What Is California Income Tax Rate 2018?
California is known for having one of the highest income tax rates in the United States. As of 2018, the state has a progressive income tax system, meaning that tax rates increase as income levels rise. The income tax rates for California in 2018 range from 1% to 13.3%.
The tax brackets are as follows:
– For single filers:
– 1% on the first $8,544 of taxable income
– 2% on taxable income between $8,545 and $20,255
– 4% on taxable income between $20,256 and $31,969
– 6% on taxable income between $31,970 and $44,377
– 8% on taxable income between $44,378 and $56,085
– 9.3% on taxable income between $56,086 and $286,492
– 10.3% on taxable income between $286,493 and $343,788
– 11.3% on taxable income between $343,789 and $572,981
– 12.3% on taxable income between $572,982 and $1,000,000
– 13.3% on taxable income over $1,000,000
– For married/joint filers:
– 1% on the first $17,088 of taxable income
– 2% on taxable income between $17,089 and $40,511
– 4% on taxable income between $40,512 and $63,938
– 6% on taxable income between $63,939 and $88,754
– 8% on taxable income between $88,755 and $112,170
– 9.3% on taxable income between $112,171 and $572,984
– 10.3% on taxable income between $572,985 and $687,576
– 11.3% on taxable income between $687,577 and $1,145,962
– 12.3% on taxable income between $1,145,963 and $2,000,000
– 13.3% on taxable income over $2,000,000
Frequently Asked Questions:
1. Who has to pay California income tax?
– Anyone who earns income in California, regardless of residency, is required to pay California income tax.
2. Are there any deductions or exemptions available?
– Yes, there are various deductions and exemptions available, such as the standard deduction, dependents’ exemption, and deductions for mortgage interest and property taxes.
3. Do I have to file a California tax return if I live out of state but earn income in California?
– Yes, if you earn income in California, you are required to file a California tax return, regardless of your residency.
4. Can I file my California income tax return online?
– Yes, California offers an online filing system called CalFile, which allows taxpayers to file their state income tax returns electronically.
5. Are capital gains taxed differently in California?
– Yes, capital gains are taxed as ordinary income in California and are subject to the progressive tax rates.
6. Can I deduct my federal income tax from my California income tax?
– No, federal income tax payments cannot be deducted from your California income tax liability.
7. Are there any additional taxes or fees in California?
– Yes, California also imposes a 1% mental health services tax on taxable income exceeding $1 million, and a 0.25% surcharge on taxable income exceeding $1 million for the Mental Health Services Act.
Understanding the California income tax rate for 2018 is crucial when filing your state income tax return. Make sure to consult with a tax professional or refer to the California Franchise Tax Board’s website for the most accurate and up-to-date information regarding your specific tax situation.