States / California

California

Last checked Oct 22, 2026

California practitioners deal with three tax agencies, each with its own login, plus the Secretary of State for business filings. The Franchise Tax Board (income tax, MyFTB) runs on a platform CGI built from 2011 to 2016 under a benefits-funded contract, extended from 2021 to January 2026 by Voyatek (EDR2) at a total project cost of $801.5 million. The Department of Tax and Fee Administration (sales and use and special taxes) moved to FAST Enterprises' GenTax between 2018 and 2020 under an $85.1 million contract, a project that cost about $279 million in all. The Employment Development Department collects payroll taxes on another FAST system (ACES, live 2011), while its unemployment, disability and paid family leave claims run on systems Deloitte built in the early 2010s. Deloitte also won the EDDNext claims replacement in 2026: $101.4 million base, $221.7 million with the unemployment option, inside an $817.6 million project. Paid family leave, which EDD in 2014 called the first state program of its kind, is part of State Disability Insurance and runs on the same EDD systems.

Who administers what

Every fact links to its source and carries a label: Public record Vendor claim Press / secondary

What the state has spent

Contract totals are the approved ceilings or current contract values the sources state, not money paid, and they are added up only where a plain contract figure exists. The yearly average spreads each system's payments over the years they cover (marked p), or, where no payment data was found, its contract total over the contract term (marked c); systems with neither are left out; it is an estimate of the yearly cost, not a reported figure. Payments to date and project budgets or estimates are added up in their own tiles, from the figures shown in the table; the three kinds of figure overlap and are never added together. Follow each system below for its sources.

Portals practitioners use

Leadership and contacts

Checked Oct 30, 2026. People change roles often; confirm on the agency's site before relying on a name.

Chain of command

• Voters
  • Governor: Gavin Newsom
    • Member, Franchise Tax Board (Director of Finance): Joe Stephenshaw Franchise Tax Board
    • Director: Trista H. Woessner-Gonzalez California Department of Tax and Fee Administration
    • Director: Nancy Farias Employment Development Department
  • State Controller and Chair, Franchise Tax Board: Malia M. Cohen Franchise Tax Board
  • Member, Franchise Tax Board (Chair, Board of Equalization): Sally J. Lieber Franchise Tax Board
  • Secretary of State: Shirley N. Weber, Ph.D. California Secretary of State

Employer account numbers

Checked Oct 24, 2026.

One number covers every California state payroll tax. The Employment Development Department (EDD) assigns an eight-digit employer payroll tax account number, and the employer uses it for Unemployment Insurance (UI), the Employment Training Tax (ETT), State Disability Insurance (SDI, which funds Disability Insurance and Paid Family Leave) and California Personal Income Tax (PIT) withholding: all four are deposited on the Payroll Tax Deposit (DE 88) and reconciled on the quarterly DE 9 and DE 9C under that account.

Layout: 9 is a digit, A is a letter, other characters are shown as the agency writes them. No real account numbers appear on this site.

Employer tax ID numbers for every state researched

Unemployment insurance tax

Checked Nov 3, 2026. California Employment Development Department (EDD)

California's UI taxable wage limit is $7,000 per employee for 2027, unchanged from 2026, and new employers pay 3.4 percent for two to three years. The 2027 rate schedule is again Schedule F+ (Schedule F plus a 15 percent emergency surcharge), with rates from 1.5 to 6.2 percent, and employers also pay the 0.1 percent Employment Training Tax. California has an outstanding federal loan: its employers lost 1.2 percent of FUTA credit for 2025, and DOL lists a potential 2026 reduction of 5.3 percent, final after November 10, 2026.

Taxable wage base

2027: $7,000
2026: $7,000 source Public record

New employer rate

2027: 3.4% Assigned for two to three years, depending on when the employer meets the criteria of CUIC section 982(b). A buyer of an established business may keep the previous owner's rate.
2026: 3.4% For a period of two to three years. source Public record

Rate range

2027: 1.5% to 6.2%, Schedule F+ (Schedule F plus a 15 percent emergency surcharge, rounded to the nearest tenth) Rates come from one of seven schedules, AA through F, set by law. Employers subject to CUIC section 977(c) (SUTA dumping) pay the highest rate provided by law plus an additional 2 percent.
2026: 1.5% to 6.2%, Schedule F+ (Schedule F plus a 15 percent emergency surcharge, rounded to the nearest tenth) source Public record

Other assessments

• Employment Training Tax (ETT): 0.1 percent of the first $7,000 of each employee's wages (at most $7 per employee per year) (2027) source Public record
• Employment Training Tax (ETT): 0.1 percent of the first $7,000 of each employee's wages; set by statute for employers with positive UI reserve account balances and those subject to CUIC section 977(c) (2026) source Public record

Rate notices

The Notice of Contribution Rates and Statement of UI Reserve Account (DE 2088) is mailed in December, with a mailing date of December 31; it combines the UI, ETT and SDI rates.. Protest: Within 60 days of the December 31 mailing (issued) date, online in e-Services for Business with the notice's Letter ID or in writing postmarked within 60 days; any item can be protested except SDI and ETT. An extension of up to 60 days may be granted for good cause if asked for before the deadline. source Public record

Voluntary contributions

Not allowed, Not available for 2026 or 2027: voluntary UI contributions are allowed only in years when schedules AA to D are in effect, not under schedules E or F or when the emergency solvency surcharge applies. In years they are allowed, an eligible employer sent a DE 2088A has until the last working day in March to pay. source Public record

