Tax News
2012 State Income Tax Rate Schedules Adjusted

We released the 2012 state tax brackets. Brackets are “indexed” each year by adjusting them to reflect changes in the California Consumer Price Index (CPI).

Filing requirement thresholds, the standard deduction, and certain credits were adjusted along with income tax brackets based on the inflation rate of 1.9 percent, as measured by the California CPI for all urban consumers from June 2011 to June 2012. Last year, California’s inflation rate measured 2.7 percent.

Below are some of the changes to various items:

 

2012 Amounts

2011 Amounts

Standard deduction for single or married filing separate taxpayers

$3,841

$3,769

Standard deduction for joint, surviving spouse, or head of household taxpayers

$7,682

$7,538

Personal exemption credit amount for single, separate, and head of household taxpayers

$104

$102

Personal exemption credit amount for joint filers or surviving spouses

$208

$204

Dependent exemption credit

$321

$315

Renter’s Credit is available for single filers with adjusted gross incomes

$36,337 or less

$35,659 or less

Renter’s Credit is available for joint filers with adjusted gross incomes

$72,674 or less

$71,318 or less

In addition, we provide minimum filing requirement thresholds to ensure that most people who will not have a tax liability are not required to file a state tax return. We adjust these tables each year to include the added senior exemption and the dependent exemption credits.

Other tax credits affected by indexing include the Joint Custody Head of Household Credit, Dependent Parent Credit, and Qualified Senior Head of Household Credit.

More information about the 2012 tax rates and exemptions and other tax amounts will be posted on our website at ftb.ca.gov sometime this month.

Back to September 2012 Tax News