Income tax for nonresidents Nonresident withholding

If you have taxable 'non-wage' income you may need to prepay tax if you receive a non-wage payment, such as:

  • Trust distributions
  • Partnership and LLC distributions
  • Rents
  • Royalties
  • Gambling winnings

Your payer must take 7% from your CA income that exceeds $1,500 in a calendar year. This is called nonresident withholding.

When you file your tax return, you can claim your withholding.

Get a withholding reduction or waiver

To apply for a waiver or reduction, you'll need:

  • A taxpayer identification number, like SSN, FEIN, or CA Corp Number
  • Income details, including type and amounts

Waiver

You may qualify for a non-wage withholding waiver if:

  • You made an estimate tax payment for this year
  • Have filed returns for the two most current taxable years when you were required to file

See Instructions for Form 588 for full list of qualifications.

To apply, submit Nonresident Withholding Waiver Request (Form 588):

Online
Through MyFTB.
By mail
Withholding Services and Compliance MS F182
Franchise Tax Board
PO Box 942867
Sacramento, CA 94267-0651
By fax
(916) 845-9512

You may qualify for an exemption. Complete and certify Form 590 and give to your payer.

Reduction

To request a reduction based on your operating costs, submit Nonresident Reduced Withholding Request (Form 589). Review the Instructions for Form 589 for more information.

Online
Nonresident Reduced Withholding Request (Form 589) - online submission
By mail
Withholding Services and Compliance MS F182
Franchise Tax Board
PO Box 942867
Sacramento, CA 94267-0651

Before you apply

You must enter personal details that match your payer’s records.

If someone applies on your behalf, they must enter their contact details in the requestor field.

After you apply

It takes us about:

  • 2 weeks to process if you applied online
  • 1 month if you applied by mail

Allow 1 week to receive confirmation after we process your request.

We may request to view any relevant documents, like receipts or contracts to verify payment amounts.