Filing

Quarterly Contribution Return and Report of Wages (DE 9) with the continuation (DE 9C); UI and ETT are paid quarterly with the Payroll Tax Deposit (DE 88)
Due: Due April 1, July 1, October 1 and January 1; delinquent if not filed by the last day of the month after the quarter (for 2026: April 30, July 31, November 2, 2026 and February 1, 2027)
Electronic filing: Required: all employers must electronically submit employment tax returns, wage reports and payroll tax deposits (a waiver can be requested on the DE 1245W)
e-Services for Business source Public record

FUTA credit reduction

2025: 1.2%
2026: potential 5.3% DOL's potential 2026 list: 1.5 percent for the outstanding advance plus an estimated 3.8 percent Benefit Cost Rate (BCR) add-on, a preliminary estimate. The BCR add-on can be waived and replaced by the 2.7 add-on. Final only if the advance is not repaid by November 10, 2026.. Outstanding Title XII advance of $19,707,914,163.15 on November 2, 2026 (U.S. Treasury Fiscal Data, the dataset DOL's UI budget page links to). DOL's 2025 figure carries the footnote that the state received credit reduction add-on relief. source Public record

Recent and coming changes

• Nov 10, 2026 Potential 2026 FUTA credit reduction for California employers of 5.3 percent (1.5 percent plus an estimated 3.8 percent BCR add-on), up from 1.2 percent for 2025; DOL sets the final figure after November 10, 2026. source Public record
• Jan 1, 2027 2027 rates posted: Schedule F+ continues (1.5 to 6.2 percent), the wage limit stays $7,000 and the ETT stays 0.1 percent. source Public record

The UI taxable wage limit is a fixed $7,000; EDD's pages do not describe indexing. UI and ETT are employer-paid; SDI (1.4 percent for 2027, 1.3 percent for 2026) is withheld from employees and is not part of the UI figures here.

Not confirmed: Whether the ETT counts toward the FUTA credit: EDD's pages read do not say. The final 2026 FUTA credit reduction for California, which DOL determines after November 10, 2026.

Unemployment insurance tax in every state

Income tax withholding

Checked Nov 3, 2026

California Personal Income Tax (PIT) withholding is administered by the Employment Development Department (EDD), not the Franchise Tax Board: employees file the state's own DE 4, the federal Form W-4 is used for federal withholding only, and an employee with no certificate on file is withheld as Single with zero allowances. Supplemental wages paid separately may be withheld at a flat 10.23 percent for bonuses and stock options and 6.6 percent for other supplemental wages, and a nonresident who works both in and outside California is withheld only on the California share of wages, by working days. PIT is deposited with SDI on the DE 88 on a schedule tied to the federal schedule and the accumulated PIT ($350 and $400 triggers), all returns and deposits must be electronic; no local income tax withheld by employers was found.

Withholding certificate

DE 4, Employee's Withholding Allowance Certificate. Federal Form W-4: not accepted as a substitute for a new DE 4; EDD says that starting January 1, 2020 the federal Form W-4 is used for federal income tax withholding only, but an employer may keep using an existing, earlier valid Form W-4 or DE 4 already on file. At hire: the employer must have the employee complete a federal Form W-4 and a completed DE 4. A DE 4 claiming exempt must be renewed by February 15 each year. With no certificate on file: If the employee does not file a DE 4, the employer may use the existing withholding certificate on file; with no certificate on file, withhold as Single with zero withholding allowances. Two exemptions are claimed on the DE 4 itself: line 3 (no federal or state income tax liability in the prior year and none expected in the current year; good for one year, renewed by February 15) and line 4 for the spouse of a service member under the Servicemembers Civil Relief Act as amended by the Military Spouses Residency Relief Act and the Veterans Benefits and Transition Act of 2018. source Public record

Supplemental wages

2026: 10.23%. Bonuses and stock options: 10.23 percent (.1023), without allowing for any withholding allowances, when the supplemental wage is not paid at the same time as regular wages (the employer may instead use the aggregate method). Paid with regular wages, the sum is treated as regular wages.
2026: 6.6%. Other supplemental wages (such as overtime pay, commissions, sales awards, severance and vacation pay): 6.6 percent (.066), on the same conditions. source Public record

Withholding tables

California Employer's Guide (DE 44), section California Withholding Schedules for 2026: Method A (Wage Bracket Table Method, limited to wages or salaries less than $1 million) and Method B (Exact Calculation Method) (2026). DE 44 Rev. 52 (4-26). Questions about the Method B methodology for software go to the Franchise Tax Board, Statistical Solutions and Modeling Section. No 2027 schedules were published as of this check.

