California Tax

California State Tax

California Income Tax

California state taxes fall into three primary categories. California residents are subject to income tax, sales tax, and property tax.

California Income Tax

The California state income tax is a progressive task structured according to seven marginal income tax brackets. Thus, the tax rate collected from the taxpayer goes higher as the income becomes greater. Marginal tax allowances are doubled for married couples filing their joint tax returns. The lowest tax rate is 1% while the highest can go up to 10.3%. Filing for tax returns must be completed on or before April 15 of each year.

California Sales Tax

California state tax laws levy tax on the sale of personal tangible items. Sales tax rates vary across the state. For instance California restaurant sales tax depends on several factors such as the type of food or beverage purchased, if it is eaten at the restaurant or not, if it is hot or cold, etc.  Business owners and sellers must file and pay their taxes on time to avoid high interests for unpaid sales tax. Depending on the sales, taxes are collected monthly, quarterly, or annually. Monthly sales tax deadline is the last day of the succeeding month, while payment of sales tax deadline for each quarter is the 31st of April, July, October, and January.

California Property Tax

The California tax law levies taxes on real estate. Property owners in California are required to pay their property taxes yearly. Failing to do so may prompt the state collector to property tax liens, a form of securing debt by claiming the property if the tax debt is not paid within the given period of time.