How Etsy Taxes Work in California
California has one of the highest state income tax rates in the USA (up to 13.3%). For Etsy workers in California, the base planning rate is 9.3%. California also requires separate estimated tax payments to the Franchise Tax Board (FTB) using Form 540-ES.
SE Tax
15.3%
Federal (all states)
Federal Tax
10–37%
Based on income
CA State Tax
9.3%
California rate
2026 Quarterly Tax Deadlines for California
| Quarter | Due Date | Federal (1040-ES) | CA State |
|---|
| NOWQ1 2026 | April 15, 2026 | ✓ Required | Required |
| Q2 2026 | June 16, 2026 | ✓ Required | Required |
| Q3 2026 | September 15, 2026 | ✓ Required | Required |
| Q4 2026 | January 15, 2027 | ✓ Required | Required |
Top Tax Deductions for Etsy Workers in California
FAQ — Etsy Taxes in California 2026
Q: How much is Etsy tax in California?
In California, Etsy workers pay 15.3% self-employment tax, federal income tax (10–37%), plus 9.3% California state income tax. On $50,000 net income, expect to owe approximately $17,000–$22,000 total.
Q: Do I need to make quarterly payments in California?
Yes. In California, you must make both federal quarterly estimated payments (IRS Form 1040-ES) and California state quarterly payments if you expect to owe $1,000 or more.
Q: What is the self-employment tax rate in California for Etsy workers?
The federal self-employment tax rate is 15.3% regardless of state. This covers Social Security (12.4%) and Medicare (2.9%). In California, you additionally pay 9.3% state income tax.
Q: Does Etsy take out taxes in California?
No. Etsy classifies workers as independent contractors, not employees. No taxes are withheld from your payments. You are responsible for paying all federal SE tax, federal income tax, and California state income tax yourself, typically through quarterly estimated payments.
Disclaimer: State tax rates are for estimation purposes. Verify with your state's department of revenue or a licensed CPA. Not affiliated with the IRS, Etsy, or any government agency.