Reciprocity

No reciprocal agreements. The DE 44 describes no reciprocal agreement for wages with any state; its only reciprocal reference is Interstate Reciprocal Coverage Elections, an unemployment insurance coverage election for multistate workers. source Public record

Nonresidents working here

No day or dollar threshold appears in the DE 44. A nonresident who performs all services within California is withheld on all wages; a nonresident who works both in California and in another state is withheld only on the California share, by working days in California compared with total working days (by volume of business for employees paid on volume). DE 44, Wages Paid to Nonresidents of California. source Public record

Deposits and returns

• next-day: required to make federal next-day deposits and more than $400 in California PIT accumulated during one or more payroll periods. Due next business day
• semiweekly: required to make federal semiweekly deposits and more than $400 in California PIT accumulated during one or more payroll periods. Due paydays Wednesday, Thursday or Friday: the following Wednesday; paydays Saturday through Tuesday: the following Friday
• monthly: federal annual, quarterly or monthly depositor that accumulates $350 or more in California PIT during one or more months of a quarter, or a federal semiweekly or next-day depositor that accumulates $350 to $400. Due 15th of the following month
• quarterly: accumulated PIT of less than $350 (or no PIT withheld). Due with the quarterly return: for 2026, delinquent if not paid by April 30, July 31 and November 2, 2026 and February 1, 2027

Quarterly Contribution Return and Report of Wages (DE 9) and Continuation (DE 9C), due April 1, July 1, October 1 and January 1 and delinquent if not filed by the last day of the month after the quarter (for 2026: April 30, July 31, November 2, 2026 and February 1, 2027). Deposits are made on the Payroll Tax Deposit (DE 88). All employers must electronically submit employment tax returns, wage reports and payroll tax deposits to EDD. e-Services for Business (EDD) source Public record

Annual reconciliation

DE 9 and DE 9C, due Quarterly. For the October to December 2026 quarter: due January 1, 2027, delinquent if not filed by February 1, 2027.. With the W-2 and 1099 filing rules

PIT is deposited and reported together with UI, ETT and State Disability Insurance (SDI) under the EDD employer payroll tax account. The DE 9 and DE 9C are the reconciliation: see the information returns section for W-2 and 1099 filing. The DE 44 says that if supplemental wages are paid at the same time as regular wages, the sum must be treated as regular wages.

Not confirmed: No California rule on a convenience of the employer test for withholding was found in the DE 44; left null. No primary source states in so many words that California has no reciprocal wage agreement; the empty list rests on the DE 44 describing none. No 2027 withholding schedules or announced 2027 changes were found as of 2026-11-03; refresh in December. Local taxes: no California city or county income tax withheld by employers was found in the DE 44, but no primary source saying so in terms was saved.

Withholding rules in every state

Credits for other states' taxes and part-year residents

Checked Nov 3, 2026

California gives residents the other state tax credit on Schedule S (credit code 187) for net income tax paid to another state or U.S. possession on income sourced there, but not for tax paid to Arizona, Oregon or Virginia (which give the credit instead), to cities or counties, or to foreign countries. A part-year resident files Form 540NR and keeps non-California income from the nonresident period out by allocation: Schedule CA (540NR), column E takes only California source income for that period, and the tax on all income is applied through the CA tax rate. California gives a reverse credit to nonresidents who live in Arizona, Guam, Oregon or Virginia, and is a sovereignty member of the Multistate Tax Commission.

Residents: credit for tax paid to other states

Schedule S, Other State Tax Credit (attached to Form 540, Form 540NR or Form 541); a separate Schedule S for each state. Line: Schedule S, line 12, claimed with credit code 187 on Form 540, line 43 or 44 (Form 540NR, line 58 or 59); more than two credits go on Schedule P (540) or Schedule P (540NR), Part III. Limit: The smaller of line 6 (California tax, Form 540 line 48 before this credit and the PTE elective tax credit, multiplied by double-taxed income taxable by California divided by California AGI, not more than 1.0000) or line 11 (income tax paid to the other state multiplied by double-taxed income taxable by the other state divided by AGI taxable by the other state, not more than 1.0000). Covers: Net income taxes imposed by and paid to the states and U.S. possessions on the residents' list in the instructions (the listed states, plus American Samoa, Puerto Rico and the Virgin Islands); for DC, the unincorporated business tax (and the income tax for dual residents only); New Hampshire business profits tax; Tennessee excise tax only; Virginia for dual residents only. A tax whose base includes amounts other than net income is not a net income tax (Cal. Code Regs., tit. 18, section 18001-1, as amended effective January 1, 2024). No credit for any tax comparable to California's alternative minimum tax. No: do not include taxes paid to any local government, such as a city or county. Foreign taxes: No: do not include taxes paid to any foreign country. Pass-through entity taxes: Yes: a partner, member or shareholder may be eligible for the credit for a pro rata share of another state's PTE elective tax if R&TC Sections 18001 and 18006 are met; partners and LLC members get a credit for their share of net income tax paid by the entity, and S corporation shareholders for net and gross income taxes paid by the S corporation in states that tax S corporations. Attach: Schedule S and a copy of the return(s) filed with the other state(s). The income taxed by the other state must have a source there under California's own sourcing rules. No credit if the other state allows California residents a credit for tax paid to California, so Arizona, Oregon and Virginia are not on the residents' list (except Virginia for dual residents, and a share of tax on group nonresident returns filed with Arizona, Oregon or Virginia unless those states allow the credit). A claim for refund based on tax paid to another state may be filed within one year from the date that tax is paid, or within the general statute of limitations if later. R&TC Sections 18001 and 18006; Cal. Code Regs., tit. 18, section 18001-1. source Public record

Part-year residents: income while a nonresident

Allocated or prorated California taxes all income received while a resident and only California source income received while a nonresident. On Schedule CA (540NR), column D figures total AGI as if a full-year resident, and column E takes all income from all sources while a resident plus California source income while a nonresident; column B may not be used to subtract income earned while a nonresident or from outside California. The tax on total taxable income is turned into a CA tax rate (line 31 divided by line 19) and applied to California taxable income (line 35). Form 540NR with Schedule CA (540NR). Line: Schedule CA (540NR), column E; Form 540NR, lines 35 to 37. source Public record

