California State Income Tax Withholding
Reference Number: NFC-23-1683113584
Published: April 11, 2023
Effective: Pay Period 04, 2023
Summary
The income tax withholdings formula for the State of California includes the following changes:
- The low income exemption amount for Single and Married with 0 or 1 allowance has changed from $15,916 to $17,252.
- The low income exemption amount for Married with 2 or more allowances and Head of Household has changed from $31,831 to $34,503.
- The standard deduction for Single and Married with 0 or 1 allowance has changed from $4,803 to $5,202.
- The standard deduction for Married with 2 or more allowances and Head of Household has changed from $9,606 to $10,404.
- The Single, Married, and Head of Household income tax withholding tables have changed.
- The annual personal exemption credit has changed from $141.90 to $154.00.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
|
State Abbreviation: |
CA |
|
State Tax Withholding State Code: |
06 |
|
Acceptable Exemption Form: |
DE-4 |
|
Basis for Withholding: |
State Exemptions |
|
Acceptable Exemption Data: |
S/M/H, Number of Regular Allowances, Number of Additional Allowances |
|
TSP Deferred: |
Yes |
|
Special Coding: |
Determine the Total Number of Allowances Claimed field as follows: First Position - Enter the employee's marital status indicated on the allowance certificate. Enter M (married), S (single), or H (head of household). Second and Third Positions - Enter the total number of regular allowances claimed in Item 1 of the DE-4. If less than 10, precede with a zero (0). If no allowance are claimed, enter 00. Determine the Additional Allowances Claimed field as follows: First and Second Positions - Enter the number of additional allowances claimed on the DE-4. If less than 10, precede with a zero (0). If no allowances are claimed, enter 00. |
|
Additional Information: |
Employees who have not submitted a DE-4 will default to Single and zero (S00) allowances. |
Withholding Formula (Effective Pay Period 04, 2023)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- Determine if the employee's gross salary and wages are less than or equal to the amount shown in the Low Income Exemption Table below. If so, no income tax is to be withheld.
Low Income Exemption Table
|
Single |
$17,252 |
|
Married Claiming 0 or 1 exemption1 |
$17,252 |
|
Married Claiming 2 or more exemptions1 |
$34,503 |
|
Head of Household |
$34,503 |
1Number of regular allowances claimed on DE-4.
Note: If the employee uses additional allowances for estimated deductions to reduce the amount of salaries and wages subject to withholding, such allowances must not be used in the computation of the low income exemption (Step 5) or standard deduction (Step 7).
- Determine the additional withholding allowance for itemized deductions (AWAID) by applying the following guideline and subtract this amount from the gross annual wages:
AWAID = $1,000 x Number of Itemized Allowances Claimed for Itemized Deductions on DE-4.
- Subtract the standard deduction shown in the Standard Deduction Table below from the result of step 6 to determine the taxable income.
Standard Deduction Table
|
Single |
$5,202 |
|
Married Claiming 0 or 1 exemption1 |
$5,202 |
|
Married Claiming 2 or more exemptions1 |
$10,404 |
|
Head of Household |
$10,404 |
1Number of regular allowances claimed on DE-4.
Note: If the employee uses additional allowances for estimated deductions to reduce the
amount of salaries and wages subject to withholding, such allowances must not be used
in the computation of the low income exemption (Step 5) or standard deduction (Step 7).
- If the employee is claiming Single, Married, or Head of Household use the appropriate table below and apply the following tax rates to annualized taxable wages to determine the annual tax amount:
Single Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
| Over $0 but not over $10,099 | 1.1% |
| Over $10,099 but not over $23,942 | $111.09 plus 2.2% of excess over $10,099 |
| Over $23,942 but not over $37,788 | $415.64 plus 4.4% of excess over $23,942 |
| Over $37,788 but not over $52,455 | $1,024.86 plus 6.6% of excess over $37,788 |
| Over $52,455 but not over $66,295 | $1,992.88 plus 8.8% of excess over $52,455 |
| Over $66,295 but not over $338,639 | $3,210.80 plus 10.23% of excess over $66,295 |
| Over $338,639 but not over $406,364 | $31,071.59 plus 11.33% of excess over $338,639 |
| Over $406,364 but not over $677,275 | $38,744.83 plus 12.43% of excess over $406,364 |
| Over $677,275 but not over $1,000,000 | $72,419.07 plus 13.53% of excess over $677,275 |
| Over $1,000,000 | $116,083.76 plus 14.63% of excess over $1,000,000 |
Married Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
| Over $0 but not over $20,198 | 1.1% |
| Over $20,198 but not over $47,884 | $222.18 plus 2.2% of excess over $20,198 |
| Over $47,884 but not over $75,576 | $831.27 plus 4.4% of excess over $47,884 |
| Over $75,576 but not over $104,910 | $2,049.72 plus 6.6% of excess over $75,576 |
| Over $104,910 but not over $132,590 | $3,985.76 plus 8.8% of excess over $104,910 |
| Over $132,590 but not over $677,278 | $6,421.60 plus 10.23% of excess over $132,590 |
| Over $677,278 but not over $812,728 | $62,143.18 plus 11.33% of excess over $677,278 |
| Over $812,728 but not over $1,000,000 | $77,489.67 plus 12.43% of excess over $812,728 |
| Over $1,000,000 but not over $1,354,550 | $100,767.58 plus 13.53% of excess over $1,000,000 |
| Over $1,354,550 | $148,738.20 plus 14.63% of excess over $1,354,550 |
Head of Household Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
| Over $0 but not over $20,212 | 1.1% |
| Over $20,212 but not over $47,887 | $222.33 plus 2.2% of excess over $20,212 |
| Over $47,887 but not over $61,730 | $831.18 plus 4.4% of excess over $47,887 |
| Over $61,730 but not over $76,397 | $1,440.27 plus 6.6% of excess over $61,730 |
| Over $76,397 but not over $90,240 | $2,408.29 plus 8.8% of excess over $76,397 |
| Over $90,240 but not over $460,547 | $3,626.47 plus 10.23% of excess over $90,240 |
| Over $460,547 but not over $552,658 | $41,508.88 plus 11.33% of excess over $460,547 |
| Over $552,658 but not over $921,095 | $51,945.06 plus 12.43% of excess over $552,658 |
| Over $921,095 but not over $1,000,000 | $97,741.78 plus 13.53% of excess over $921,095 |
| Over $1,000,000 | $108,417.63 plus 14.63% of excess over $1,000,000 |
- Determine the tax credit by applying the following guidelines and subtract this amount from the result in step 8:
Tax Credit = $154.00 x Number of Regular Allowances Claimed on DE-4.
Note: The number of additional allowances for estimated deductions claimed in step 6
must not be included when determining the tax credit.
- Divide the annual California tax withholding calculated in step 9 by the number of pay dates in the tax year to obtain the biweekly California income tax withholding.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.