2,461.66 |
In annual terms: $16.90/hour at 40 hours a week comes to $35,152 gross per year — of which you keep approximately $29,540, close to 84% of gross. The other 16% goes to the five required deductions on a typical California paycheck.
Does it change if I'm married or head of household?
Yes. Using the same $1,352.00 biweekly gross:
| Filing status | Biweekly net pay |
|---|---|
| Single (1 allowance) | $1,136.16 |
| Married (1 allowance) | $1,210.58 |
| Head of Household (1 allowance) | $1,188.68 |
Most of the difference comes from federal withholding: the IRS withholding tables leave more of your pay untaxed if you're married or head of household. Married workers also have a little less California tax withheld (about $7 less per check here), because California's married brackets are wider. Head of household also has no California tax withheld at this income, because California's low-income exemption is higher for that status. Your exact number also depends on your W-4 and on how many allowances you claim on your California DE 4.
Earning more than the minimum? See our take-home pay table from $16.90 to $70 an hour.
See an estimate for your own situation
The examples above use 1 allowance. Use the calculator with your real situation — filing status, allowances, and pay frequency — for an estimate of your net pay.
Go to the calculator »Frequently asked questions
Sources
The numbers in this article come from these official sources and references:
- California DIR — Minimum Wage 2026 — the $16.90 state minimum wage
- California DIR — 2027 minimum wage announcement (August 13, 2026) — $17.40 starting January 1, 2027
- Labor Commissioner — Minimum Wage FAQ — who is covered, annual inflation adjustment and exceptions
- Labor Commissioner — Fast Food Minimum Wage FAQ — $20 at chains with more than 60 locations nationwide
- Labor Commissioner — Health Care Worker Minimum Wage FAQ — health care minimum wage rates
- UC Berkeley Labor Center — Inventory of city and county minimum wage ordinances — the local rates used as examples (San Francisco, Emeryville)
- Labor Commissioner — Tips and gratuities — no tip credit in California (Labor Code §351)
- IRS Publication 15-T (2026) — federal income tax withholding methods used in the examples
- IRS Topic 751 — Social Security (6.2%) and Medicare (1.45%) rates
- California EDD — Rates and Withholding — 2026 SDI rate (1.3%) and the Method B tables used for California withholding
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