Part-year residents: credit for the period of residence

Available. A part-year resident follows the resident instructions for the part of the year as a California resident and the nonresident instructions for the rest; the tax figure on Schedule S, line 2 comes from Form 540NR, line 63. Schedule S with Form 540NR. source Public record

Nonresidents: reverse credit

Yes, for residents of Arizona, Guam, Oregon, Virginia. Nonresidents may claim the credit only for net income tax paid to their state of residence, and only if that state does not allow its residents a credit for tax paid to California. Claimed on Schedule S with Form 540NR, using double-taxed income included in Schedule CA (540NR), Part II, line 27, column E. Not allowed on a group nonresident return. source Public record

Local income taxes

California has no local income tax credit; Schedule S excludes taxes paid to another state's cities or counties. source Public record

Multistate Tax Compact

Sovereignty member. source Public record

Other interstate rules

• For taxable years beginning on or after January 1, 2017, Indiana is no longer a reverse credit state for California: California residents may claim the credit for Indiana tax, and California nonresidents may not claim it for tax paid to Indiana. source Public record
• Dual residents (California and Virginia residents under each state's law) may claim the credit for Virginia tax on Virginia source income. source Public record

Recent and coming changes

• Jan 1, 2026 SB 132 extends the PTE elective tax to taxable years beginning on or after January 1, 2026 and before January 1, 2031, and keeps the rule that, to figure the other state tax credit, net tax payable is increased by the PTE elective tax credit that reduced it, through taxable years beginning before January 1, 2031. source Public record

Tax year 2025 Schedule S instructions, Schedule S, and the Form 540 and Form 540NR booklets. California has no reciprocal withholding agreement (see the withholding data). The 2025 Schedule S instructions still describe the PTE adjustment as applying to years before January 1, 2026; the FTB PTE page shows SB 132 carried it through 2030.

Not confirmed: UDITPA or Compact apportionment status not checked against a primary source. Residency presumption and safe harbor rules (R&TC 17014 and 17016, FTB Pub. 1031) not saved: leginfo.legislature.ca.gov returned 403 to a plain request and the Pub. 1031 PDF URL tried returned 404.

Multistate rules in every state

Business return deadlines and annual reports

Checked Nov 4, 2026

A C corporation files Form 100 with the Franchise Tax Board by the 15th day of the 4th month after its tax year closes (April 15, 2026 for calendar 2025), with an automatic 7-month extension to file but not to pay. Partnerships file Form 565, and LLCs taxed as partnerships Form 568, by the 15th day of the 3rd month (March 16, 2026). Corporations file a Statement of Information with the Secretary of State every year ($25) and LLCs and nonprofit corporations every two years ($20), in the month of registration, and a late filing draws a $250 penalty collected by the Franchise Tax Board.

Corporate return

Franchise tax. Form 100 (or Form 100W), California Corporation Franchise or Income Tax Return. Due: 15th day of the 4th month after the close of your tax year; total tax owed is due the same day. For tax year 2025: Apr 15, 2026. Fiscal years: The due dates apply to both calendar and fiscal tax years. For a short period with no federal return required, the return is due the 15th day of the 4th month after the close of the tax year; when a federal return is required, it is due the same date as the federal return. The minimum franchise tax is $800. source Public record

Corporate extension

Automatic. 7 months: for tax year 2019 and later, to the 15th day of the 11th month after the close of the tax year (November 16, 2026 for calendar 2025, since November 15 is a Sunday). No application; if tax is owed, pay with FTB 3539 (corporations and exempt organizations). The automatic extension applies only to corporations that are not suspended. An extension to file is not an extension to pay; the total tax owed is due by the original due date.

S corporations

Form 100S, California S Corporation Franchise or Income Tax Return. Due: 15th day of the 3rd month after the close of your tax year; total tax owed is due the same day (minimum franchise tax $800). For tax year 2025: Mar 16, 2026. Automatic 6 months, to the 15th day of the 9th month after the close of the tax year (September 15, 2026), for S corporations that are not suspended; no application, pay with FTB 3539. Not an extension to pay. source Public record

Partnerships

Form 565, Partnership Return of Income (general partnerships, LPs, LLPs, LLLPs); LLCs file Form 568. Due: 15th day of the 3rd month after the close of your tax year. LPs, LLPs and LLLPs also pay the $800 annual tax by the same day; general partnerships pay no annual tax. For tax year 2025: Mar 16, 2026. Automatic 7 months, to the 15th day of the 10th month after the close of the tax year (October 15, 2026); no application. If tax is owed, pay by the original due date with FTB 3538 (LPs, LLPs, REMICs) or FTB 3537 (LLCs). source Public record

Individuals

Form 540 (residents), Form 540NR (nonresidents and part-year residents). For tax year 2025: Apr 15, 2026. Automatic extension to October 15, 2026 with no application; payment is still due April 15, 2026 (FTB 3519 to pay by mail). source Public record

