For the 2022 tax year (taxes filed in 2023), California has nine different tax rates for income taxes, which range from 1% to 12.3%. There is also a 1% mental health services tax that applies to income over $1 million.
How is it calculated and collected?
If you are a resident or do business in California and earn over a certain threshold, you are required to submit an income tax return. The FTB offers an online tax calculator to help calculate your taxes, which can be done on your own or with the help of a professional service. The calculator requires your filing status and the form you will use to file, which can be found on the FTB website.
You need to know your filing status, which can be Single, Married/registered domestic partner filing jointly, Married/registered domestic partner filing singly, Head of household or Qualifying widow(er).
You also need to know which form you will be using to file. There are three different forms — Form 540, Form 540 2EZ or Form 540 NR: Long or Short. You can find the details of which form to choose on the FTB website. Once you’ve used the form to find your taxable income, simply enter it into the calculator to find out how much you owe.
Tax brackets and federal income tax rates
California income tax is based on your taxable income and filing status. Tax returns are due April 18, 2023, or October 16, 2023, but residents and businesses in counties affected by the 2023 winter storms have until May 15, 2023, to file.
Single taxpayers living and working in the state of California
- Tax rate of 1% on the first $10,099 of taxable income.
- Tax rate of 2% on taxable income between $10,100 and $23,942.
- Tax rate of 4% on taxable income between $23,943 and $37,788.
- Tax rate of 6% on taxable income between $37,789 and $52,455.
- Tax rate of 8% on taxable income between $52,456 and $66,295.
- Tax rate of 9.3% on taxable income between $66,296 and $338,639.
- Tax rate of 10.3% on taxable income between $338,640 and $406,364.
- Tax rate of 11.3% on taxable income between $406,365 and $677,275.
- Tax rate of 12.3% on taxable income over $677,275.
Married taxpayers living and working in the state of California
- Tax rate of 1% on the first $20,198 of taxable income.
- Tax rate of 2% on taxable income between $20,199 and $47,884.
- Tax rate of 4% on taxable income between $47,885 and $75,576.
- Tax rate of 6% on taxable income between $75,577 and $104,910.
- Tax rate of 8% on taxable income between $104,911 and $132,590.
- Tax rate of 9.3% on taxable income between $132,591 and $677,278.
- Tax rate of 10.3% on taxable income between $677,279 and $812,728.
- Tax rate of 11.3% on taxable income between $812,729 and $1,354,550.
- Tax rate of 12.3% on taxable income over $1,354,550.
Head of household in the state of California
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Resident status rules
To be a California resident for tax purposes, your presence in California must not be temporary or transitory. If you live in California, even if you are temporarily out of state, you are considered a resident. Examples of situations that can make you a resident include spending more than nine months in California during a tax year, being assigned to a California office, staying in California without plans to leave, or recuperating from an illness.
Part-year resident status rules
If you were a non-resident of California for some of the tax year, you are generally considered a part-year resident and will pay California state tax on all income received during the period you were a resident, as well as state income tax on income from California sources while you were a nonresident. This is common for people who moved to California from another state.
Non-resident status rules
Non-residents may still have to pay California state tax on income they receive from California sources, like services performed, rent, sale or transfer of real estate, and income from a California business. Even if you live in California, you may be considered a nonresident for tax purposes if you were out of state for a certain period of time, but exceptions apply.
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