2018 California Tax Rates and Exemptions
Find Corporate and individual tax rates and California tax exemptions for 2018.
Rate of inflation
The rate of inflation in California, for the period from July 1, 2017, through June 30, 2018, was 3.9%. The 2018 personal income tax brackets are indexed by this amount.
Corporate tax rates
| Entity type | Tax rate |
|---|---|
| Corporations other than banks and financials | 8.84% |
| Banks and financials | 10.84% |
| Alternative Minimum Tax (AMT) rate | 6.65% |
| S corporation rate | 1.5% |
| S corporation bank and financial rate | 3.5% |
Individual tax rates
- The maximum rate for individuals is 12.3%
- The AMT rate for individuals is 7%
- The Mental Health Services Tax Rate is 1% for taxable income in excess of $1,000,000.
Exemption credits
| Filing Status/Qualification | Exemption amount |
|---|---|
| Married/Registered Domestic Partner (RDP) filing jointly or qualifying widow(er) | $236 |
| Single, married/RDP filing separately, or head of household | $118 |
| Dependent | $367 |
| Blind | $118 |
| Age 65 or older | $118 |
| Estates* | $10 |
| Trusts* | $1 |
* Estates and Trusts exemption credits are considered “Special credits allowed” under R&TC §17733.
Phaseout of exemption credits
Higher-income taxpayers’ exemption credits are reduced as follows:
| Filing status | Reduce each credit by: | For each: | Federal AGI exceeds: |
|---|---|---|---|
| Single | $6 | $2,500 | $194,504 |
| Married/RDP filing separately | $6 | $1,250 | $194,504 |
| Head of household | $6 | $2,500 | $291,760 |
| Married/RDP filing jointly | $12 | $2,500 | $389,013 |
| Qualifying widow(er) | $12 | $2,500 | $389,013 |
When applying the phaseout amount, apply the $6/$12 amount to each exemption credit, but do not reduce the credit below zero. If a personal exemption credit is less than the phaseout amount, do not apply the excess against a dependent exemption credit.
Standard deductions
The standard deduction amounts for:
| Filing status | Deduction amount |
|---|---|
| Single or married/RDP filing separately | $4,401 |
| Married/RDP filing jointly, head of household, or qualifying widow(er) | $8,802 |
| The minimum standard deduction for dependents | $1,050 |
Reduction in itemized deductions
Itemized deductions must be reduced by the lesser of 6% of the excess of the taxpayer’s federal AGI over the threshold amount or 80% of the amount of itemized deductions otherwise allowed for the taxable year.
| Filing status | AGI threshold |
|---|---|
| Single or married/RDP filing separately | $194,504 |
| Head of household | $291,760 |
| Married/RDP filing jointly or qualifying widow(er) | $389,013 |
Earned Income Tax Credit
The California earned income tax credit is available to California households with federal adjusted gross income (AGI) of:
- Less than $16,751 if there are no qualifying children.
- Less than $24,951 if there are one or more qualifying children.
The maximum amount of investment income to remain eligible for the credit is $3,699.
Nonrefundable Renter’s credit
This nonrefundable, non-carryover credit for renters is available for:
- Single or married/RDP filing separately with a California AGI of $41,641 or less.
- The credit is $60.
- Married/RDP filing jointly, head of household, or qualifying widow(er) with a California AGI of $83,282 or less.
- The credit is $120.
Miscellaneous credits
- Qualified senior head of household credit
- 2% of California taxable income
- Maximum California AGI of $76,082
- Maximum credit of $1,434
- Joint custody head of household credit/dependent parent credit
- 30% of net tax
- Maximum credit of $469
AMT exemption
| Filing status | Amount |
|---|---|
| Married/RDP filing jointly or qualifying widow(er) | $95,373 |
| Single or head of household | $71,531 |
| Married/RDP filing separately, estates, or trusts | $47,685 |
AMT exemption phaseout
| Filing status | Amount |
|---|---|
| Married/RDP filing jointly or qualifying widow(er) | $357,650 |
| Single or head of household | $268,237 |
| Married/RDP filing separately, estates, or trusts | $178,822 |
FTB cost recovery fees
| Fee type | Fee |
|---|---|
| Bank and corporation filing enforcement fee | $100 |
| Bank and corporation collection fee | $365 |
| Personal income tax filing enforcement fee | $81 |
| Personal income tax collection fee | $266 |
The personal income tax fees apply to individuals and partnerships, as well as limited liability companies that are classified as partnerships. The bank and corporation fees apply to banks and corporations, as well as limited liability companies that are classified as corporations. Interest does not accrue on these cost recovery fees.
