2014 California Tax Rates and Exemptions

The rate of inflation in California, for the period from July 1, 2013, through June 30, 2014, was 2.2%. The 2014 personal income tax brackets are indexed by this amount.

Corporate tax rates

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

Phaseout of exemption credits

Higher-income taxpayers’ exemption credits are reduced as follows:

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:

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.

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 $37,768 or less.
  • The credit is $60.
• Married/RDP filing jointly, head of household, or qualifying widow(er) with a California AGI of $75,536 or less.
  • The credit is $120.

Miscellaneous credits

• Qualified senior head of household credit
  • 2% of California taxable income
  • Maximum California AGI of $69,005
  • Maximum credit of $1,300
• Joint custody head of household credit/dependent parent credit
  • 30% of net tax
  • Maximum credit of $425

AMT exemption

AMT exemption phaseout

FTB cost recovery fees

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.

2014 California Tax Rate Schedules

Schedule X — Single or married/RDP filing separately

Schedule Y — Married/RDP filing jointly, or qualifying widow(er) with dependent child

Schedule Z — Head of household

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.

* If you turn 65 on January 1, 2015, you are considered to be age 65 at the end of 2014.