Thursday, July 3, 2008

California State Income Tax Rates

Before using our Income Tax Calculator, here are some basic tax principles that you should know. California state income tax along with a federal tax is usually withheld from your paycheck as you receive it each pay cycle. While the federal income tax rates are set for each income bracket, CA state income tax rates do not necessarily align with the federal figures.

The variable income tax rate for California is determined by CA state tax legislation. How much income tax that is withheld from your paycheck depends on which tax bracket you fall under. In general the more you make, the more you will be taxed. To find out more about CA income tax, sales tax, W4 forms, 1040 forms, tax returns, current state tax rates and general California tax information, click here for the Franchise Tax Board.

How California State income tax rates are structured

The tax table below will show in detail the California state income tax rates by income tax bracket(s). There are 6 income tax brackets for California.

If your income range is between $0 and $6,146, your tax rate on every dollar of income earned is 1%.

If your income range is between $6,147 and $14,570, your tax rate on every dollar of income earned is 2%.

If your income range is between $14,571 and $22,996, your tax rate on every dollar of income earned is 4%.

If your income range is between $22,997 and $31,924, your tax rate on every dollar of income earned is 6%.

If your income range is between $31,925 and $40,345, your tax rate on every dollar of income earned is 8%.

If your income range is $40,346 and over, your tax rate on every dollar of income earned is 9.3%.

Income tax brackets data as of December 31st, 2004.

1 comment:

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