The California DE 4 form (Employee’s Withholding Allowance Certificate) tells your employer how much state income tax to withhold from your paycheck. You submit it to your employer — not to the Franchise Tax Board (FTB) — when you start a job or whenever your personal or financial situation changes. If you don’t file a DE 4, your employer must withhold at the highest legal rate: Single with zero allowances, which typically takes out more tax than necessary.
This guide covers everything you need for 2026: the updated low-income exemption thresholds, standard deduction amounts, how to fill out each line and worksheet, critical deadlines, penalties, and special rules for remote workers and military spouses.
What Is the DE 4 Form?
The DE 4 (Employee’s Withholding Allowance Certificate) is issued by the California Employment Development Department (EDD). Its purpose is to give your employer the information needed to calculate the correct amount of California Personal Income Tax (PIT) to withhold from each paycheck.
It works alongside the federal IRS Form W-4, but uses California-specific tax brackets, standard deductions, and credits. You file the DE 4 with your employer — not with the Franchise Tax Board (FTB).
2026 Tax Thresholds: Low-Income Exemption & Standard Deduction
For 2026, California has increased both the low-income exemption and the standard deduction. Using outdated numbers is the most common reason employees miscalculate their withholding, and the most common cause of content decay in competing guides.
Low-Income Exemption (2026)
If your annual wages are at or below the threshold shown below, no state income tax is required to be withheld from your paycheck.
| Filing Status / Allowances | 2026 Annual Threshold |
|---|---|
| Single | $18,896 |
| Married, claiming 0 or 1 allowance | $18,896 |
| Married, claiming 2 or more allowances | $37,791 |
| Head of Household | $37,791 |
Note: The low-income exemption increased from $18,368 / $36,736 in 2025 to $18,896 / $37,791 for 2026.
Standard Deduction (2026)
The standard deduction reduces your taxable income before withholding is calculated.
| Filing Status | 2026 Standard Deduction |
|---|---|
| Single or Married/RDP filing separately | $5,706 |
| Married/RDP filing jointly, Head of Household, or Qualifying Survivor | $11,412 |
The standard deduction increased from $5,540 / $11,080 in 2025 to $5,706 / $11,412 for 2026.
Also note: the annual personal exemption credit for 2026 increased to $168.30 (up from $163.90 in 2025).
How to Fill Out the DE 4 (Step-by-Step)
Whether you are starting a new job or updating your withholding, follow these steps carefully.
Step 1: Personal Information
- Enter your full legal name, Social Security number, and current address.
- Select your filing status: Single, Married, or Head of Household. California uses different definitions than the IRS for some statuses, so read the form instructions carefully.
Step 2: Claim Allowances (Line 1)
Line 1 is where you enter the total number of withholding allowances. This number is calculated using Worksheets A, B, and C (covered in the next section).
- Line 1a: Regular withholding allowances from Worksheet A.
- Line 1b: Allowances from Worksheet B (estimated deductions), if applicable.
- Line 1c: Total (add 1a + 1b).
California does not impose a formal cap on the number of allowances you may claim — the worksheets determine what you are entitled to.
Step 3: Additional Withholding (Line 2)
If you want your employer to withhold an extra fixed dollar amount from each paycheck — for example, to avoid owing taxes at year-end — enter that amount on Line 2.
Step 4: Claiming Exempt Status (Line 3 or 4)
You may claim exemption from California PIT withholding if:
- You had no federal income tax liability in the prior year, and
- You expect no federal income tax liability in the current year.
To claim exempt, check the appropriate box and write “Exempt” in the space provided.
Step 5: Sign and Date
You must sign and date the form under penalty of perjury. By signing, you certify that the number of allowances you claim does not exceed what you are entitled to under California law.
Understanding the Worksheets: A, B, and C
The DE 4 includes three worksheets to help you calculate the correct number of allowances for your situation.
Worksheet A — Regular Withholding Allowances
Use Worksheet A to calculate allowances based on your filing status, number of dependents, and other standard factors. For example, a single filer with no dependents typically enters “1” on Line 1a. Each allowance represents a unit of income on which no withholding is required, based on expected credits and deductions.
Worksheet B — Estimated Deductions
Use Worksheet B if you expect to itemize deductions on your California return. It converts your estimated itemized deductions — such as mortgage interest, property taxes, and charitable contributions — into additional allowances that reduce your withholding proportionally.
Worksheet C — Two-Earner / Multiple Job Adjustment
If you hold more than one job simultaneously, or if you are married and both spouses are employed, use Worksheet C. This worksheet uses a table-based lookup to determine how many allowances you need to reduce to account for the combined income pushing you into a higher marginal bracket. Because California’s tax brackets do not automatically account for multiple income sources, skipping Worksheet C is the primary reason dual-income households under-withhold and owe at filing. The adjustment is mechanical: look up your combined wages in the table provided, identify the reduction amount, and subtract it from your Line 1c total.
Which DE 4 worksheets apply to you?
Single with no dependents → Worksheet A only • Itemizing deductions → Add Worksheet B • Multiple jobs or dual income → Add Worksheet C
4 Critical Rules You Must Not Miss
Claiming “Exempt” from withholding is temporary. A new DE 4 must be submitted by February 15 each year to continue the exemption. If you miss this deadline, your employer is required by law to withhold as if you are single with zero allowances — the maximum rate — until a new form is received.