Other business returns with a fixed date

• LLC annual tax ($800), FTB 3522 voucher: 15th day of the 4th month after the beginning of the tax year (April 15, 2026 for calendar 2026). Every LLC doing business or organized in California. source Public record
• LLC fee estimate, FTB 3536: 15th day of the 6th month of the current tax year (June 15, 2026 for calendar 2026); the fee itself is due with Form 568. LLCs with total California income of $250,000 or more. source Public record
• Form 568, Limited Liability Company Return of Income: 15th day of the 3rd month after the close of the tax year for an LLC classified as a partnership or a single member LLC owned by a pass-through entity (March 16, 2026); 15th day of the 4th month for a single member LLC owned by an individual or a non-pass-through entity (April 15, 2026). LLCs doing business or organized in California. source Public record
• Form 199 or 199N, exempt organization return: 15th day of the 5th month after the close of the tax year (May 15, 2026); extended to the 15th day of the 11th month. Organizations exempt under R&TC 23701 (except 23701r); Form 199N if gross receipts are normally $50,000 or less. source Public record

Annual report

Filed with the California Secretary of State, Business Programs Division (penalties assessed and collected by the Franchise Tax Board) through bizfile Online.

The Secretary of State's Statement of Information pages and FAQ list only corporations and LLCs; no periodic Statement of Information for limited partnerships or LLPs appears on the LP and LLP forms pages. An LLP that uses the alternative security provision files an annual confirmation on Form LLP-3 ($30.00). A statement should also be filed whenever information changes, and must be filed when the agent for service of process resigns. The startup step's facts match these sources.

Recent and coming changes

• Aug 1, 2026 Effective August 1, 2026, web User Access to the entity's record is required to file a Statement of Information online on bizfile Online. source Public record

No change to the Form 100, 100S, 565 or 568 due dates for tax year 2026 was found on the FTB due date and extension pages (extension page last updated 03/18/2026). If a due date falls on a weekend or holiday, the FTB allows until the next business day.

Not confirmed: The statutes behind the Statement of Information penalty (Corporations Code 2204 and 17713.09) could not be read: leginfo.legislature.ca.gov returned 403 to a plain request. Whether California limited partnerships file any periodic report with the Secretary of State is not stated on the pages read; confirm in the Corporations Code. The tax year 2026 Form 100 and 100S booklets were not yet checked for a due date change.

Deadlines and annual reports in every state

Electronic payment, penalties and interest

Checked Nov 4, 2026

Individuals must pay the Franchise Tax Board electronically once an estimated or extension payment is over $20,000 or a return shows tax over $80,000 (corporations must use EFT on the same triggers), every employer must pay EDD payroll deposits electronically, and CDTFA requires EFT once average monthly sales and use tax reaches $10,000. The FTB charges 5% a month of the unpaid tax for a late return, up to 25%, and 5% plus 0.5% a month (up to 40 months) for late payment. Interest on income tax underpayments is 7% a year from July 1 to December 31, 2026.

Interest on unpaid tax

The FTB rate applies to personal income tax underpayments and overpayments, corporation underpayments and estimate penalties; the interest rate is adjusted twice a year. The refund figure shown is the corporation overpayment rate; personal income tax overpayments earn the same rate as underpayments. No rate for January 1, 2027 had been posted. Compounding: Daily. RTC 19521 (not read: blocked). source Public record

When tax must be paid electronically

• Individual: Electronic payments are required if you make an estimated tax or extension payment over $20,000, or file an original return with a tax liability over $80,000. Fiduciaries, estates and trusts are not required to pay electronically. Methods: Bank account (Web Pay), electronic funds withdrawal on an e-filed return, or credit card. None stated; the FTB sends a Mandatory e-pay Participation Notice for confirmation. A waiver request form can be faxed or mailed. Penalty for paying another way: 1% of the amount not electronically paid (RTC 19011.5). source Public record
• Corporate: Banks and corporations must use EFT if an estimated tax or extension payment is over $20,000, or total tax liability due is over $80,000. Methods: ACH debit or ACH credit (free); Web Pay also satisfies the requirement. Authorization Agreement for Electronic Funds Transfer (FTB 3815); ACH debit users then activate the account with the state's data collector. Penalty for paying another way: 10% of the amount not electronically paid (RTC 19011). source Public record
• Withholding: All employers, including out of state employers, must submit employment tax returns, wage reports and payroll tax deposits electronically (EDD E-file and E-pay Mandate). Methods: e-Services for Business. A waiver is requested on Form DE 1245W. Penalty for paying another way: 15% of the amount due on a DE 88 payroll tax deposit not made electronically (Unemployment Insurance Code 1112(b), 1112.1(a) and 1114(b)). source Public record
• Sales and use: Average monthly sales and use tax liability equals or exceeds $10,000 over a 12-month period (also prepaid MTS surcharge at $10,000 a month, and special taxes and fees at $20,000 a month). Methods: ACH debit through CDTFA online filing or a third party, ACH credit, Fedwire. Penalty for paying another way: 10% of the taxes or fees due on monthly and quarterly returns; 6% on sales and use tax prepayments. source Public record

Penalties

Late filing

Covers: Personal income and business entity returns filed with the FTB, when the tax was not paid by the due date and the return was not filed by the extended due date. 5% of the amount due for each month or part of a month unpaid, from the original due date, after payments and credits made on or before that date. Maximum: 25%. Minimum: Individuals: for a return more than 60 days late, $135 or 100% of the balance due, whichever is less. RTC 19131. source Public record

