California · the numbers
California figures at a glance, 2026
The California numbers for the 2026 return in one place: the three rate schedules, the standard deduction, the exemption credits, the refundable credits and their limits, the thresholds that trigger estimated payments and electronic payment, the dates, and a short list of what changed from 2025. For anyone who files here, and for anyone checking a preparer’s work.
By Charles Trautman, EA, editor
Need to Know Tax · written from California Franchise Tax Board sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by a California practitioner
California has more moving numbers than most states, because almost everything on Form 540 is indexed to the California CPI. For 2026 the adjustment was 3.4%. The Franchise Tax Board published the 2026 rate schedules, standard deduction, exemption credits and renter’s credit limits in October 2026; the exemption-credit phase-out thresholds, filing thresholds, AMT exemption and the CalEITC and Young Child Tax Credit maximums come in late December and are marked “to come” here, with the 2025 figure shown for scale. The rates did not change. Neither did the lines fixed in statute: the $1,000,000 surtax threshold, the $20,000 military retirement exclusion, the $500 estimated-tax trigger and the $20,000 and $80,000 electronic-payment triggers.
The rate schedules
| Over | But not over | Tax |
|---|---|---|
| $0 | $11,456 | 1% of taxable income |
| $11,456 | $27,157 | $114.56 plus 2% of the excess over $11,456 |
| $27,157 | $42,861 | $428.58 plus 4% of the excess over $27,157 |
| $42,861 | $59,498 | $1,056.74 plus 6% of the excess over $42,861 |
| $59,498 | $75,197 | $2,054.96 plus 8% of the excess over $59,498 |
| $75,197 | $384,109 | $3,310.88 plus 9.3% of the excess over $75,197 |
| $384,109 | $460,927 | $32,039.70 plus 10.3% of the excess over $384,109 |
| $460,927 | $768,213 | $39,951.95 plus 11.3% of the excess over $460,927 |
| $768,213 | $74,675.27 plus 12.3% of the excess over $768,213 |
| Over | But not over | Tax |
|---|---|---|
| $0 | $22,912 | 1% of taxable income |
| $22,912 | $54,314 | $229.12 plus 2% of the excess over $22,912 |
| $54,314 | $85,722 | $857.16 plus 4% of the excess over $54,314 |
| $85,722 | $118,996 | $2,113.48 plus 6% of the excess over $85,722 |
| $118,996 | $150,394 | $4,109.92 plus 8% of the excess over $118,996 |
| $150,394 | $768,218 | $6,621.76 plus 9.3% of the excess over $150,394 |
| $768,218 | $921,854 | $64,079.39 plus 10.3% of the excess over $768,218 |
| $921,854 | $1,536,426 | $79,903.90 plus 11.3% of the excess over $921,854 |
| $1,536,426 | $149,350.54 plus 12.3% of the excess over $1,536,426 |
| Over | But not over | Tax |
|---|---|---|
| $0 | $22,927 | 1% of taxable income |
| $22,927 | $54,316 | $229.27 plus 2% of the excess over $22,927 |
| $54,316 | $70,018 | $857.05 plus 4% of the excess over $54,316 |
| $70,018 | $86,654 | $1,485.13 plus 6% of the excess over $70,018 |
| $86,654 | $102,356 | $2,483.29 plus 8% of the excess over $86,654 |
| $102,356 | $522,385 | $3,739.45 plus 9.3% of the excess over $102,356 |
| $522,385 | $626,864 | $42,802.15 plus 10.3% of the excess over $522,385 |
| $626,864 | $1,044,771 | $53,563.49 plus 11.3% of the excess over $626,864 |
| $1,044,771 | $100,786.98 plus 12.3% of the excess over $1,044,771 |
All three schedules from FTB Tax News, October 2026, computed on Form 540 line 19 taxable income. Add the Behavioral Health Services Tax, 1% of taxable income over $1,000,000, on line 62 for every filing status; the top combined rate is 13.3%. Joint brackets are double the single ones; the $1,000,000 line is not doubled. Filers with taxable income under $100,000 use the Department’s tax table, which produces the same result.
