California State Tax
State income tax is a tax levied by a state on your personal income based on what you earn within a tax year. State income taxes, which vary by state, are a percentage of money that you pay to the state government based on your income. In California you’re your state taxes also includes tax on goods, services, and property.
Similar to federal taxes, state taxes are self-assessed. Some states are based on a percentage of your income, while other states have a flat tax rate or no tax at all, even.
Who Pays California Taxes?
Just like the federal government, states impose additional income taxes on your income if you have a sufficient connection to the state.
Generally, you must file an income tax return in California if you’re a resident, part-year resident, or nonresident and you receive income from a source in California over the threshold for filing. California residents are also taxed on worldwide income
You may also want to file a return with California to get a refund if you qualify for the California Earned Income Tax Credit or you had money withheld from your paycheck for state taxes.
How Do You Pay California Taxes?
To pay California state taxes, follow these steps:
- Navigate to the website State of California Franchise Tax Board website.
- Choose the payment method. Your payment options include drawing from your bank account, credit card, check, money order, or electronic funds withdrawal. You can also set up a payment plan.
E-filing your California state return gets you the fastest refund and reduces errors. H&R Block tax software will choose the right state form for you.
Residents should file either:
Part-year residents and non-residents should file Form 540NR.
How Much Should You Pay in State Tax?
California’s state income tax rates range from 1 to 12.3%, plus a 1% surcharge on taxable incomes of $1 million or more. View more information about California tax rates.
When Are California State Tax Returns Due?
The California state tax deadline coincides with the federal tax deadline, which typically is on April 15, unless it falls on a weekend or holiday or deemed otherwise by the IRS.
How Do You Check If You’ve Paid State Taxes?
If you want to make sure your state taxes were paid, contact the California Department of Revenue to see if your payment was received. The contact information is as follows:
If you don’t pay California income taxes, you will likely incur penalties and fees. This is the case when you don’t:
- File on time
- Pay on time
- Pay enough estimated tax
- Have enough taxes withheld from your paycheck
- Pay electronically when you’re required
- Have insufficient funds to pay
View the California state’s Penalty reference chart for more information.
Deducting California Income Tax
If you pay California income tax, the IRS allows you to claim a deduction on your federal tax return for them. You can claim a state income tax deduction if you itemize deductions on your federal return. Due to the Tax Cuts and Jobs Act, state and local tax deductions, including state income taxes, are limited to $10,000 per year.
More Help With Taxes in California
Understanding your tax obligation is critical to optimizing your tax outcome. Thus, it’s critical to understand how to deduct California state tax from your federal taxes as an itemized deduction.
So, get help! Use Tax Pro Go, virtual tax prep offered by H&R Block. With this service, we’ll match you with a tax pro with California tax expertise. Then, you will upload your tax documents, and our tax pros will do the rest!
Taking California tax laws into consideration, we can make sure you are supported when it comes to taxes no matter where you file.
If you need help handling an estate, we're here to help. Learn how to file taxes for a deceased loved one with H&R Block.
From retirement account contributions to self-employment expenses, learn more about the five most common tax deductions with the experts at H&R Block.
Getting married? Having a baby? Buying a house? Go through your life events checklist and see how each can affect your tax return with the experts at H&R Block.
Donating household goods to your favorite charity? Learn the ins and outs of deducting noncash charitable contributions on your taxes with the experts at H&R Block.