2018 California Tax Rate Schedules
| Taxable income over | But not over | Tax is |
|---|---|---|
| $0 | $8,544 | $0.00 + 1.00% of amount over $0 |
| $8,544 | $20,255 | $85.44 + 2.00% of amount over $8,544 |
| $20,255 | $31,969 | $319.66 + 4.00% of amount over $20,255 |
| $31,969 | $44,377 | $788.22 + 6.00% of amount over $31,969 |
| $44,377 | $56,085 | $1,532.70 + 8.00% of amount over $44,377 |
| $56,085 | $286,492 | $2,469.34 + 9.30% of amount over $56,085 |
| $286,492 | $343,788 | $23,897.19 + 10.30% of amount over $286,492 |
| $343,788 | $572,980 | $29,798.68 + 11.30% of amount over $343,788 |
| $572,980 | AND OVER | $55,697.38 + 12.30% of amount over $572,980 |
| Taxable income over | But not over | Tax is |
|---|---|---|
| $0 | $17,088 | $0.00 + 1.00% of amount over $0 |
| $17,088 | $40,510 | $170.88 + 2.00% of amount over $17,088 |
| $40,510 | $63,938 | $639.32 + 4.00% of amount over $40,510 |
| $63,938 | $88,754 | $1,576.44 + 6.00% of amount over $63,938 |
| $88,754 | $112,170 | $3,065.40 + 8.00% of amount over $88,754 |
| $112,170 | $572,984 | $4,938.68 + 9.30% of amount over $112,170 |
| $572,984 | $687,576 | $47,794.38 + 10.30% of amount over $572,984 |
| $687,576 | $1,145,960 | $59,597.36 + 11.30% of amount over $687,576 |
| $1,145,960 | AND OVER | $111,394.75 + 12.30% of amount over $1,145,960 |
| Taxable income over | But not over | Tax is |
|---|---|---|
| $0 | $17,099 | $0.00 + 1.00% of amount over $0 |
| $17,099 | $40,512 | $170.99 + 2.00% of amount over $17,099 |
| $40,512 | $52,224 | $639.25 + 4.00% of amount over $40,512 |
| $52,224 | $64,632 | $1,107.73 + 6.00% of amount over $52,224 |
| $64,632 | $76,343 | $1,852.21 + 8.00% of amount over $64,632 |
| $76,343 | $389,627 | $2,789.09 + 9.30% of amount over $76,343 |
| $389,627 | $467,553 | $31,924.50 + 10.30% of amount over $389,627 |
| $467,553 | $779,253 | $39,950.88 + 11.30% of amount over $467,553 |
| $779,253 | AND OVER | $75,172.98 + 12.30% of amount over $779,253 |
Individual Filing Requirements
If your gross income or adjusted gross income is more than the amount shown in the chart below for your filing status, age, and number of dependents, then you have a filing requirement.
| Filing Status | Age as of December 31, 2018* | California Gross Income | California Adjusted Gross Income | ||||
|---|---|---|---|---|---|---|---|
| Dependents | Dependents | ||||||
| 0 | 1 | 2 or more | 0 | 1 | 2 or more | ||
| Single or head of household | Under 65 | $17,693 | $29,926 | $39,101 | $14,154 | $26,387 | $35,562 |
| 65 or older | $23,593 | $32,768 | $40,108 | $20,054 | $29,229 | $36,569 | |
| Married/RDP filing jointly or separately | Under 65 (both spouses/RDPs) | $35,388 | $47,621 | $56,796 | $28,312 | $40,545 | $49,720 |
| 65 or older (one spouse) | $41,288 | $50,463 | $57,803 | $34,212 | $43,387 | $50,727 | |
| 65 or older (both spouses/RDPs) |
$47,188 | $56,363 | $63,703 | $40,112 | $49,287 | $56,627 | |
| Qualifying widow(er) | Under 65 | N/A | $29,926 | $39,101 | N/A | $26,387 | $35,562 |
| 65 or older | N/A | $32,768 | $40,108 | N/A | $29,229 | $36,569 | |
| Dependent of another person (Any filing status) | Under 65 | More than your standard deduction | |||||
| 65 or older | More than your standard deduction | ||||||
* If you turn 65 on January 1, 2018, you are considered to be age 65 at the end of 2017.