Personal income tax: rate.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill changes California’s personal income tax rates and brackets for taxable years beginning on or after January 1, 2025. It replaces the existing 2%, 4%, 6%, and 8% tax rates with new rates of 1%, 3%, 5%, and 7%, respectively, for income levels up to $25,499. The bill also adjusts the income brackets to reflect these new rates, with the highest rate of 9.3% applying to income exceeding $23,950. The changes are intended to take effect immediately as a tax levy.
Key provisions
- Replaces existing income tax rates and brackets.
- Establishes new tax rates of 1%, 3%, 5%, and 7% for specific income ranges.
- Increases the highest tax rate to 9.3% for income exceeding $23,950.
- The changes apply to taxable years beginning on or after January 1, 2025.
- The bill takes effect immediately as a tax levy.
- Adjusts income brackets to align with the new tax rates.
- Inflation adjustment mechanism is included to account for changes in the Consumer Price Index.
Who is affected
- California residents
- California businesses
- Taxpayers
- Individuals
- Tax professionals
Notable changes
- Reduces income tax rates for lower income brackets.
- Increases the top marginal tax rate.
- Modifies the income tax brackets to align with the new rates.
Bill text
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Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
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