Deductions and exemption credits
| Item | 2025 | 2026 | Note |
|---|---|---|---|
| Starting point | Federal AGI | Federal AGI | Form 540 line 13, then Schedule CA (540) adjustments |
| Standard deduction, single or MFS | $5,706 | $5,900 | You may itemize for California while taking the federal standard deduction |
| Standard deduction, joint, HOH, surviving spouse | $11,412 | $11,800 | Same figure for all three statuses |
| Personal exemption credit, single, MFS, HOH | $153 | $158 | A credit against tax, not a deduction |
| Personal exemption credit, joint or surviving spouse | $306 | $316 | Two taxpayers |
| Senior exemption credit, each person 65 or older | $153 | $158 | Equal to the personal exemption credit |
| Blind exemption credit, each | $153 | $158 | Same amount as the personal credit |
| Dependent exemption credit, each | $475 | $491 | Nonrefundable; no separate child tax credit |
| Exemption credits begin to phase out, federal AGI, single / joint / HOH | $252,203 / $504,411 / $378,310 | to come | Reduced $6 per $2,500 of AGI over the line ($12 joint) |
| Itemized deductions reduced above the same thresholds | 6% of excess AGI, up to 80% | to come | Schedule CA (540) Part II |
| State income tax, SDI, general sales tax as itemized deductions | Not allowed | Not allowed | Property tax allowed in full; no SALT cap |
| Mortgage interest, acquisition debt limit | $1,000,000 plus $100,000 home equity | $1,000,000 plus $100,000 home equity | Federal limit is $750,000; difference adjusted on Schedule CA |
| HSA deduction | None | None | Contributions added back; account earnings taxable |
Credits
| Credit | Figure | Refundable? | Limit |
|---|---|---|---|
| CalEITC (Form FTB 3514) | Up to $302 no children, $2,016 one, $3,339 two, $3,756 three or more (2025; 2026 to come) | Yes | Earned income $32,900 or less (2025); investment income $3,400 or less; ITIN filers qualify; age 18+ with no upper limit |
| Young Child Tax Credit (FTB 3514) | Up to $1,189 (2025; 2026 to come) | Yes | CalEITC-eligible household with a child under 6 at year end |
| Foster Youth Tax Credit (FTB 3514) | Up to $1,189 per qualifying person, $2,378 for a couple (2025; 2026 to come) | Yes | Former foster youth age 18 to 25 |
| Child and Dependent Care Expenses Credit (FTB 3506) | 50% of the recomputed federal credit at AGI of $40,000 or less, 43% to $70,000, 34% to $100,000 | No | Nothing above $100,000 federal AGI |
| Renter’s credit | $60 single or MFS; $120 joint, HOH, surviving spouse (or $250 and $500 if the budget funds the larger credit; check the 2026 instructions) | No | California AGI $55,830 or less single, $111,660 or less joint; rented a principal residence in California at least six months |
| Senior head of household credit | 2% of taxable income, maximum $1,860 (2025; 2026 to come) | No | AGI $98,652 or less (2025); 65 or older; qualified as HOH in one of the two prior years for a person who has died |
| Joint custody head of household credit; dependent parent credit | 30% of net tax, each capped at $610 (2025; 2026 to come) | No | Cannot be combined with each other |
| Other state tax credit (Schedule S) | Lesser of the other state’s tax or the California tax on the same income | No | Net income taxes only, not city taxes; reverse-credit rule for AZ, OR, VA and Guam residents |
| Pass-through entity elective tax credit | Owner’s share of the 9.3% entity tax | No, carries forward five years | Extended for taxable years beginning before January 1, 2031 |
CalEITC, YCTC and FYTC figures from the Department’s eligibility page for tax year 2025; the 2026 maximums and earned-income limit are indexed and will be posted with the late-December figures. The $3,400 investment-income limit was fixed by SB 1435 and no longer follows the federal number.
