The Golden State has nine different tax rates which range from 1% to 12.30% and depend on filing status. Additionally, California adds a 1% surcharge to the income tax rates of anyone with $1 million or more in taxable income. The following list applies to single taxpayers and those who are married but file separately.

Tax Rates:

• 1% rate on the first $7,582 of taxable income
• 2% between $7,583 and $17,976 of taxable income
• 4% between $17,977 and $28,371 of taxable income
• 6% between $28,372 and $39,384 of taxable income
• 8% between $39,385 and $49,774 of taxable income
• 9.30% between $49,775 and 254,250 of taxable income
• 10.3% between $254,251 and 305,100 of taxable income
• 11.30% between $305,101 and $508,500 of taxable income
• 12.30% on income of $508,501 and greater.

Any income of 1 million or higher is subject to a 1% surcharge, known as the Mental Health Services Tax. This technically makes California’s highest tax rate at 13.30%.

For taxpayers who are married and file their taxes together, the tax rates are the same, except the income levels double to accommodate both people. For example, a married couple with an income of $78,770 annually would be taxed at 8%, since it is double the income threshold for single taxpayers.

State income taxes are filed using form 540EZ, 540A (short form), Form 540 (long form) or Form 540-ADS, and are usually due by April 15, unless the date falls on a weekend or a holiday. In those scenarios, taxes are due on the following business day.

California Residents

To be considered a resident of California, you have to meet one of two criteria:

• You need to be present in the state for any purpose that is not temporary or transitory.
• You live in California, but you are currently residing in another area for a temporary period.

You are considered to be living in California if it is the place you willingly create your home, including yourself and your family, with the complete intention of residing permanently in the state. When you are away, it is the place where you come back to when you return.

Residents are taxed on all income, regardless of where it was earned. California does allow taxpayers to claim a credit against any net tax paid outside of California on doubly taxed income.