Late payment

Covers: Individuals and businesses that do not pay the entire amount due by the payment due date; for LLCs it is figured on the annual tax, LLC fee and nonconsenting nonresident tax. 5% of the unpaid tax, plus 0.5% of the unpaid tax for each month or part of a month it is unpaid. Maximum: The monthly part runs no more than 40 months. Not stated on the FTB pages read. The Form 540 booklet says the FTB may waive the late payment penalty for reasonable cause, which is presumed when 90% of the tax shown on the return is paid by the original due date. RTC 19132. source Public record

Estimated tax, individuals

Charged as penalty. Days late multiplied by the effective interest rate for the installment period; the estimate penalty rate is 7% for July 1 to December 31, 2026. Safe harbor: Withholding plus estimated payments of at least 90% of this year's tax or 100% of last year's tax (110% if California AGI was more than $150,000, or $75,000 married/RDP filing separately). With California AGI of $1,000,000 or more ($500,000 married/RDP filing separately), the current year's tax must be used. Form: FTB 5805. source Public record

Estimated tax, corporations

Charged as penalty. Figured from the installment due date to the earlier of the payment date or the return due date, at the estimate penalty rate (7% for July 1 to December 31, 2026). Safe harbor: Installments of 30%, 70%, 70% and 100% of the current year's tax; Exception A lets a regular corporation use the prior year's tax (a full 12-month return), and a large corporation may use it only when the prior year's tax is less than the current year's. Form: FTB 5806. source Public record

Penalty relief

Reasonable cause: pay the full amount, then file a reasonable cause claim for refund (FTB 2917 for individuals and fiduciaries, FTB 2924 for business entities) with the notice and supporting documents. First-time or good history: One-Time Penalty Abatement (RTC 19132.5): once in a lifetime, individuals under the Personal Income Tax Law only (not fiduciaries, estates or trusts), taxable years beginning on or after January 1, 2022; cancels the failure to file and failure to pay penalties if all returns are filed, no earlier one-time abatement was granted, and all other liabilities are paid or in a current installment agreement. How: FTB 2918, or by MyFTB authenticated chat or secure message, or by phone at 800-689-4776. Time limit: Not stated on the pages read. source Public record

Other penalties

• Dishonored payment. 2% of a payment of $1,250 or more; under $1,250, $25 or the payment amount, whichever is less (RTC 19134). source Public record
• Late S corporation or partnership return (including LLCs treated as partnerships). $18 for each shareholder, partner or member per month, up to 12 months (RTC 19172 and 19172.5). source Public record
• Demand penalty: no return filed by the date on a Demand for Tax Return. 25% of the total tax due, regardless of timely payments or credits (RTC 19133). source Public record
• Underpayment of estimated LLC fee. 10% of the underpaid fee (RTC 17942). source Public record
• Statement of Information filed late with the Secretary of State (collected by the FTB; only the SOS can waive it). $250, or $50 for exempt organizations. source Public record
• EDD payroll returns and wage reports not filed electronically. $50 per return (DE 9, DE 3D, DE 3HW); $20 per wage item (DE 9C, DE 3BHW). source Public record
• CDTFA late payment. 10% of the tax (6% for prepayments) received after the due date, plus interest. source Public record

California has three tax agencies: the FTB (income and franchise tax), EDD (payroll taxes, which are all e-pay) and CDTFA (sales and use and special taxes). Late filing, late payment, estimated tax and interest above are the FTB's. CDTFA sets its own interest rate, the IRS rate plus 3 percent reviewed each January and July.

Not confirmed: RTC 19521 (interest), 19131, 19132 and 19011.5 on leginfo.legislature.ca.gov returned 403 to automated reads; the statute text was not read. Whether the FTB late filing and late payment penalties are both charged for the same months, or one reduces the other, is not stated on the FTB pages read. The FTB rate for January 1 to June 30, 2027 was not posted as of 2026-11-04. CDTFA's interest rate table, as saved, lists periods only through 12/31/2024, so a current CDTFA rate is not recorded. FTB time limit for a reasonable cause claim for refund was not read.

Electronic payment, penalties and interest in every state

Disaster relief rules

Checked Nov 4, 2026

California does not follow IRS postponements automatically for disasters in the state: the Franchise Tax Board says the state evaluates each declaration that triggers IRS relief in California case by case under Revenue and Taxation Code section 18572, and posts each postponement it grants. For disasters outside California, FTB lists the IRS disasters and says the California relief periods are the same as the IRS periods unless noted. Income tax relief is automatic by address (write the disaster name on the return); the CDTFA (sales and use and other taxes) and EDD (payroll taxes) give relief only on request.

When the IRS postpones deadlines

Announces relief case by case "For any given state of emergency or presidential disaster declaration, that triggers IRS tax relief/postponement in California, the State will evaluate any filing and or payment postponement in response to each declaration or emergency on a case-by-case basis, consistent with existing authority per Revenue and Taxation Code section 18572." For disasters outside California: "The California disaster relief periods for the listed disasters are the same as the disaster relief periods announced by the IRS for each disaster, unless otherwise noted.". In California, only the areas named for each postponement (for example, only Los Angeles County for the January 2025 fires); a taxpayer outside the area whose records are with a tax practitioner in the area also qualifies (FTB winter storm Q&A). For disasters outside California, the areas in the IRS announcement. The outside-California list includes IRS relief based on a state declaration (Washington, Douglas County wildfires, IRS WA-2026-02), not only FEMA declarations. Revenue and Taxation Code section 18572 (as cited by FTB); FTB Disaster loss page and Disasters outside of California page. source Public record