Exclusions and additions worth a line
| Item | 2026 | Note |
|---|---|---|
| Social Security and railroad retirement | 100% excluded | Any age, any income |
| Unemployment and Paid Family Leave benefits | 100% excluded | Taxed federally, not by California |
| Pensions, IRAs, 401(k)s, Roth conversions | 100% taxed | No age break, no exclusion |
| Military retirement pay exclusion | Up to $20,000 | Federal AGI $125,000 or less ($250,000 joint); 2025 through 2029; not indexed |
| DoD Survivor Benefit Plan exclusion | Up to $20,000 | Same AGI test, separate from the retirement pay exclusion |
| Federal tips, overtime, senior and car-loan deductions | $0 in California | Below the AGI line; never reach Form 540 |
| Federal SALT cap | Not applied | Amount over $40,000 added back on Part II line 5e, column C; property tax then deductible in full |
| Early distribution penalty | 2.5% | Form FTB 3805P; federal is 10% |
| Section 179 expensing limit | $25,000, phase-out at $200,000 | No bonus depreciation; FTB 3885A |
| Health coverage penalty (FTB 3853) | $950 per adult, $475 per child, $2,850 household maximum (2025; 2026 to come) | Or 2.5% of income over the filing threshold, if more; capped at the average bronze premium |
Thresholds and payment rules
| Rule | Figure | Note |
|---|---|---|
| Must file, gross income, single or HOH under 65, no dependents | $22,941 (2025; 2026 to come) | Or California AGI over $18,353; higher with dependents or age 65 |
| Must file, gross income, joint, both under 65, no dependents | $45,887 (2025; 2026 to come) | Or California AGI over $36,711 |
| Estimated payments required when tax after withholding is | $500 or more ($250 MFS) | Form 540-ES; 30% / 40% / 0% / 30% |
| Safe harbor | 90% of 2026 tax or 100% of 2025 tax | 110% of 2025 tax if 2025 California AGI over $150,000 ($75,000 MFS) |
| No prior-year safe harbor at all | 2026 California AGI $1,000,000 or more ($500,000 MFS) | Must pay on 2026 tax |
| Mandatory electronic payment begins | One payment over $20,000, or total tax over $80,000 | All later payments electronic; 1% penalty otherwise |
| Late payment penalty | 5% plus 0.5% per month, up to 40 months | Presumed reasonable cause if 90% paid by April 15 |
| Late filing penalty | 5% per month, maximum 25% | Minimum: lesser of $135 or 100% of tax if the balance is $540 or less |
| Interest on underpayments | 7% | January 1 to June 30, 2027, compounded daily |
| SDI employee rate | 1.3% | No wage ceiling; 1.2% in 2025; not deductible |
| Real estate withholding on sales | 3 1/3% of the sales price | Form 593, unless the seller certifies an exemption |
Dates
| Date | What |
|---|---|
| January 15, 2027 | Fourth 2026 estimated payment (30%); skipped if the return is filed and paid by January 31 |
| April 15, 2027 | Form 540 due; all 2026 tax due; extension payment on FTB 3519 or Web Pay; first 2027 estimated payment (30%) |
| June 15, 2027 | Second 2027 estimated payment (40%) |
| September 15, 2027 | Third 2027 estimated payment (0%, nothing due) |
| October 15, 2027 | Extended due date; the extension is automatic, with no form |
The 2027 dates follow the pattern in the 2026 Form 540-ES instructions and the Department’s extension page; the 2027 forms are not yet published. Details and the forms themselves are in California calendar and forms.
Beyond the income tax
| Item | Figure |
|---|---|
| State sales tax rate | 7.25%, plus district taxes of 0.10% to 2.00%; groceries and prescriptions exempt |
| Property tax, Proposition 13 | 1% of assessed value plus voter-approved debt; assessed value grows at most 2% a year until a sale |
| Homeowners’ exemption | $7,000 off assessed value, about $70 a year; claim once on BOE-266 by February 15 |
| Proposition 19 base-year transfer, age 55+ | Carry the old assessed value to a replacement home anywhere in California, up to three times |
| Property Tax Postponement, age 62+ or disabled | Household income $55,181 or less (2025-26 program year; 2026-27 to come); applications October 1 to February 10 |
| Estate, inheritance and gift tax | None |
| Local income tax | None |
What changed from 2025
- Indexing, 3.4%. Standard deduction $5,900 / $11,800; personal credit $158 / $316; dependent credit $491; renter’s credit limits $55,830 / $111,660; every bracket boundary up about 3.4%. The 2025 adjustment was 3.0%.
- Alimony. Agreements executed after December 31, 2025 follow federal law: no California deduction, no California income. Older agreements keep the Schedule CA adjustment.
- SB 1435. CalEITC investment-income limit fixed at $3,400; no conformity to IRC 163(j) for individuals; excess business loss computed without wages. Retroactive to 2025.
- SDI. 1.3%, up from 1.2%.
- Interest. 7% for the first half of 2027.
