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2010 State Income Tax Rate Schedules Adjusted

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Denise.Azimi@ftb.ca.gov

Public Affairs Office
Denise Azimi

For Immediate Release

08.16.2010

Sacramento – The Franchise Tax Board (FTB) today released the 2010 state tax brackets. Brackets are “indexed” each year by adjusting them to reflect changes in the California Consumer Price Index (CPI).

Filing requirement thresholds, the standard deduction, and certain credits were adjusted along with income tax brackets based on the inflation rate of 0.9 percent, as measured by the California CPI for all urban consumers from June 2009 to June 2010. Last year California had a deflation rate that measured 1.5 percent.

Below are some of the changes to various items:

2010 Amounts

2009 Amounts

Standard deduction for single or “married filing separate” taxpayers

$3,670

$3,637

Standard deduction for joint, surviving spouse, or head of household taxpayers

$7,340

$7,274

Personal exemption credit amount for single, separate, and head of household taxpayers

$99

$98

Personal exemption credit amount for joint filers or surviving spouses

$198

$196

Renter’s Credit is available for single filers with adjusted gross incomes

$34,722 or less

$34,412 or less

Renter’s Credit is available for joint filers with adjusted gross incomes

$69,444 or less

$68,824 or less

A new tax law sets the dependent exemption credit for tax years 2009 and 2010 to the indexed personal exemption credit of $99.

In addition, FTB provides minimum filing requirement thresholds to ensure that most people who will not owe taxes are not required to file a tax return. FTB adjusts these tables each year to include the added senior exemption and the dependent exemption credits. For example, most single people under 65 years old with no dependents would not need to file a state return until they have adjusted gross income of $11,803 or more compared to last year’s threshold of $11,698 or more.

Other tax credits affected by indexing include the Joint Custody Head of Household Credit, Dependent Parent Credit, and Qualified Senior Head of Household Credit.

More information about the 2010 tax rates and exemptions and other tax matters is available at ftb.ca.gov.

For more information on other taxes and fees in California, visit: taxes.ca.gov.

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