Standard deductions, exemption amounts, tax rates, and doing business thresholds updated for 2019 December 2019 Tax News

Annually, we update for inflation the California:

  • Standard deduction
  • Personal/senior exemption amounts
  • Tax rate schedules

The inflation rate, as measured by the CCPI for all urban consumers from June 2018 to June 2019, was 3.1%.

Standard deductions

Filing status Standard deduction for tax year 2019
Single or separate taxpayers Increase from $4,401 to $4,537
Joint, surviving spouse, head of household Increase from $8,802 to $9,074

Exemptions

Filing status Personal and senior exemption credit for tax year 2019
Single or separate taxpayers Increase from $118 to $122
Joint, surviving spouse Increase from $236 to $244
Dependent Increase from $367 per dependent claimed in 2018 year to $378 each

2019 Tax Rates Table

Schedule X
Use if your filing status is Single or Married/RDP Filing Separately

If the amount on Form 540, line 19 is
Over - But not over - Enter on Form 540, line 31
$0 $8,809 $0.00 + 1.00% of the amount over $0
8,809 20,883 88.09 + 2.00% of the amount over 8,809
20,883 32,960 329.57 + 4.00% of the amount over 20,883
32,960 45,753 812.65 + 6.00% of the amount over 32,960
45,753 57,824 1,580.23 + 8.00% of the amount over 45,753
57,824 295,373 2,545.91 + 9.30% of the amount over 57,824
295,373 354,445 24,637.97 + 10.30% of the amount over 295,373
354,445 590,742 30,722.39 + 11.30% of the amount over 354,445
590,742 AND OVER 57,423.95 + 12.30% of the amount over 590,742

Schedule Y
Use if your filing status is Married/RDP Filing Jointly or Qualifying Widow(er)

If the amount on Form 540, line 19 is
Over - But not over - Enter on Form 540, line 31
$0 17,618 $0.00 + 1.00% of the amount over $0
17,618 41,766 176.18 + 2.00% of the amount over 17,618
41,766 65,920 659.14 + 4.00% of the amount over 41,766
65,920 91,506 1,625.30 + 6.00% of the amount over 65,920
91,506 115,648 3,160.46 + 8.00% of the amount over 91,506
115,648 590,746 5,091.82 + 9.30% of the amount over 115,648
590,746 708,890 49,275.93 + 10.30% of the amount over 590,746
708,890 1,181,484 61,444.76 + 11.30% of the amount over 708,890
1,181,484 AND OVER 114,847.88 + 12.30% of the amount over 1,181,484

Schedule Z
Use if your filing status is Head of Household


If the amount on Form 540, line 19 is
Over - But not over - Enter on Form 540, line 31
$0 17,629 $0.00 + 1.00% of the amount over $0
17,629 41,768 176.29 + 2.00% of the amount over 17,629
41,768 53,843 659.07 + 4.00% of the amount over 41,768
53,843 66,636 1,142.07 + 6.00% of the amount over 53,843
66,636 78,710 1,909.65 + 8.00% of the amount over 66,636
78,710 401,705 2,875.57 + 9.30% of the amount over 78,710
401,705 482,047 32,914.11 + 10.30% of the amount over 401,705
482,047 803,410 41,189.34 + 11.30% of the amount over 482,047
803,410 AND OVER 77,503.36 + 12.30% of the amount over 803,410

Doing business in California threshold amounts

"Doing business" means actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. When determining if a taxpayer is doing business we look to their:

  • Sales
  • Property
  • Payroll

For taxable years beginning on or after January 1, 2011, a taxpayer is also doing business in this state for a taxable year if any of the following conditions has been satisfied:

  • The taxpayer is organized or commercially domiciled in this state.
  • Sales of the taxpayer in California exceed the lesser of $500,000 or 25% of the taxpayer's total sales.
  • The real property and tangible personal property of the taxpayer in this state exceed the lesser of $50,000 or 25%of the taxpayer's total real property and tangible personal property.
  • The amount paid in this state by the taxpayer for compensation exceeds the lesser $50,000 or 25% of the total compensation paid by the taxpayer.

The indexed threshold values for the 2019 tax year are as follows:

  • Sales: $601,967
  • Property: $60,197
  • Payroll: $60,197

Based on the California Consumer Price Index (CCPI) as prescribed in the revenue and taxation code.