California Income Tax Law

California income tax law requires residents and certain non-residents to pay state taxes on income earned within the state. The tax system is progressive, meaning higher income levels are taxed at higher rates, ranging from 1% to 12.3%, with an additional 1% for incomes over $1 million. Income includes wages, business profits, investments, or other earnings. Tax is collected through withholding from paychecks or estimated payments. Filing deadlines typically align with federal deadlines. Deductions, credits, and exemptions are available to reduce taxable income, ensuring the tax burden is fair and reflects individual circumstances.