Failing to submit a completed DE 4 means your employer will withhold California PIT at the Single with 0 allowances rate — the highest possible withholding status. For a single filer earning $80,000, this default can result in over-withholding of more than $900 per year.
Under California Unemployment Insurance Code Section 13101, filing a withholding certificate with no reasonable basis that reduces your tax liability can result in a $500 fine and potential criminal liability. The number of allowances you claim must match your actual expected tax situation.
While military spouses are exempt from California PIT under the Military Spouses Residency Relief Act (MSRRA), they are not exempt from State Disability Insurance (SDI) and Unemployment Insurance (UI) taxes. Wages earned in California remain subject to SDI and UI regardless of domicile state.
Special Situations: Remote Workers, Nonresidents & Military Spouses
Remote and Out-of-State Workers
California uses a physical-presence standard for determining whether wages are subject to California PIT withholding.
- If you are a California resident working remotely for an out-of-state employer, your wages are generally subject to California PIT withholding.
- If you are a nonresident who performs services entirely outside California, your wages are not subject to California withholding. However, if you perform services both in and outside California, only the wages attributable to California work are subject to PIT withholding.
- If your employer is based in California but you work remotely from another state, you may need to provide your employer with documentation of your out-of-state residency to avoid incorrect withholding.
Military Spouses (MSRRA)
The Military Spouses Residency Relief Act (MSRRA) allows a military spouse to retain their state of domicile (home state) for income tax purposes, even when living in California due to military orders.
- To claim the MSRRA exemption from California PIT withholding, the spouse must check the applicable box on Line 4 of the DE 4 and submit the form to their employer.
- The spouse must share the same state of legal residency as the service member, and relocation to California must be the direct result of military orders.
- Remember: SDI and UI taxes still apply to wages earned in California, regardless of MSRRA status.
Key Takeaways
- Always file a DE 4 with your employer — skipping it means default Single/0 withholding, the highest possible rate.
- Use the 2026 numbers: Low-income exemption $18,896 / $37,791; standard deduction $5,706 / $11,412.
- Re-file exempt status by February 15 each year, or the exemption lapses automatically.
- Dual-income couples: Always complete the two-earner adjustment in Worksheets B and C to avoid under-withholding.
- Remote workers: Only California-source wages (services performed in California) are subject to CA PIT withholding.
- Military spouses: Claim MSRRA exemption on Line 4, but SDI and UI taxes still apply to California wages.
- Penalties are real: A $500 fine plus potential criminal liability applies to false or unsupported withholding claims under CUIC Section 13101.
Frequently Asked Questions
What happens if I don’t file a DE 4?
Your employer must withhold California PIT as if you are single with zero allowances, which is the highest legal withholding rate. You will likely over-withhold and receive a larger refund, but you lose the use of that money throughout the year.
How often should I update my DE 4?
Update your DE 4 whenever your personal or financial situation changes — for example, if you get married, have a child, buy a home, or start a second job. You can submit a revised DE 4 to your employer at any time, and it takes effect within your employer’s next regular payroll cycle.
Can I claim zero allowances on my California DE 4?
Yes. Claiming zero allowances results in the maximum tax withholding and will likely produce a larger refund when you file your tax return. Some people do this deliberately to avoid owing taxes, though it means a reduced paycheck throughout the year.
Is the DE 4 the same as the federal W-4?
No. The DE 4 is specifically for California state income tax withholding, while the W-4 controls federal income tax withholding. You must complete both forms separately, as California’s tax brackets, deductions, and credits differ from the federal system.
What is the penalty for filing a false DE 4?
Under CUIC Section 13101, filing a DE 4 with no reasonable basis that reduces your tax liability can result in a $500 fine and potential criminal penalties. The allowances you claim must reflect your actual expected tax situation.
Do remote workers have to pay California income tax?
It depends on where the work is performed. California taxes wages for services performed within California. If you are a nonresident who works entirely outside California, your wages from that work are not subject to California PIT withholding. If you split time between California and another state, only the California-days portion is taxable by California.
Are military spouses exempt from California withholding?
Under the MSRRA, military spouses may claim exemption from California PIT withholding by checking Line 4 on the DE 4, provided they share the service member’s state of domicile and are in California solely due to military orders. However, they are not exempt from SDI and UI payroll taxes on wages earned in California.
Where do I submit my completed DE 4?
You submit the DE 4 directly to your employer — not to the EDD or FTB. Your employer keeps the form on file and uses it to calculate payroll withholding. You do not send it to any government agency unless your employer requests it for compliance verification purposes.
Can my employer reject my DE 4?
Generally, no — employers are required to honor a properly completed DE 4. However, if the EDD audits an employer and determines that an employee claimed allowances with no reasonable basis, the employer may be directed to withhold at the Single/0 rate and notify the EDD. The employer itself is not penalized for honoring a form in good faith.
Final Recommendation
The DE 4 is a concise form with significant consequences. Taking 15 minutes to complete it accurately — using the 2026 thresholds and all applicable worksheets — can save you from an unexpected tax bill or a smaller-than-expected refund. Review your DE 4 at least once a year, and always submit a new one when your life or finances change.
For the official DE 4 form and its line-by-line instructions, visit the California EDD official website (edd.ca.gov) and navigate to the forms and publications section to download the current PDF.