{
  "$comment": "California 2026: progressive PIT on state wages with standard deduction, exemption credits with AGI phase-out, 1% Behavioral (Mental) Health Services Tax over $1M as a 13.3% band; SDI 1.3% uncapped. 2026 PIT amounts provisionally equal 2025 (FTB 2026 indexing not yet published; 2026 Form 540-ES uses 2025 amounts).",
  "country": "us",
  "jurisdiction": "us-ca",
  "taxYear": "2026",
  "period": {
    "start": "2026-01-01",
    "end": "2026-12-31",
    "tz": "America/Los_Angeles"
  },
  "status": "provisional",
  "engine": "us-payroll@1",
  "currency": "USD",
  "revision": 1,
  "params": {
    "incomeTax": {
      "kind": "brackets",
      "incomeBase": "stateWages",
      "brackets": {
        "single": [
          {
            "upTo": "11079",
            "rate": "0.01"
          },
          {
            "upTo": "26264",
            "rate": "0.02"
          },
          {
            "upTo": "41452",
            "rate": "0.04"
          },
          {
            "upTo": "57542",
            "rate": "0.06"
          },
          {
            "upTo": "72724",
            "rate": "0.08"
          },
          {
            "upTo": "371479",
            "rate": "0.093"
          },
          {
            "upTo": "445771",
            "rate": "0.103"
          },
          {
            "upTo": "742953",
            "rate": "0.113"
          },
          {
            "upTo": "1000000",
            "rate": "0.123"
          },
          {
            "upTo": null,
            "rate": "0.133"
          }
        ],
        "mfj": [
          {
            "upTo": "22158",
            "rate": "0.01"
          },
          {
            "upTo": "52528",
            "rate": "0.02"
          },
          {
            "upTo": "82904",
            "rate": "0.04"
          },
          {
            "upTo": "115084",
            "rate": "0.06"
          },
          {
            "upTo": "145448",
            "rate": "0.08"
          },
          {
            "upTo": "742958",
            "rate": "0.093"
          },
          {
            "upTo": "891542",
            "rate": "0.103"
          },
          {
            "upTo": "1000000",
            "rate": "0.113"
          },
          {
            "upTo": "1485906",
            "rate": "0.123"
          },
          {
            "upTo": null,
            "rate": "0.133"
          }
        ],
        "mfs": [
          {
            "upTo": "11079",
            "rate": "0.01"
          },
          {
            "upTo": "26264",
            "rate": "0.02"
          },
          {
            "upTo": "41452",
            "rate": "0.04"
          },
          {
            "upTo": "57542",
            "rate": "0.06"
          },
          {
            "upTo": "72724",
            "rate": "0.08"
          },
          {
            "upTo": "371479",
            "rate": "0.093"
          },
          {
            "upTo": "445771",
            "rate": "0.103"
          },
          {
            "upTo": "742953",
            "rate": "0.113"
          },
          {
            "upTo": "1000000",
            "rate": "0.123"
          },
          {
            "upTo": null,
            "rate": "0.133"
          }
        ],
        "hoh": [
          {
            "upTo": "22173",
            "rate": "0.01"
          },
          {
            "upTo": "52530",
            "rate": "0.02"
          },
          {
            "upTo": "67716",
            "rate": "0.04"
          },
          {
            "upTo": "83805",
            "rate": "0.06"
          },
          {
            "upTo": "98990",
            "rate": "0.08"
          },
          {
            "upTo": "505208",
            "rate": "0.093"
          },
          {
            "upTo": "606251",
            "rate": "0.103"
          },
          {
            "upTo": "1000000",
            "rate": "0.113"
          },
          {
            "upTo": "1010417",
            "rate": "0.123"
          },
          {
            "upTo": null,
            "rate": "0.133"
          }
        ]
      },
      "deductions": [
        {
          "type": "fixed",
          "id": "standard-deduction",
          "label": "California standard deduction",
          "amount": {
            "single": "5706",
            "mfj": "11412",
            "mfs": "5706",
            "hoh": "11412"
          }
        }
      ],
      "credits": [
        {
          "type": "perPerson",
