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2007 California Tax Rates and Exemptions

The rate of inflation in California, for the period from July 1, 2006 through June 30, 2007, was 3.1%. The 2007 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) $188
Single, married/RDP filing separately, and head of household $94
Dependent $294
Blind $94
Age 65 or older $94

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 $155,416
Married/RDP filing separately $6 $1,250 $155,416
Head of household $6 $2,500 $233,129
Married/RDP filing jointly $12 $2,500 $310,837
Qualifying widow(er) $12 $2,500 $310,837

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 $3,516
Married/RDP filing jointly, head of household and qualifying widow(er) $7,032
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 $155,416
Head of household $233,129
Married/RDP filing jointly and qualifying widow(er) $310,837

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 $33,272 or less.
    • The credit is $60.
  • Married/RDP filing jointly, head of household, and qualifying widow(er) with a California AGI of $66,544 or less.
    • The credit is $120.

Miscellaneous credits

  • Qualified senior head of household credit
    • 2% of California taxable income
    • Maximum California AGI of $60,791
    • Maximum credit of $1,146
  • Joint custody head of household credit/dependent parent credit
    • 30% of net tax
    • Maximum credit of $374

AMT exemption

Filing status Amount
Married/RDP filing jointly and qualifying widow(er) $76,207
Single and head of household $57,156
Married/RDP filing separately, estates, and trusts $38,102

AMT exemption phaseout

Filing status Amount
Married/RDP filing jointly and qualifying widow(er) $285,776
Single and head of household $214,333
Married/RDP filing separately, estates, and trusts $142,887

FTB cost recovery fees

Fee type Fee
Bank and corporation filing enforcement fee $305
Bank and corporation collection fee $234
Personal income tax filing enforcement fee $122
Personal income tax collection fee $155

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.

2007 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 $6,827 $0.00 Plus 1% $0
$6,827 $16,185 $68.27 Plus 2% $6,827
$16,185 $25,544 $255.43 Plus 4% $16,185
$25,544 $35,460 $629.79 Plus 6% $25,544
$35,460 $44,814 $1,224.75 Plus 8% $35,460
$44,814 And over $1,973.07 Plus 9.3% $44,814

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 $13,654 $0.00 Plus 1% $0
$13,654 $32,370 $136.54 Plus 2% $13,654
$32,370 $51,088 $510.86 Plus 4% $32,370
$51,088 $70,920 $1,259.58 Plus 6% $51,088
$70,920 $89,628 $2,449.50 Plus 8% $70,920
$89,628 And over $3,946.14 Plus 9.3% $89,628

Schedule Z — Unmarried head of household

If the taxable income is
Over But not over Tax is Of amount over
$0 $13,662 $0.00 Plus 1% $0
$13,662 $32,370 $136.62 Plus 2% $13,662
$32,370 $41,728 $510.78 Plus 4% $32,370
$41,728 $51,643 $885.10 Plus 6% $41,728
$51,643 $61,000 $1,480.00 Plus 8% $51,643
$61,000 And over $2,228.56 Plus 9.3% $61,000

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, 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 14,138 23,938 31,288 11,310 21,110 28,460
65 or older 18,838 26,188 32,068 16,010 23,360 29,240
Married/RDP filing jointly or separately Under 65 (both spouses/RDPs) 28,276 38,076 45,426 22,620 32,420 39,770
65 or older (one spouse) 32,976 40,326 46,206 27,320 34,670 40,550
65 or older
(both spouses/RDPs)
37,676 45,026 50,906 32,020 39,370 45,250
Qualifying widow(er) Under 65 N/A 23,938 31,288 N/A 21,110 28,460
65 or older 26,188 32,068 23,360 29,240
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, 2008, you are considered to be age 65 at the end of 2007.