Personal income taxes: exemption credit: dependents.
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 Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill increases the personal income tax exemption credit for dependents in California. Starting in 2026, the credit will be $700 per dependent for taxable years through 2030, with adjustments for inflation starting in 2027. The credit was previously $227 and is being raised to $700 for the period 2026-2030, and will be adjusted for inflation after 2030. This change aims to provide greater financial relief to taxpayers with dependents.
Key provisions
- Increases the dependent exemption credit to $700 for taxable years beginning on or after January 1, 2026, and before January 1, 2031.
- Requires the Franchise Tax Board to adjust the credit amount for inflation starting January 1, 2027.
- The credit is for each dependent (as defined in Section 17056) for whom an exemption is allowable under Section 151(c) of the Internal Revenue Code.
- The credit is available for single individuals, heads of household, and spouses making separate returns.
- A credit of $52 is available for taxpayers who are 65 years of age or older.
- The bill takes effect immediately as a tax levy.
- The credit is not adjusted pursuant to subdivision (i) for any taxable year beginning before January 1, 2000.
Who is affected
- Taxpayers with dependents
- California residents
- Individuals claiming the dependent exemption credit
Notable changes
Bill text
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Sponsors
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1 on record
Primary sponsor
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