State Tax Day - Current, S.2, California—Corporate, Personal Income Taxes: 2026 Rate Schedules, Filing Thresholds, Other Adjusted Figures Released, (Sep 8, 2026)

The California Franchise Tax Board has released indexed income tax figures for the 2026 taxable year, based on a 3.4% inflation rate from June 2025 through June 2026. The indexes values relate to:

personal income tax rates;
return filing thresholds;
sta ...

The California Franchise Tax Board has released indexed income tax figures for the 2026 taxable year, based on a 3.4% inflation rate from June 2025 through June 2026. The indexes values relate to:

personal income tax rates;
return filing thresholds;
standard deduction;
personal exemptions;
itemized deduction reduction and personal exemption phaseout thresholds;
alternative minimum tax (AMT) exemptions;
various credits;
doing business thresholds;
automobile depreciation deduction limitations;
individual shared responsibility penalty; and
Taxpayers’ Rights Advocate relief.

Personal Income Tax Rates

For 2026, the indexed personal income tax rates for single taxpayers and married taxpayers filing separately range from 1.0% of the first $11,456 of taxable income (formerly, $11,079 for 2025) to 12.3% of taxable income that is $768,213 and over (formerly, $742,953 and over for 2025).

For married taxpayers filing jointly and surviving spouses with a dependent child, the rates range from 1.0% of the first $22,912 of taxable income (formerly, $22,158 for 2025) to 12.3% of taxable income that is $1,536,426 and over (formerly, $1,485,906 and over for 2025).

For taxpayers filing as heads of households, the rates range from 1.0% of the first $22,927 of taxable income (formerly, $22,173 for 2025) to 12.3% of taxable income that is $1,044,771 and over (formerly, $1,010,417 and over for 2025).

Return Filing Thresholds

For 2026, a single taxpayer or head of household taxpayer must file a return if the taxpayer's adjusted gross income (AGI) exceeds an amount ranging from $18,977 to $48,989 (formerly, $18,353 to $47,378 for 2025) or if the taxpayer's gross income exceeds an amount ranging from $23,721 to $53,733 (formerly, $22,941 to $51,966 for 2025).

The corresponding AGI and gross income thresholds requiring married couples to file a return range from $37,959 to $75,881 (formerly, $36,711 to $73,386 for 2025) and from $47,447 to $85,369 (formerly, $45,887 to $82,562 for 2025), respectively.

A surviving spouse taxpayer must file a return if the taxpayer's AGI exceeds an amount ranging from $35,349 to $48,989 (formerly, $34,186 to $47,378 for 2025) or if the taxpayer's gross income exceeds an amount ranging from $40,093 to $53,733 (formerly, $38,774 to $51,966 for 2025).

The number of dependents and the taxpayer's age (under 65, or 65 or older) determine the filing threshold level that applies.

The tax threshold (the income level at which a person begins paying income taxes based on the tax rate schedule) has risen for 2026 to an AGI of $19,528 (formerly, $18,896 for 2025) for single or separate taxpayers and to $39,106 (formerly, $37,841 for 2025) for joint, surviving spouse, and unmarried head of household taxpayers.

Standard Deduction

The standard deduction increases for 2026 to $5,900 (formerly, $5,706 for 2025) for single taxpayers and married taxpayers filing separate returns and to $11,800 (formerly, $11,412 for 2025) for married taxpayers filing jointly, surviving spouses, and heads of households.

Personal Exemptions

The personal exemption credits increase for 2026 to $158 (formerly, $153 for 2025) for single taxpayers, married taxpayers filing separately, and heads of households and to $316 (formerly, $306 for 2025) for married taxpayers filing jointly and surviving spouses. The personal exemption amount for dependents increases to $491 (formerly, $475 for 2025).

Itemized Deduction Reduction and Personal Exemption Phaseout Thresholds

The AGI thresholds that activate the reduction of itemized deductions and the phaseout of personal exemption credits for 2026 are:

$260,778 for single taxpayers and married taxpayers filing separately (formerly, $252,203 for 2025);
$521,561 for married taxpayers filing jointly and surviving spouses (formerly, $504,411 for 2025); and
$391,173 for heads of households (formerly, $378,310 for 2025).

AMT Exemption

The AMT exemption amounts for 2026 increase to:

$95,902 (formerly, $92,749 for 2025) for single or unmarried taxpayers;
$63,932 (formerly, $61,830 for 2025) for married taxpayers filing separately and estates and trusts; and
$127,872 (formerly, $123,667 for 2025) for married taxpayers filing jointly and surviving spouses.

