TAXES

OVERVIEW OF CALIFORNIA TAX SYSTEM

 

 

 

TaxBase or MeasureRateAdministering Agency
Corporation Income or Bank and Corporation Franchise TaxCombined net income apportioned to California.8.84%Franchise Tax Board
Sales and Use TaxReceipts from sales or lease of taxable items.7.25-9.75%Board of Equalization
Property Tax100% of Assessed ValuationAvg. 1.1%Board of Equalization
Personal Income TaxTaxable personal income.1-12.3%Franchise Tax Board
Unemployment Insurance Tax (aka Payroll Tax)First $7,000 of wages per employee per year.max. 6.2%Employment Development Department
Disability Insurance (employee paid)First $104,378 of wages.0.9%Employment Development Department
Finished Goods, Raw Materials, and Inventory TaxNONENONENONE
Workers’ Compensation InsurancePer $100 of payroll.Varies based on job classification, workplace safety record, and insurance carrier.Department of Insurance, Department of Industrial Relations