$58,227.85 + 12.30% of the amount over $599,012Ĭonsult the FTB’s schedules here if you’re filing your taxes jointly with a spouse, are a qualifying widow(er), or are using the “Head of Household” filing status.Ĭalifornians file their income taxes using FTB Form 540, the California Resident Income Tax Return.
If your filing status is “Single” or “Married Filing Separately,” you’ll calculate your 2020 California income tax based on the following schedule: Over Your income tax rate is based on which of the nine California tax brackets you fall into, and also your filing status. The California state income tax rate ranges from 1 to 12.3 percent. Same goes for people who earn income from pass-through entities like S Corporations and LLCs. Self-employed workers, independent contractors and unincorporated businesses in California might not have to pay state corporate or franchise taxes, but most still have to pay state income taxes. LPs and LLPs pay a flat franchise tax of $800 a year, while general partnerships and sole proprietors do not pay the franchise tax. LLC franchise taxes are based on net income and are determined by the following schedule: LLC Net Income S corporations in California must pay a franchise tax of 1.5% of their net income or $800, whichever amount is larger.
In California, they’re calculated differently depending on your business entity type. In some states franchise taxes are also called privilege taxes-as in, you’re paying for the privilege of doing business in that state. C corporations that don’t report a net income as well as pass-through entities must also pay a California franchise tax.Įxamples of pass-through entities include:
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