California Tax Rates for 2006
We realize that 2006 is not over yet, but we know that
some people are eager to see what the 2006 tax rates will look like.
California has recently released the tax tables for 2006, and here is their
story.
The good news is California’s personal
income tax brackets will be indexed by 4.8 percent for 2006, which means
that some taxpayers will pay less in income taxes next year.
Indexing takes the inflation rate into account, and adjusts
tax brackets, filing requirement thresholds, the standard deduction, and
certain credits. The Franchise Tax Board (FTB) has computed the indexed
values using the inflation
rate of 4.8 percent, as measured by the California Consumer Price Index
for all urban consumers from June 2005 to June 2006.
Last year’s inflation rate measured 2.8 percent.
State tax law indexes minimum filing requirement thresholds
to ensure that most people who will not owe taxes are not required to file
a tax return. Here is a summary of those changes:
| Item | 2005 | 2006 |
|---|
| Minimum income to pay taxes |
Single & MFS |
$10,764 |
$11,271 |
| MFJ & HoH |
$21,527 |
$22,542 |
| Standard Deduction |
Single & MFS |
$3,254 |
$3,400 |
| MFJ, QW, & HoH |
$6,508 |
$6,820 |
| Personal Exemption |
Single, MFS, & HoH |
$87 |
$91 |
| MFJ, QW |
$174 |
$182 |
| Dependent Exemption |
$272 |
$285 |
Other tax credits affected by indexing include the Joint
Custody Head of Household Credit, Dependent Parent Credit, Qualified Senior
Head of Household Credit, and the Renter’s Tax Credit.
Refer to the chart below for tax rates:
2006 California tax rate schedules
Schedule X
Single, or married filing separate taxpayers |
If the taxable income is |
Computed tax is |
Over |
But not over |
|
Of amount over |
$0
$6,622
$15,698
$24,776
$34,394
$43,467 |
$6,622
$15,698
$24,776
$34,394
$43,467
And over |
$0.00
$66.22
$247.74
$610.86
$1,187.94
$1,913.78 |
Plus
Plus
Plus
Plus
Plus
Plus |
1.0%
2.0%
4.0%
6.0%
8.0%
9.3% |
$0
$6,622
$15,698
$24,776
$34,394
$43,467 |
Schedule Y
Married filing joint, or qualifying widow(er) taxpayers |
If the taxable income is |
Computed tax is |
Over |
But not over |
|
Of amount over |
$0
$13,244
$31,396
$49,552
$68,788
$86,934 |
$13,244
$31,396
$49,552
$68,788
$86,934
And over |
$0.00
$132.44
$495.48
$1,221.72
$2,375.88
$3,827.56 |
Plus
Plus
Plus
Plus
Plus
Plus |
1.0%
2.0%
4.0%
6.0%
8.0%
9.3% |
$0
$13,244
$31,396
$49,552
$68,788
$86,934 |
Schedule Z
Head of household taxpayers |
If the taxable income is |
Computed tax is |
Over |
But not over |
|
Of amount over |
$0
$13,251
$31,397
$40,473
$50,090
$59,166 |
$13,251
$31,397
$40,473
$50,090
$59,166
And over |
$0.00
$132.51
$495.43
$858.47
$1,435.49
$2,161.57 |
Plus
Plus
Plus
Plus
Plus
Plus |
1.0%
2.0%
4.0%
6.0%
8.0%
9.3% |
$0
$13,251
$31,397
$40,473
$50,090
$59,166 |
Much of this information taken from the October 2006 FTB Newsletter.
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