Taxes covered

Franchise Tax Board: filing returns, paying income taxes and making IRA contributions; deadlines may be postponed up to one year. Recent postponements covered individual returns and payments, quarterly estimated payments, partnership, LLC, S corporation, corporate, fiduciary and exempt organization returns and payments, pass-through entity elective tax payments, LLC annual tax and estimated fee payments (Los Angeles County fires, 2025), and nonresident and real estate withholding returns and payments (Forms 592 and 593, 2022 to 2023 winter storms). CDTFA: an extension of up to three months to file and pay sales and use tax and the other listed tax and fee programs, on request. EDD: up to two months for payroll reports, returns and deposits (UI, ETT, SDI and California PIT withholding), on request. Not covered: Installment agreement payments are not automatically suspended. Coverage is set per event: the 2022 LLC annual tax and LLC estimated fee did not qualify for the 2022 to 2023 winter storm postponement, while the 2025 LLC payments did qualify for the Los Angeles County fires. source Public record

State-declared disasters

FTB: "California has authority to postpone certain tax deadlines when there is a state of emergency declared by the Governor, or the President makes a major disaster declaration." CDTFA lists the states of emergency declared in California and gives relief on request to taxpayers directly affected. EDD: when the Governor declares a state of emergency, directly affected employers can ask for an extension of up to two months under Unemployment Insurance Code section 1111.5. source Public record

How to get relief

FTB: automatic, based on the ZIP code of the principal residence or principal place of business; no list of clients or power of attorney is required. Write the disaster name in blue or black ink at the top of a paper return, or follow the software instructions for an e-filed return; label postponed payments by tax year and payment type. CDTFA: log in to online services and choose Submit a Relief Request, or file CDTFA-735 (Request for Relief from Penalty, Collection Cost Recovery Fee, and/or Interest); call 1-800-400-7115 for free copies of records. EDD: request online through e-Services for Business or the Disaster or Emergency Extension form, or call 1-888-745-3886, stating that the request is made under section 1111.5 of the CUIC and why the filing or payment could not be made on time. Penalties: FTB: interest and penalties are canceled on the underpaid income tax for the length of the postponement; an affected taxpayer billed a penalty for a due date in the postponement period should contact FTB to have it abated. CDTFA may relieve interest and penalties for taxpayers unable to file and pay on time because of the disaster. EDD extensions are without penalties or interest. source Public record

Where relief is posted

FTB Emergency tax postponement (CDTFA: State of Emergency Tax Relief, https://www.cdtfa.ca.gov/services/state-of-emergency-tax-relief.htm; EDD: Emergency and Disaster Assistance for Employers)

Other disaster tax rules

• Disaster loss: a loss from a President or Governor declared disaster in California may be deducted, and California generally follows federal law on casualty and disaster losses; FTB's List of California Disaster Codes shows for each disaster whether the state (Governor declared) or federal throwback election applies and the carryover period. source Public record
• Disaster victims can get free copies of state returns by filing form FTB 3516 with the disaster name written at the top. source Public record
• Qualified disaster relief payments (IRC section 139) made by an employer are not subject to California PIT withholding or reportable as PIT wages, but are still subject to UI, ETT and SDI unless excluded under CUIC section 938. source Public record

Three agencies give disaster relief separately: FTB (income tax), CDTFA (sales and use tax and special taxes and fees) and EDD (payroll taxes). The FTB footnote on the disaster codes page says "the DOF will evaluate" each postponement; the disaster loss page says "the State will evaluate".

Not confirmed: The text of Revenue and Taxation Code section 18572 was not read: leginfo.legislature.ca.gov returned a Cloudflare check page. Whether the statute itself adopts IRC section 7508A, and any amendment history, is unconfirmed. No statute is cited on the CDTFA page for its up-to-three-month extension and relief. No standing FTB statement was found on whether California follows IRS relief for disasters declared only by a governor of another state, beyond the listing of WA-2026-02 on the outside-California page. No sales tax exemption for disaster rebuilding or revenue-agency property tax relief was looked for; California property tax disaster relief is run by county assessors.

Current disaster relief and every state's rules

Federal tax picture

From the IRS's own statistics: the Data Book for fiscal 2025 and Statistics of Income for tax year 2023. Every state

Collected by type: Individual income tax withheld and FICA tax $494.5B; Individual income tax payments and SECA tax $143.6B; Business income taxes $109.4B; Excise taxes $8.7B; Estate tax $4.7B; Estate and trust income tax $3.8B; Unemployment insurance tax $1.6B; Gift tax $289M; Railroad retirement tax $11M. source Public record

Filers moving in and out, 2022 to 2023

252,863 returns (389,700 people) with $24.2B of income moved in from other states; 353,260 returns (590,247 people) with $36.1B moved out, a net loss of $11.9B in income. source Public record

Minimum wage

Checked Nov 3, 2026. California Department of Industrial Relations, Labor Commissioner's Office (Division of Labor Standards Enforcement)

California's minimum wage is $16.90 an hour from January 1, 2026 and rises to $17.40 on January 1, 2027, for all employers regardless of size. The rate is adjusted each year for inflation (CPI-W), capped at 3.5 percent a year, and the Department of Finance certified the 2027 rate on July 31, 2026. California allows no tip credit, so tipped workers get the full minimum wage; fast food restaurant workers ($20.00) and covered health care workers have higher statewide minimums, and many cities set their own.

