Released: August 29, 2007
The Franchise Tax Board (FTB) today announced state tax brackets set for the 2007 tax year may reduce the amount some California taxpayers will pay in personal income taxes next year.
The brackets will be indexed based on the inflation rate of 3.1 percent, as measured by the California Consumer Price Index for all urban consumers from June 2006 to June 2007. The FTB also takes into consideration filing requirement thresholds, standard deductions, and certain credits. Last year's inflation rate measured 4.8 percent.
"The new tax brackets mean tax relief for the average family," said State Controller and FTB Chair John Chiang. "If the taxpayer's income from the previous year is unchanged, the compounding effect of indexed tax brackets, standard deductions and personal exemptions will result in that individual paying less in state taxes for the 2007 tax year."
The FTB designs the minimum filing requirement thresholds to ensure that most people who will not owe taxes are not required to file a tax return. The FTB adjusts these tables each year to include the added senior exemption and the dependent exemption credits. The tax threshold, the amount of income reached where a tax liability is incurred, has risen to $11,620 of adjusted gross income for single and married filing separate taxpayers, and $23,241 for married filing joint, surviving spouse, and head of household filers.
The standard deduction will increase for single or married filing separate taxpayers from $3,410 to $3,516. For married filing jointly, qualifying widow(er), or head of household taxpayers, the standard deduction increases from $6,820 to $7,032. The personal exemption credit increases for single, married filing separate, or head of household taxpayers from $91 to $94 and for married filing jointly or surviving spouses from $182 to $188. The dependent exemption credit changes from $285 to $294 for each dependent.
Other tax credits affected by indexing include the Joint Custody Head of Household Credit, Dependent Parent Credit, Qualified Senior Head of Household Credit, and the Renter's Tax Credit.
Editor's Note: See the attached chart for tax rates and filing requirement amounts.
2007 CALIFORNIA TAX RATE SCHEDULES
| SCHEDULE X SINGLE OR MARRIED FILING SEPARATE TAXPAYERS |
|||||
|---|---|---|---|---|---|
| IF THE TAXABLE INCOME IS | COMPUTED TAX IS | ||||
| OVER | BUT NOT OVER | OF AMOUNT OVER | |||
$0 |
$6,827 |
$0.00 |
PLUS | 1.0% | $0 |
$6,827 |
$16,185 |
$68.27 |
PLUS | 2.0% | $6,827 |
$16,185 |
$25,544 |
$255.43 |
PLUS | 4.0% | $16,185 |
$25,544 |
$35,460 |
$629.79 |
PLUS | 6.0% | $25,544 |
$35,460 |
$44,814 |
$1,224.75 |
PLUS | 8.0% | $35,460 |
$44,814 |
AND OVER |
$1,973.07 |
PLUS | 9.3% | $44,814 |
| SCHEDULE Y MARRIED FILING JOINT OR QUALIFYING WIDOW(ER) TAXPAYERS |
|||||
| IF THE TAXABLE INCOME IS | COMPUTED TAX IS | ||||
| OVER | BUT NOT OVER | OF AMOUNT OVER | |||
$0 |
$13,654 |
$0.00 |
PLUS | 1.0% | $0 |
$13,654 |
$32,370 |
$136.54 |
PLUS | 2.0% | $13,654 |
$32,370 |
$51,088 |
$510.86 |
PLUS | 4.0% | $32,370 |
$51,088 |
$70,920 |
$1,259,58 |
PLUS | 6.0% | $51,088 |
$70,920 |
$89,628 |
$2,449.50 |
PLUS | 8.0% | $70,920 |
$89,628 |
AND OVER |
$3,946.14 |
PLUS | 9.3% | $89,628 |
| SCHEDULE Z HEAD OF HOUSEHOLD TAXPAYERS |
|||||
| IF THE TAXABLE INCOME IS | COMPUTED TAX IS | ||||
| OVER | BUT NOT OVER | OF AMOUNT OVER | |||
$0 |
$13,662 |
$0.00 |
PLUS | 1.0% | $0 |
$13,662 |
$32,370 |
$136.62 |
PLUS | 2.0% | $13,662 |
$32,370 |
$41,728 |
$510.78 |
PLUS | 4.0% | $32,370 |
$41,728 |
$51,643 |
$885.10 |
PLUS | 6.0% | $41,728 |
$51,643 |
$61,000 |
$1,480.00 |
PLUS | 8.0% | $51,643 |
$61,000 |
AND OVER |
$2,228.56 |
PLUS | 9.3% | $61,000 |
2007 Filing Requirement Amounts
Gross incomemore than:
Age on 12/31/07 |
No dependents |
1 dependent |
2 or more dependents |
|
|---|---|---|---|---|
| Single or head of household | Under 65 |
14,138 |
23,938 |
31,288 |
65 or older |
18,838 |
26,188 |
32,068 |
Age on 12/31/07 |
No dependents |
1 dependent |
2 or more dependents |
|
|---|---|---|---|---|
| Married Or | Under 65 (both spouses) |
28,276 |
38,076 |
45,426 |
| Married Filing | 65 or older (one spouse) |
32,976 |
40,326 |
46,206 |
| Separate | 65 or older (both spouses) |
37,676 |
45,026 |
50,906 |
Age on 12/31/07 |
No dependents |
1 dependent |
2 or more dependents |
|
|---|---|---|---|---|
| Qualifying widow(er) | Under 65 |
N/A |
23,938 |
31,288 |
65 or older |
N/A |
26,188 |
32,068 |
Adjusted gross income more than:
Age on 12/31/07 |
No dependents |
1 dependent |
2 or more dependents |
|
|---|---|---|---|---|
| Single or head of household | Under 65 |
11,310 |
21,110 |
28,460 |
65 or older |
16,010 |
23,360 |
29,240 |
Age on 12/31/07 |
No dependents |
1 dependent |
2 or more dependents |
|
|---|---|---|---|---|
| Married Or | Under 65 (both spouses) |
22,620 |
32,420 |
39,770 |
| Married Filing | 65 or older (one spouse) |
27,320 |
34,670 |
40,550 |
| Separate | 65 or older (both spouses) |
32,020 |
39,370 |
45,250 |
Age on 12/31/07 |
No dependents |
1 dependent |
2 or more dependents |
|
|---|---|---|---|---|
| Qualifying widow(er) | Under 65 |
N/A |
21,110 |
28,460 |
65 or older |
N/A |
23,360 |
29,240 |