You have two different items affecting your social security:
Social Security Windfall Elimination Provision: https://www.ssa.gov/pubs/EN-05-10045.pdf
SS WEP will reduce your income unless you qualify for some of the exceptions on the bottom of page 1 in the section on Some Exceptions. If you do not qualify, which based on your question it sounds like you may not, then you will have the reduction. I believe you have figured that out to about 50%.
In addition, if you keep working Social Security can also reduce your payment until you reach your full retirement age. If you were born between 1/2/1959 and 1/1/1960 full retirement is 66 years and 10 months. For 2021 the reduction is $1 from your benefits for each $2 you earn above $18,960. This amount will change on the year that you reach full retirement age to $1 from every $3 you earn above $50,520. These amounts will change for future years, so please look up the exact amount for the year you retiring and when you were born. Here is a good resource for this year: https://www.ssa.gov/pubs/EN-05-10069.pdf
For California a good reference for 2020 as to how things are taxed and if you have a basis in your IRA or pension can be found at: https://www.ftb.ca.gov/forms/2020/2020-1005-publication.pdf
As to whether or not to take Social Security as soon as possible, will depend on your financial situation. It would be best to sit down with a financial advisor to evaluate the specifics of your particular situation, who can see your entire situation.
The Social Security Administration has a great set of tools to help you understand the reductions until you reach full retirement age. They can be accessed either at your local Social Security office or at: https://www.ssa.gov/benefits/retirement/planner/agereduction.html
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