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2018 California Tax Rates and Exemptions


Rate of inflation

The rate of inflation in California, for the period from July 1, 2017, through June 30, 2018, was 3.9%. The 2018 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 12.3%
  • 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 or qualifying widow(er) $236
Single, married/RDP filing separately, or head of household $118
Dependent $367
Blind $118
Age 65 or older $118
Estates* $10
Trusts* $1

* Estates and Trusts exemption credits are considered "Special credits allowed" under R&TC §17733.

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 $194,504
Married/RDP filing separately $6 $1,250 $194,504
Head of household $6 $2,500 $291,760
Married/RDP filing jointly $12 $2,500 $389,013
Qualifying widow(er) $12 $2,500 $389,013

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 or married/RDP filing separately $4,401
Married/RDP filing jointly, head of household, or qualifying widow(er) $8,802
The minimum standard deduction for dependents $1,050

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 or married/RDP filing separately $194,504
Head of household $291,760
Married/RDP filing jointly or qualifying widow(er) $389,013

Earned Income Tax Credit

The California earned income tax credit is available to California households with federal adjusted gross income (AGI) of:

  • Less than $16,751 if there are no qualifying children.
  • Less than $24,951 if there are one or more qualifying children.

The maximum amount of investment income to remain eligible for the credit is $3,699.

Nonrefundable Renter's credit

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

  • Single or married/RDP filing separately with a California AGI of $41,641 or less.
    • The credit is $60.
  • Married/RDP filing jointly, head of household, or qualifying widow(er) with a California AGI of $83,282 or less.
    • The credit is $120.

Miscellaneous credits

  • Qualified senior head of household credit
    • 2% of California taxable income
    • Maximum California AGI of $76,082
    • Maximum credit of $1,434
  • Joint custody head of household credit/dependent parent credit
    • 30% of net tax
    • Maximum credit of $469

AMT exemption

Filing status Amount
Married/RDP filing jointly or qualifying widow(er) $95,373
Single or head of household $71,531
Married/RDP filing separately, estates, or trusts $47,685

AMT exemption phaseout

Filing status Amount
Married/RDP filing jointly or qualifying widow(er) $357,650
Single or head of household $268,237
Married/RDP filing separately, estates, or trusts $178,822

FTB cost recovery fees

Fee type Fee
Bank and corporation filing enforcement fee $100
Bank and corporation collection fee $365
Personal income tax filing enforcement fee $81
Personal income tax collection fee $266

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.

2018 California Tax Rate Schedules

Schedule X — Single or married/RDP filing separately

Taxable income over But not over Tax is
$0 $8,544 $0.00 + 1.00% of amount over $0
$8,544 $20,255 $85.44 + 2.00% of amount over $8,544
$20,255 $31,969 $319.66 + 4.00% of amount over $20,255
$31,969 $44,377 $788.22 + 6.00% of amount over $31,969
$44,377 $56,085 $1,532.70 + 8.00% of amount over $44,377
$56,085 $286,492 $2,469.34 + 9.30% of amount over $56,085
$286,492 $343,788 $23,897.19 + 10.30% of amount over $286,492
$343,788 $572,980 $29,798.68 + 11.30% of amount over $343,788
$572,980 AND OVER $55,697.38 + 12.30% of amount over $572,980

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

Taxable income over But not over Tax is
$0 $17,088 $0.00 + 1.00% of amount over $0
$17,088 $40,510 $170.88 + 2.00% of amount over $17,088
$40,510 $63,938 $639.32 + 4.00% of amount over $40,510
$63,938 $88,754 $1,576.44 + 6.00% of amount over $63,938
$88,754 $112,170 $3,065.40 + 8.00% of amount over $88,754
$112,170 $572,984 $4,938.68 + 9.30% of amount over $112,170
$572,984 $687,576 $47,794.38 + 10.30% of amount over $572,984
$687,567 $1,145,960 $59,597.36 + 11.30% of amount over $687,576
$1,145,960 AND OVER $111,394.75 + 12.30% of amount over $1,145,960

Schedule Z — Head of household

Taxable income over But not over Tax is
$0 $17,099 $0.00 + 1.00% of amount over $0
$17,099 $40,512 $170.99 + 2.00% of amount over $17,088
$40,512 $52,224 $639.25 + 4.00% of amount over $40,510
$52,224 $64,632 $1,107.73 + 6.00% of amount over $52,224
$64,632 $76,343 $1,852.21 + 8.00% of amount over $64,632
$76,343 $389,627 $2,789.09 + 9.30% of amount over $76,343
$389,627 $467,553 $31,924.50 + 10.30% of amount over $389,627
$467,553 $779,253 $39,950.88 + 11.30% of amount over $467,553
$779,253 AND OVER $75,172.98 + 12.30% of amount over $779,253

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, 2018* 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 $17,693 $29,926 $39,101 $14,154 $26,387 $35,562
65 or older $23,593 $32,768 $40,108 $20,054 $29,229 $36,569
Married/RDP filing jointly or separately Under 65 (both spouses/RDPs) $35,388 $47,621 $56,796 $28,312 $40,545 $49,720
65 or older (one spouse) $41,288 $50,463 $57,803 $34,212 $43,387 $50,727
65 or older
(both spouses/RDPs)
$47,188 $56,363 $63,703 $40,112 $49,287 $56,627
Qualifying widow(er) Under 65 N/A $29,926 $39,101 N/A $26,387 $35,562
65 or older N/A $32,768 $40,108 N/A $29,229 $36,569
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, 2018, you are considered to be age 65 at the end of 2017.

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Last Updated: 11/20/2018

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