          "id": "exemption-credits",
          "label": "Personal and dependent exemption credits",
          "filer": {
            "single": "153",
            "mfj": "306",
            "mfs": "153",
            "hoh": "153"
          },
          "perDependent": "475",
          "phaseout": {
            "single": {
              "threshold": "252203",
              "rate": "0.0024",
              "floor": "0",
              "reductionRounding": {
                "unit": "6",
                "mode": "up"
              }
            },
            "mfj": {
              "threshold": "504411",
              "rate": "0.0024",
              "floor": "0",
              "reductionRounding": {
                "unit": "6",
                "mode": "up"
              }
            },
            "mfs": {
              "threshold": "252203",
              "rate": "0.0048",
              "floor": "0",
              "reductionRounding": {
                "unit": "6",
                "mode": "up"
              }
            },
            "hoh": {
              "threshold": "378310",
              "rate": "0.0024",
              "floor": "0",
              "reductionRounding": {
                "unit": "6",
                "mode": "up"
              }
            }
          },
          "phaseoutPer": "perCredit"
        }
      ]
    },
    "conformity": {
      "k401": true,
      "k403b": true,
      "k457": true,
      "hsa": false,
      "healthFsa": true,
      "dependentCareFsa": true,
      "section125": true
    },
    "programmes": [
      {
        "id": "sdi",
        "label": "CA SDI (State Disability Insurance incl. Paid Family Leave)",
        "rate": "0.013",
        "wageBase": null,
        "annualCap": null,
        "weeklyCap": null,
        "base": "ficaWages",
        "employerRate": null
      }
    ]
  },
  "rounding": {
    "unit": "0.01",
    "mode": "halfUp",
    "stage": "perLine"
  },
  "knownCliffs": [
    {
      "id": "exemption-credit-steps",
      "field": "params.incomeTax.credits",
      "description": "Each personal/dependent exemption credit falls by $6 for each $2,500 (or fraction; $1,250 MFS) of AGI over the threshold, so tax can rise by $6 per credit when AGI crosses a $2,500 step."
    }
  ],
  "notModelled": [
    "Itemized deductions (standard deduction always used)",
    "Blind and senior exemption credits",
    "California EITC, Young Child Tax Credit, Foster Youth Tax Credit (refundable)",
    "Nonrefundable renter's credit, child and dependent care credit and other special credits",
    "Alternative minimum tax",
    "Exemption-credit phase-out uses federal AGI on Form 540 line 13; the engine uses CA AGI, which differs when HSA contributions are made (CA adds them back)",
    "Dependent care FSA above the CA §129 limit ($5,000) is CA-taxable; modelled as fully excluded",
    "Tax table / schedule whole-dollar rounding (exact rates used)",
    "Voluntary Plan DI instead of State SDI",
    "Local taxes (no California local income tax on wages; SF/LA payroll taxes are employer-paid)"
  ],
  "sources": [
    {
      "field": "period",
      "url": "https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf",
      "title": "FTB 2025 Form 540 Personal Income Tax Booklet (calendar tax year)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.kind",
      "url": "https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf",
      "title": "FTB 2025 Form 540 booklet — progressive personal income tax",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.incomeBase",
      "url": "https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf",
      "title": "Form 540 lines 12–19: state wages (W-2 box 16) less CA standard deduction; Schedule CA adjustments",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf",
      "title": "2025 California Tax Rate Schedules X, Y, Z (p. 75) plus Form 540 line 62 Behavioral Health Services Tax (1% on taxable income over $1,000,000, all filing statuses) added as a final 13.3% band",
      "retrieved": "2026-10-07",
      "note": "2026 indexed CA amounts (brackets, standard deduction, exemption credits, AGI limits) are not yet published: FTB announces indexing in its October Tax News and the full 2026 schedules in late December. The official 2026 Form 540-ES worksheet instructs taxpayers to use the 2025 standard deduction, 2025 tax table/rate schedules and 2025 exemption credit amounts, so the 2025 figures are used here as the best official evidence (provisional)."