Exemption phaseouts begin at the following alternative minimum taxable income levels for 2026:

$359,622 (formerly, $347,808 for 2025) for single or unmarried taxpayers;
$239,752 (formerly, $231,868 for 2025) for married taxpayers filing separately and estates and trusts; and
$479,512 (formerly, $463,745 for 2025) for married taxpayers filing jointly and surviving spouses.

The special exemption limit for certain children under 24 in the calculation of AMT for 2026 is the child's earned income plus $10,000 (formerly, $9,750 for 2025).

Credits

The renter’s credit for 2026 will be available for single filers with adjusted gross incomes of $55,830 or less (formerly, $53,994 or less for 2025) and for joint filers with adjusted gross incomes of $111,660 or less (formerly, $107,987 or less for 2025).

The joint custody head of household credit and the dependent parent credit increase for 2026 to the lesser of $631 (formerly, $610 for 2025) or 30% of net tax.

The qualified senior head of household credit increases for 2026 to 2% of taxable income of up to $102,006 (formerly, $98,652 for 2025), up to a $1,923 (formerly, $1,860 for 2025) maximum credit amount.

For 2026, the California earned income tax credit will generally be available to households with AGI of less than $34,051 (formerly, $32,901 for 2025) regardless of whether the household has a qualifying child. No credit is allowed if the aggregate amount of investment income of a qualified taxpayer for the taxable year exceeds a specific amount. For taxable year 2026, that adjusted amount is $4,978 (formerly, $4,814 for 2025).

The maximum young child and foster youth tax credits for 2026 are $1,229 (formerly, $1,189 for 2025). The credits are reduced if the taxpayer’s earned income exceeds a threshold amount.

Doing Business Thresholds

The property, payroll, and sales factor thresholds for determining whether a taxpayer is doing business in California for 2026 are:

sales in California exceeding the lesser of $782,810 (formerly, $757,070 for 2025) or 25% percent of the total sales;
real property and tangible personal property in California exceeding the lesser of $78,281 (formerly, $75,707 for 2025) or 25% of the total real property and tangible personal property; or
compensation paid in California exceeding the lesser of $78,281 (formerly, $75,707 for 2025) or 25% of the total compensation paid.

Automobile Depreciation Deduction Limitations

The depreciation limitations for passenger automobiles (that are not trucks or vans) placed in service in 2026 for which the IRC Sec. 168(k) additional first year depreciation deduction does not apply are:

1st Tax Year: $3,860 (unchanged from $3,860 for automobiles placed in service in 2025);
2nd Tax Year: $6,200 (increased from $6,100 for automobiles placed in service in 2025);
3rd Tax Year: $3,650 (unchanged from $3,650 for automobiles placed in service in 2025);
Each Succeeding Year: $2,175 (unchanged from $2,175 for automobiles placed in service in 2025).

The depreciation limitations for trucks and vans placed in service in 2026 for which the IRC Sec. 168(k) additional first year depreciation deduction does not apply are:

1st Tax Year: $4,360 (unchanged from $4,360 for trucks and vans placed in service in 2025);
2nd Tax Year: $7,000 (increased from $6,900 for trucks and vans placed in service in 2025);
3rd Tax Year: $4,150 (unchanged from $4,150 for trucks and vans placed in service in 2025);
Each Succeeding Year: $2,475 (unchanged from $2,475 for trucks and vans placed in service in 2025).

The FTB also provides indexed lease inclusion amounts.

Individual Shared Responsibility Penalty

For 2026, the applicable dollar amount on which the individual shared responsibility penalty for adults is based is $950 (formerly, $950 for 2025). The actual amount of the penalty imposed on an uninsured individual for a month could be different from the applicable dollar amount, taking into account a variety of factors.

Taxpayers' Rights Advocate Relief

For 2025, the Taxpayers' Rights Advocate may grant a taxpayer up to $14,600 (formerly, $14,100 for 2025) in equitable relief from penalties, fees, additions to tax, or interest.

Memorandum, California Franchise Tax Board, September 3, 2026

State Tax Day - Current, S.2, California—Corporate, Personal Income Taxes: 2026 Rate Schedules, Filing Thresholds, Other Adjusted Figures Released, (Sep 8, 2026)

The California Franchise Tax Board has released indexed income tax figures for the 2026 taxable year, based on a 3.4% inflation rate from June 2025 through June 2026. The indexes values relate to:

personal income tax rates;
return filing thresholds;
sta ...

