Overview of California Tax System

Tax Base or Measure Rate Administering Agency
Corporation Income or Bank and Corporation Franchise Tax Combined net income apportioned to California. 8.84% Franchise Tax Board
Sales and Use Tax Receipts from sales or lease of taxable items. 7.25-10.25% Board of Equalization
Property Tax 100% of Assessed Valuation Avg. 1.1% Board of Equalization
Personal Income Tax Taxable personal income. 1-13.3% Franchise Tax Board
Unemployment Insurance Tax (aka Payroll Tax) First $7,000 of wages per employee per year. 1.5 – 6.2% Employment Development Department
Disability Insurance (employee paid) Taxable wage limit for withholding of $106,742. 0.9% Employment Development Department
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 Insurance, Department of Industrial Relations