California Personal Income Tax Laws
A handful of states (not including California) do not levy personal income tax on top of the taxes collected by the federal government. California personal income tax laws are progressive in the sense that they charge a much higher rate for high earners than for those earning relatively small incomes. For instance, those earning less than $7,581 in taxable income are only responsible for a 1 percent state income tax rate. But those earning in excess of $508,500 annually must pay a 12.3 percent tax rate. To determine rates for dual filers (such as married couples filing jointly), simply double the income numbers.
Income taxes pay for state programs and projects such as public schools and state highways. The state's Franchise Tax Board (FTB) audits the expenditures of state income tax and makes this data available to the public. In 2013, for example, 31.7 percent (the largest portion) of the state's income tax revenue went to health and human services, with 27.4 percent going to K-12 public education.
California's personal income tax rates are detailed in the table below. See State Tax Laws to learn more about California and other state taxes. Go to the "Individuals" section of the FTB's web portal to access California income tax filing instructions, download forms, calculate tax liabilities, and more.
|Code Section||Rev. & Tax Code §§17041, et seq.|
|Who is Required to File||Resident persons, including estates and trusts; nonresidents and part-year residents are liable for prorata share|
|Rate||$0 and up: 1.0%; $7,582 and up: 2.0%; $17,976 and up: 4.0%; $28,371 and up: 6.0%; $39,382 and up: 8.0%; $49,774 and up: 9.3%; $254,250 and up: 10.3%; $305,100 and up: 11.3%; $508,500 and up: 12.3% (all rates apply to single filers -- simply double the income limits for dual-filing)
|Federal Income Tax Deductible||No|
|Federal Income Used as Basis||Yes|
Note: State laws are constantly changing -- contact a California tax attorney or conduct your own legal research to verify the state law(s) you are researching.
Research the Law
- California Law
- Official State Codes - Links to the official online statutes (laws) in all 50 states and DC.
California Personal Income Tax Laws: Related Resources