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf",
      "title": "Form 540 line 18 — California Standard Deduction Chart for Most People ($5,706 / $11,412)",
      "retrieved": "2026-10-07",
      "note": "2026 indexed CA amounts (brackets, standard deduction, exemption credits, AGI limits) are not yet published: FTB announces indexing in its October Tax News and the full 2026 schedules in late December. The official 2026 Form 540-ES worksheet instructs taxpayers to use the 2025 standard deduction, 2025 tax table/rate schedules and 2025 exemption credit amounts, so the 2025 figures are used here as the best official evidence (provisional)."
    },
    {
      "field": "params.incomeTax.credits",
      "url": "https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf",
      "title": "Form 540 lines 7 and 10 ($153 personal, $475 dependent) and line 32 AGI Limitation Worksheet ($6 per $2,500 or fraction, $1,250 if MFS, over $252,203/$504,411/$378,310)",
      "retrieved": "2026-10-07",
      "note": "2026 indexed CA amounts (brackets, standard deduction, exemption credits, AGI limits) are not yet published: FTB announces indexing in its October Tax News and the full 2026 schedules in late December. The official 2026 Form 540-ES worksheet instructs taxpayers to use the 2025 standard deduction, 2025 tax table/rate schedules and 2025 exemption credit amounts, so the 2025 figures are used here as the best official evidence (provisional)."
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.ftb.ca.gov/forms/2026/2026-540-es-instructions.pdf",
      "title": "2026 Form 540-ES instructions, 2026 California Estimated Tax Worksheet (lines 2b, 4, 6a use 2025 amounts)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://www.ftb.ca.gov/forms/2026/2026-540-es-instructions.pdf",
      "title": "2026 Form 540-ES instructions, 2026 California Estimated Tax Worksheet (lines 2b, 4, 6a use 2025 amounts)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.credits",
      "url": "https://www.ftb.ca.gov/forms/2026/2026-540-es-instructions.pdf",
      "title": "2026 Form 540-ES instructions, 2026 California Estimated Tax Worksheet (lines 2b, 4, 6a use 2025 amounts)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.ftb.ca.gov/about-ftb/newsroom/tax-news/2025/10.html",
      "title": "FTB Tax News October 2025 — 2025 indexing (CCPI 3.0%) of brackets, standard deduction and exemption credits",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.conformity",
      "url": "https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf",
      "title": "Schedule CA (540) instructions: CA does not recognise HSAs (line 13 HSA deduction and employer HSA contributions W-2 code W added back on line 1h col. C); W-2 box 16 state wages exclude 401(k)/403(b)/457(b) elective deferrals, §125 and §129 amounts",
      "retrieved": "2026-10-07",
      "note": "CA conforms to IRC §129 as of its specified date ($5,000 limit); the OBBBA increase to $7,500 for 2026 is not adopted, so a dependent care FSA above $5,000 is CA-taxable. The boolean schema cannot express a partial limit."
    },
    {
      "field": "params.programmes.0",
      "url": "https://edd.ca.gov/en/payroll_taxes/rates_and_withholding/",
      "title": "EDD Rates and Withholding — SDI withholding rate for 2026 is 1.3% ; no taxable wage limit since 1 Jan 2024 (SB 951)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.programmes.0",
      "url": "https://edd.ca.gov/siteassets/files/pdf_pub_ctr/de44.pdf",
      "title": "EDD DE 44 California Employer's Guide 2026 — 2026 SDI withholding rate 1.3% (.013), no SDI taxable wage limit",
      "retrieved": "2026-10-07"
    },
    {
      "field": "rounding",
      "url": "https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf",
      "title": "Engine rounds each line to the cent; the FTB tax table/schedules round to whole dollars (≤ $1 difference)",
      "retrieved": "2026-10-07"
    }
  ]
}