Taxes

CALIFORNIA TAX SERVICE CENTER

The California Tax Service Center is a partnership of the State Board of Equalization, State Employment Development Department, State Franchise Tax Board, and the Federal Internal Revenue Service. The purpose of the California Tax Service Center is to streamline and improve the taxpayer resources and educational program. For more information, please visit: http://www.taxes.ca.gov

CALIFORNIA TAX RATES

Tax Base or Measure Rate Administering Agency
Corporation Income Tax Combined net income apportioned to California. 8.84% Franchise Tax Board
Sales and Use Tax (Statewide Base Rate Only) Receipts from sales or lease of taxable items. 7.50% Board of
Equalization
Property Tax 100% of assessed valuation Avg. 1.1% Board of
Equalization
Personal Income Tax Taxable personal income 1.00-12.30% Franchise Tax Board
Unemployment Insurance Tax (“Payroll Tax”) Fixed by statute. First $7,000 of wages per employee per year. 1.5 – 6.2% Employment Develop. Dpt.
Employment Training Tax Fixed by statute. First $7,000 of wages per employee per year. 0.001% Employment Develop. Dpt.
Disability Insurance Tax (Employee paid) Taxable wage limit for withholding of $95,585. 1.00% Employment Develop. Dpt.
Finished Goods, Raw Materials, and Inventory Tax NONE NONE NONE
Workers’ Compensation Insurance Per $100 of payroll Varies based on job classification, workplace safety record, and insurance carrier. Department of Industrial Relations, Division of Workers’ Compensation

 

CORPORATION 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 1.50%
S corporation bank and financial rate 3.50%

For more information regarding California taxes view the California Business Investment Guide (PDF)
(Starts on page 28).