California personal income tax rate
Personal income tax rate
The tax ranges from 1% to 12.3%. There is an additional tax of 1% on taxable income exceeding $1 million (referred to as the “millionaire tax”).
Corporate income tax rate
8.84%. There are special rates for S corporations and banks and financial institutions. The corporation income tax is imposed on corporations not subject to the franchise tax for their net income derived from sources within the state. There is no minimum corporate tax (see the franchise tax card for minimum franchise tax).
Out-of-state businesses may establish nexus with California through economic nexus. Physical presence is not required to establish nexus with the state. California applies a factor presence standard. A taxpayer has income tax nexus if it is doing business in California, and a taxpayer is doing business in California if its in-state sales exceed the lesser of a threshold amount that is adjusted annually for inflation ($735,019 for the 2024 tax year) or 25% of its total sales. Consult Doing business in California for detailed information.
Franchise tax rate
The franchise tax functions as an income tax and is imposed on corporations (except exempt corporations), banks and financial corporations doing business within the state for the privilege of exercising their corporate franchises. There is a minimum franchise tax of $800.
General partnerships do not pay annual tax; however, limited partnerships are subject to the annual tax of $800.
Note: Every LLC doing business or organized in California must pay an annual tax of $800. Additionally, LLCs making more than $250,000 pay a fee based on their California income levels; the minimum fee is $900, and the maximum fee is $11,790.
Sales/use tax
The combined statewide tax rate is 7.25%, consisting of a 6% state rate plus a 1.25% city and county rate. The 7.25% rate applies in any locality in-state, unless the locality has additional special or district taxes. Access specific California city and county sales/use tax rates.
Visit California sales/use tax for additional detailed information. Consult the consolidated California sales tax chart to view summarized material such as remote seller nexus rules, sales tax holidays and administration information.
Pass-through entity/general business taxes
Access California business tax information for compliance obligations.
California allows a pass-through entity tax election for taxable years beginning on or after Jan. 1, 2021, and before Jan. 1, 2026.
Due dates by tax type:
Review the state tax form instructions to the related form of interest for specific due date information. See the state tax forms tab in this roadmap for quick access.
State tax forms
Common state tax forms:
100, California Corporation Franchise or Income Tax Return
100S, California S Corporation Franchise or Income Tax Return
540, California Resident Income Tax Return
565, California Partnership Return of Income Booklet