The California Employment Development Department (EDD) has issued the 2017 withholding tables for calendar year 2017 to its website. The 2017 tables include an extension of the personal income tax on high wage earnings.

Voters approve extension on personal income tax increase

On November 8, 2016, California voters approved an extension of the personal income tax increase on high-income earners that was approved by voters in 2012 (Proposition 30) and was effective retroactively to January 1, 2012. Originally scheduled to expire at the end of calendar year 2018, 2016 Proposition 55 extends the expiration date for the tax increase to the end of calendar year 2030.

The 1% to 3% income tax rate increase applied to taxable income over $250,000 a year for individuals or over $500,000 for couples (income levels adjusted yearly for inflation). The increased taxes provide funding for education and healthcare for low-income individuals.

For example, for calendar year 2016 individuals with taxable income over $268,750 (couples over $537,500) pay at 10.3%; individuals over $322,499 (couples over $644,998) at 11.3%; and individuals over $537,498 (couples over $1,074,996) at 12.3%. (Other taxable income limits apply to the Head of Household filing status.) Had Proposition 55 not been approved, these tax rates were scheduled to revert back to the pre-2012 rate of 9.3%.

For the income tax rate schedules for 2016, see the California Franchise Tax Board website.

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