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2008 California Tax Rates and Exemptions

The rate of inflation in California, for the period from July 1, 2007 through June 30, 2008, was 5.0%. The 2008 personal income tax brackets are indexed by this amount.

Corporate tax rates

Entity type Tax rate
Corporations other than banks and financials 8.84%
Banks and financials 10.84%
Alternative Minimum Tax (AMT) rate 6.65%
S corporation rate 1.5%
S corporation bank and financial rate 3.5%

Individual tax rates

  • The maximum rate for individuals is 9.3%
  • The AMT rate for individuals is 7%
  • The Mental Health Services Tax Rate is 1% for taxable income in excess of $1,000,000.

Exemption credits

Filing Status/Qualification Exemption amount
Married/Registered Domestic Partner (RDP) filing jointly and qualifying widow(er) $198
Single, married/RDP filing separately, and head of household $99
Dependent $309
Blind $99
Age 65 or older $99

Phaseout of exemption credits

Higher-income taxpayers' exemption credits are reduced as follows:

Filing status Reduce each credit by: For each: Federal AGI exceeds:
Single $6 $2,500 $163,187
Married/RDP filing separately $6 $1,250 $163,187
Head of household $6 $2,500 $244,785
Married/RDP filing jointly $12 $2,500 $326,379
Qualifying widow(er) $12 $2,500 $326,379

When applying the phaseout amount, apply the $6/$12 amount to each exemption credit, but do not reduce the credit below zero. If a personal exemption credit is less than the phaseout amount, do not apply the excess against a dependent exemption credit.

Standard deductions

The standard deduction amounts for:

Filing status Deduction amount
Single and married/RDP filing separately $3,692
Married/RDP filing jointly, head of household and qualifying widow(er) $7,384
The minimum standard deduction for dependents $900

Reduction in itemized deductions

Itemized deductions must be reduced by the lesser of 6% of the excess of the taxpayer's federal AGI over the threshold amount or 80% of the amount of itemized deductions otherwise allowed for the taxable year.

Filing status AGI threshold
Single and married/RDP filing separately $163,187
Head of household $244,785
Married/RDP filing jointly and qualifying widow(er) $326,379

Nonrefundable Renter's credit

This nonrefundable, non-carryover credit for renters is available for:

  • Single and married/RDP filing separately with a California AGI of $34,936 or less.
    • The credit is $60.
  • Married/RDP filing jointly, head of household, and qualifying widow(er) with a California AGI of $69,872 or less.
    • The credit is $120.

Miscellaneous credits

  • Qualified senior head of household credit
    • 2% of California taxable income
    • Maximum California AGI of $63,831
    • Maximum credit of $1,203
  • Joint custody head of household credit/dependent parent credit
    • 30% of net tax
    • Maximum credit of $393

AMT exemption

Filing status Amount
Married/RDP filing jointly and qualifying widow(er) $80,017
Single and head of household $60,014
Married/RDP filing separately, estates, and trusts $40,007

AMT exemption phaseout

Filing status Amount
Married/RDP filing jointly and qualifying widow(er) $300,065
Single and head of household $225,050
Married/RDP filing separately, estates, and trusts $150,031

FTB cost recovery fees

Fee type Fee
Bank and corporation filing enforcement fee $203
Bank and corporation collection fee $352
Personal income tax filing enforcement fee $119
Personal income tax collection fee $187

The personal income tax fees apply to individuals and partnerships, as well as limited liability companies that are classified as partnerships. The bank and corporation fees apply to banks and corporations, as well as limited liability companies that are classified as corporations. Interest does not accrue on these cost recovery fees.

2008 California Tax Rate Schedules

Schedule X — Single, married/RDP filing separately

If the taxable income is
Over But not over Tax is Of amount over
$0 $7,168 $0.00 Plus 1% $0
$7,168 $16,994 $71.68 Plus 2% $7,168
$16,994 $26,821 $268.20 Plus 4% $16,994
$26,821 $37,233 $661.28 Plus 6% $26,821
$37,233 $47,055 $1,286.00 Plus 8% $37,233
$47,055 And over $2,071.76 Plus 9.3% $47,055

Schedule Y — Married/RDP filing jointly and qualifying widow(er) with dependent child

If the taxable income is
Over But not over Tax is Of amount over
$0 $14,336 $0.00 Plus 1% $0
$14,336 $33,988 $143.36 Plus 2% $14,336
$33,988 $53,642 $536.40 Plus 4% $33,988
$53,642 $74,466 $1,322.56 Plus 6% $53,642
$74,466 $94,110 $2,572.00 Plus 8% $74,466
$94,110 And over $4,143.52 Plus 9.3% $94,110

Schedule Z — Unmarried head of household

If the taxable income is
Over But not over Tax is Of amount over
$0 $14,345 $0.00 Plus 1% $0
$14,345 $33,989 $143.45 Plus 2% $14,345
$33,989 $43,814 $536.33 Plus 4% $33,989
$43,814 $54,225 $929.33 Plus 6% $43,814
$54,225 $64,050 $1,553.99 Plus 8% $54,225
$64,050 And over $2,339.99 Plus 9.3% $64,050

Individual Filing Requirements

If your gross income or adjusted gross income is more than the amount shown in the chart below for your filing status, age, and number of dependents, then you have a filing requirement.

Filing Status Age as of December 31, 2008* California Gross Income California Adjusted Gross Income
Dependents Dependents
0 1 2 or more 0 1 2 or more
Single or head of household Under 65 14,845 25,145 32,870 11,876 22,176 29,901
65 or older 19,795 27,520 33,700 16,826 24,551 30,731
Married/RDP filing jointly or separately Under 65 (both spouses/RDPs) 29,690 39,990 47,715 23,752 34,052 41,777
65 or older (one spouse) 34,640 42,365 48,545 28,702 36,427 42,607
65 or older
(both spouses/RDPs)
39,590 47,315 53,495 33,652 41,377 47,557
Qualifying widow(er) Under 65 N/A 25,145 32,870 N/A 22,176 29,901
65 or older 27,520 33,700 24,551 30,731 N/A N/A
Dependent of another person (Any filing status) Under 65 More than your standard deduction
65 or older More than your standard deduction

* If you turn 65 on January 1, 2009, you are considered to be age 65 at the end of 2008.