The California Franchise Tax Board has released indexed income tax figures for the 2026 taxable year, based on a 3.4% inflation rate from June 2025 through June 2026. The indexes values relate to:

personal income tax rates;
return filing thresholds;
standard deduction;
personal exemptions;
itemized deduction reduction and personal exemption phaseout thresholds;
alternative minimum tax (AMT) exemptions;
various credits;
doing business thresholds;
automobile depreciation deduction limitations;
individual shared responsibility penalty; and
Taxpayers’ Rights Advocate relief.

Personal Income Tax Rates

Return Filing Thresholds

The number of dependents and the taxpayer's age (under 65, or 65 or older) determine the filing threshold level that applies.

Standard Deduction

Personal Exemptions

Itemized Deduction Reduction and Personal Exemption Phaseout Thresholds

The AGI thresholds that activate the reduction of itemized deductions and the phaseout of personal exemption credits for 2026 are:

$260,778 for single taxpayers and married taxpayers filing separately (formerly, $252,203 for 2025);
$521,561 for married taxpayers filing jointly and surviving spouses (formerly, $504,411 for 2025); and
$391,173 for heads of households (formerly, $378,310 for 2025).

AMT Exemption

The AMT exemption amounts for 2026 increase to:

$95,902 (formerly, $92,749 for 2025) for single or unmarried taxpayers;
$63,932 (formerly, $61,830 for 2025) for married taxpayers filing separately and estates and trusts; and
$127,872 (formerly, $123,667 for 2025) for married taxpayers filing jointly and surviving spouses.

Exemption phaseouts begin at the following alternative minimum taxable income levels for 2026:

$359,622 (formerly, $347,808 for 2025) for single or unmarried taxpayers;
$239,752 (formerly, $231,868 for 2025) for married taxpayers filing separately and estates and trusts; and
$479,512 (formerly, $463,745 for 2025) for married taxpayers filing jointly and surviving spouses.

The special exemption limit for certain children under 24 in the calculation of AMT for 2026 is the child's earned income plus $10,000 (formerly, $9,750 for 2025).

Credits

The joint custody head of household credit and the dependent parent credit increase for 2026 to the lesser of $631 (formerly, $610 for 2025) or 30% of net tax.

The maximum young child and foster youth tax credits for 2026 are $1,229 (formerly, $1,189 for 2025). The credits are reduced if the taxpayer’s earned income exceeds a threshold amount.

Doing Business Thresholds

The property, payroll, and sales factor thresholds for determining whether a taxpayer is doing business in California for 2026 are:

sales in California exceeding the lesser of $782,810 (formerly, $757,070 for 2025) or 25% percent of the total sales;
real property and tangible personal property in California exceeding the lesser of $78,281 (formerly, $75,707 for 2025) or 25% of the total real property and tangible personal property; or
compensation paid in California exceeding the lesser of $78,281 (formerly, $75,707 for 2025) or 25% of the total compensation paid.

Automobile Depreciation Deduction Limitations

1st Tax Year: $3,860 (unchanged from $3,860 for automobiles placed in service in 2025);
2nd Tax Year: $6,200 (increased from $6,100 for automobiles placed in service in 2025);
3rd Tax Year: $3,650 (unchanged from $3,650 for automobiles placed in service in 2025);
Each Succeeding Year: $2,175 (unchanged from $2,175 for automobiles placed in service in 2025).

The depreciation limitations for trucks and vans placed in service in 2026 for which the IRC Sec. 168(k) additional first year depreciation deduction does not apply are:

1st Tax Year: $4,360 (unchanged from $4,360 for trucks and vans placed in service in 2025);
2nd Tax Year: $7,000 (increased from $6,900 for trucks and vans placed in service in 2025);
3rd Tax Year: $4,150 (unchanged from $4,150 for trucks and vans placed in service in 2025);
Each Succeeding Year: $2,475 (unchanged from $2,475 for trucks and vans placed in service in 2025).

The FTB also provides indexed lease inclusion amounts.

Individual Shared Responsibility Penalty

Taxpayers' Rights Advocate Relief

For 2025, the Taxpayers' Rights Advocate may grant a taxpayer up to $14,600 (formerly, $14,100 for 2025) in equitable relief from penalties, fees, additions to tax, or interest.

Memorandum, California Franchise Tax Board, September 3, 2026