Personal Income Tax Law: exclusions from income: retirement: overtime.
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 modifies California’s personal income tax law to provide a specific exclusion from gross income. It excludes the first $25,000 of overtime pay received by a taxpayer during a taxable year and the first $25,000 received as proceeds from a defined benefit plan. These exclusions will apply from January 1, 2026, through December 31, 2030.
Key provisions
- Excludes the first $25,000 of overtime pay from gross income.
- Excludes the first $25,000 of proceeds from a defined benefit plan from gross income.
- The exclusions apply to taxable years beginning on or after January 1, 2026.
- The exclusions will expire on December 31, 2030.
- The bill includes provisions related to reporting requirements for tax expenditures.
- The bill takes effect immediately as a tax levy.
Who is affected
- Taxpayers
- Employees who receive overtime pay
- Individuals with defined benefit plans
Notable changes
- Introduces a new exclusion for overtime pay and defined benefit plan proceeds.
- The exclusion is temporary, expiring in 2031.
Bill text
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Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
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