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2006 California Tax Rates and Exemptions

The rate of inflation in California, for the period from July 1, 2005 through June 30, 2006, was 4.8%. The 2006 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%
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%

Exemption credits

Filing Status/Qualification Exemption amount
Married/RDP filing jointly and qualifying widow(er) $182
Single, married/RDP filing separately, and head of household $91
Dependent $285
Blind $91
Age 65 or older $91

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 $150,743
Married/RDP filing separately $6 $1,250 $150,743
Head of household $6 $2,500 $226,119
Married/RDP filing jointly $12 $2,500 $301,491
Qualifying widow(er) $12 $2,500 $301,491

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 $3,410
Married/RDP filing jointly, head of household and qualifying widow(er) $6,820
The minimum standard deduction for dependents $850

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 $150,743
Head of household $226,119
Married/RDP filing jointly and qualifying widow(er) $301,491

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 $32,272 or less.
    • The credit is $60.
  • Married/RDP filing jointly, head of household, and qualifying widow(er) with a California AGI of $64,544 or less.
    • The credit is $120.

Miscellaneous credits

  • Qualified senior head of household credit
    • 2% of California taxable income
    • Maximum California AGI of $58,963
    • Maximum credit of $1,111
  • Joint custody head of household credit and dependent parent credit are each:
    • 30% of net tax
    • Maximum credit of $363

AMT exemption

Filing status Amount
Married/RDP filing jointly and qualifying widow(er) $73,916
Single and head of household $55,437
Married/RDP filing separately, estates, and trusts $36,956

AMT exemption phaseout

Filing status Amount
Married/RDP filing jointly and qualifying widow(er) $277,183
Single and head of household $207,888
Married/RDP filing separately, estates, and trusts $138,591

FTB cost recovery fees

Fee type Fee
Bank and corporation filing enforcement fee $202
Bank and corporation collection fee $168
Personal income tax filing enforcement fee $125
Personal income tax collection fee $126

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.

2006 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 $6,622 $0.00 plus 1% $0
$6,622 $15,698 $66.22 plus 2% $6,622
$15,698 $24,776 $247.74 plus 4% $15,698
$24,776 $34,394 $610.86 plus 6% $24,776
$34,394 $43,467 $1,187.94 plus 8% $34,394
$43,467 And over $1,913.78 plus 9.3% $43,467

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 $13,244 $0.00 plus 1% $0
$13,244 $31,396 $132.44 plus 2% $13,244
$31,396 $49,552 $495.48 plus 4% $31,396
$49,552 $68,788 $1,221.72 plus 6% $49,552
$68,788 $86,934 $2,375.88 plus 8% $68,788
$86,934 And over $3,827.56 plus 9.3% $86,934

Schedule Z — Unmarried head of household

If the taxable income is

Over But not over Tax is Of amount over
$0 $13,251 $0.00 plus 1% $0
$13,251 $31,397 $132.51 plus 2% $13,251
$31,397 $40,473 $495.43 plus 4% $31,397
$40,473 $50,090 $858.47 plus 6% $40,473
$50,090 $59,166 $1,435.49 plus 8% $50,090
$59,166 And over $2,161.57 plus 9.3% $59,166

Individual Filing Requirements

Filing Status Age as of December 31, 2007* 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 13,713 23,213 30,338 10,970 20,470 27,595
65 or older 18,263 25,388 31,088 15,520 22,645 28,345
Married/RDP filing jointly or separately Under 65
(both spouses/RDPs)
27,426 36,926 44,051 21,940 31,440 38,565
65 or older
(one spouse)
31,976 39,101 44,801 26,490 33,615 39,315
65 or older
(both spouses/RDPs)
36,526 43,651 49,351 31,040 38,165 43,865
Qualifying widow(er) Under 65 N/A 23,213 30,338 N/A 20,470 27,595
65 or older N/A 25,388 31,088 N/A 22,645 28,345
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, 2007, you are considered to be age 65 at the end of 2006.