California Income Taxes – Professional Tax Services

Living in California continues to be difficult for many Californians, especially when it comes to taxes. Californians still have to endure the highest individual income tax, sales tax, and retirement income tax rates in the entire country.
For 2024, the personal tax rates for married taxpayers filing jointly range from 1.0% for the first $21,512 and rise incrementally to a whopping 12.3% for taxpayers whose net income is over $1,442,628. Add to this situation, a sales tax rate that exceeds 10% in some areas of California, with Santa Clarita’s now standing at 9.5%, doesn’t make life any easier.
Careful tax planning that reduces your tax burden is more important than ever for California residents. This is why we continue to stress the importance of tax plans to our clients and offer them unlimited complimentary tax planning advice throughout the calendar year.
One piece of good news is that California still does not place a tax on Social Security or have an estate tax (an estate is subject to income taxes). Let’s make sure the lawmakers in Sacramento keep it this way. Still, you will have to pay the IRS for a portion of your Social Security benefits depending on your level of income.
As our homes have increased in value, so have our property taxes. The good news, thanks to Proposition 13, is that property tax is still limited to 1% of your home’s cash value. Be aware, however, that Prop 13’s 1% rule does not cover a change in ownership or new construction.
More good news is that California does offer homeowners certain property tax exemptions.
Let’s take a look at the California tax rate for joint filers:
Income Level Tax Rate
$0 to $21,512 1%
Over $21,512 to $50,998 2%
Over $50,998 to $80,490 4%
Over $80,490 to $111,732 6%
Over $111,732 to $141,212 8%
Over $141,212 to $721,418 9.3%
Over $721,418 to $865,574 10.3%
Over $865,574 to $1,442,628 11.3%
Over $1,442,628 12.3%

Taxes for 2024 are due on April 15, 2025. However, if you were impacted by the fires, the IRS and California have extended the deadline to file until October 15. Furthermore, California sales and use tax filing has been postponed from January 31, 2025, until April 30.
If you have specific questions concerning federal or state taxes, tax planning, or finding a reputable tax professional, we welcome you to contact us.
Professional Tax Services is a locally owned provider serving over 3,800 local residents and businesses. For more information, call 661-259-1967 or visit www.scvprotaxservices.com.

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