- Pass-through entity tax. Extended through taxable years beginning before January 1, 2031; a short June 15 payment now reduces the credit instead of voiding the election.
- Not changed. The rates, the $1,000,000 surtax line, the $20,000 military exclusion, no conformity to the federal tips, overtime, senior and car-loan deductions, no HSA, no bonus depreciation. On November 3, 2026 voters approved Proposition 3, which keeps the top three brackets after 2030, and rejected Proposition 40, the one-time tax on billionaires, so no net-worth certification is added to the 2026 return. None of the measures changes a 2026 rate. See What is new in California for 2026.
Worked example: what one exemption credit is worth, and when it is not
A single filer, 2026, standard deduction, no dependents, at three income levels. The exemption credit is a flat $158 off the tax, which is why it matters more at the bottom.
| AGI $50,000 | AGI $100,000 | AGI $250,000 | |
|---|---|---|---|
| Taxable income after $5,900 | $44,100 | $94,100 | $244,100 |
| Tax from Schedule X | $1,131 | $5,069 | $19,019 |
| Personal exemption credit | −$158 | −$158 | −$158 |
| California tax | $973 | $4,911 | $18,861 |
| Effective rate on AGI | 1.9% | 4.9% | 7.5% |
The $250,000 filer is just under the 2025 phase-out threshold of $252,203; a few thousand dollars more and the credit starts to shrink by $6 for each $2,500 of AGI. Most of the tax at every level is in the 9.3% bracket, which begins at $75,197 and runs to $384,109.
Behind the scenes: why the figures arrive in two batches
The Department computes the inflation factor as soon as the June CPI is out, and the brackets and standard deduction follow directly from it, so those appear in October. The filing thresholds, the phase-out ranges and the CalEITC table are built on top of the brackets and on the federal figures that the IRS releases in the fall, and the Department waits for all of it before publishing the full list in late December. Software vendors get it at the same time. Anyone projecting a 2026 return before then is using the October figures for the tax and the 2025 figures for everything else, which is what this page does.
What to bring
- Last year’s Form 540, so this year’s figures can be compared line by line
- Dates of birth for everyone on the return; 65 adds a senior exemption credit
- Rent paid and the landlord’s address, for the renter’s credit
- Property tax bills and Form 1098, for the California itemized deduction comparison
- Child care provider statements for FTB 3506
- Estimated payment confirmations from Web Pay or MyFTB, with dates
Questions people ask
What is California’s top tax rate for 2026?
13.3%: the 12.3% bracket, which begins at $768,213 of taxable income on a single return and $1,536,426 on a joint one, plus the 1% Behavioral Health Services Tax on taxable income over $1,000,000. Capital gains and dividends are taxed at the same rates as wages.
What is the California standard deduction for 2026?
$5,900 for single or married filing separately, $11,800 for joint, head of household and surviving spouse. You can itemize for California even if you took the federal standard deduction; property tax and mortgage interest usually make that worthwhile for a homeowner.
Is there a California child tax credit?
Not a general one. Each dependent is a $491 nonrefundable exemption credit for 2026. The refundable Young Child Tax Credit, up to $1,189 for 2025, is only for CalEITC-eligible households with a child under 6.
How much do I have to owe before California wants estimated payments?
$500 ($250 married filing separately) after withholding and credits. The payments are 30% in April, 40% in June, nothing in September and 30% in January, which surprises people used to the federal quarters.
Where are the rest of the 2026 numbers?
The Department posts the complete list, including filing thresholds, phase-out ranges and CalEITC maximums, in late December 2026. This page will be updated when they appear.
Nine brackets, two batches of numbers, one line that never doubles
Use the October figures for the tax, the 2025 figures for the thresholds until December, and remember the $1,000,000 surtax line is the same whether you file alone or together.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
Sources and where to check
- FTB Tax News, October 2026: 2026 rate schedules and indexed amounts
- FTB Tax News, October 2025: 2025 rate schedules and indexed amounts
- FTB: CalEITC, YCTC and FYTC eligibility and credit amounts
- FTB: 2026 Form 540-ES instructions (estimated tax thresholds, e-pay rule)
- FTB: Penalties and interest
- FTB Tax News, September 2026: 2027 interest rate
- FTB Tax News, March 2026: military retirement exclusion, alimony, PTE extension
- EDD: 2026 SDI rate