Rate

$16.90 from Jan 1, 2026 All employers, regardless of the number of employees.
$17.40 from Jan 1, 2027 Certified by the Department of Finance on July 31, 2026. source Public record

How it is set

Indexed: national CPI-W; no decrease if the CPI is negative, and no more than 3.5 percent in one year. Announced: Certified by the Department of Finance in the summer before it takes effect (July 31, 2026 for the 2027 rate) California Labor Code section 1182.12 (SB 3, Stats. 2016) source Public record

Other rates

• Fast food restaurant employees (AB 1228, Labor Code section 1474 and following), effective April 1, 2024; the Fast Food Council may raise it each year by the smaller of 3.5 percent or the CPI increase: $20.00 (2026) source Public record
• Health care workers at hospitals or integrated health systems with 10,000 or more full-time employees, dialysis clinics, and large county facilities: $25 from July 1, 2026 to December 31, 2027 ($24 before July 1, 2026): $25.00 (2026) source Public record
• Health care workers at safety net hospitals and small county facilities: $19.28 from July 1, 2026 to June 30, 2027, then $19.95 from July 1, 2027: $19.28 (2026) source Public record
• Health care workers at intermittent, community and rural health clinics: $22 from July 1, 2026 to June 30, 2027, then $25 from July 1, 2027: $22.00 (2026) source Public record
• Health care workers at all other covered health care facilities and medium county facilities: $23 from July 1, 2026 to June 30, 2028: $23.00 (2026) source Public record

Tipped employees

2026: cash wage $16.90, tip credit $0.00 No tip credit allowed: an employer may not use tips as a credit toward the minimum wage.
2027: cash wage $17.40, tip credit $0.00 No tip credit allowed. source Public record

Youth and training wages

No lower rate for minors. Learners of any age may be paid not less than 85 percent of the minimum wage, rounded to the nearest nickel, during their first 160 hours in an occupation where they have no similar or related experience. source Public record

Local minimum wages

Allowed

• San Francisco (rate from July 1, 2026; adjusted each July 1 by CPI): $19.61 in 2026 source Public record
• City of Los Angeles (rate from July 1, 2026; adjusted each July 1): $18.42 in 2026 source Public record

source Public record

Overtime-exempt salary

2026: $70,304 a year
2027: $72,384 a year source Public record

Poster

General Minimum Wage Order MW-2026 (post next to the IWC industry or occupation order)

Recent and coming changes

• Jan 1, 2027 Statewide minimum wage rises from $16.90 to $17.40 an hour; exempt salary minimum rises to $72,384 a year. source Public record
• Jul 1, 2026 Health care worker minimum wage steps up for each facility type (for example $24 to $25 at large systems and dialysis clinics, $21 to $22 at community clinics). source Public record

The exempt salary minimum is twice the state minimum wage for full-time work (2 x 40 hours x 52 weeks). Health care exempt salary is computed differently (see the Labor Commissioner's health care FAQ). DIR points to a UC Berkeley Labor Center list for local rates; the local rates here come from the cities' own pages.

Not confirmed: MW-2027 (the 2027 General Minimum Wage Order) was not yet at dir.ca.gov/Iwc/MW-2027.pdf (404 on 2026-11-03). Whether the Fast Food Council has changed the $20.00 fast food rate for 2027: the Labor Commissioner's FAQ shows only the April 1, 2024 rate. Labor Code section 1182.12 text not read: leginfo.legislature.ca.gov returned 403 to a plain request. Other local minimums (for example San Jose, Oakland, West Hollywood, unincorporated Los Angeles County) not checked; 2027 local rates set in July 2027 are not yet announced.

Minimum wage in every state

Paid family and medical leave

Checked Nov 3, 2026. Collecting contributions

California State Disability Insurance (SDI), run by the Employment Development Department (EDD), funds both Disability Insurance (DI) and Paid Family Leave (PFL) from one employee payroll deduction. The SDI withholding rate is 1.3% for 2026 and 1.4% for 2027, on all wages: there has been no taxable wage limit since January 1, 2024 (SB 951). Employees pay the whole contribution; employers withhold it, deposit it on the federal deposit schedule and report it on the quarterly DE 9 and DE 9C.

State Disability Insurance (SDI): Disability Insurance (DI) and Paid Family Leave (PFL)

Kind and agency

Disability. California Employment Development Department (EDD). California Unemployment Insurance Code (CUIC); PFL created by SB 1661 (2002).

Contribution rate

2027: 1.4% of wages One SDI rate covers both DI and PFL.
2026: 1.3% of wages One SDI rate covers both DI and PFL; EDD does not publish a separate PFL rate. By law the rate may be set each year at no more than 1.5% and no less than 0.1%, depending on the Disability Fund balance. source Public record

Wage base

2027: no dollar cap No cap: all wages are subject to SDI contributions.
2026: no dollar cap No cap: SB 951 removed the taxable wage limit and the maximum withholding per employee effective January 1, 2024. source Public record

Who pays

Employer: None. SDI is funded through a payroll deduction from employees' wages (UI and ETT are the employer-paid taxes). Employee: 100% of the contribution (1.3% of all wages in 2026, 1.4% in 2027). Yes. The employer withholds SDI from employee wages (it often shows as CASDI on paystubs) and pays it to the Disability Fund, or to an approved Voluntary Plan. source Public record

Small employers

None. No small employer exemption was found: California law requires employers to provide coverage for employees with payroll over $100 in a calendar quarter, with exceptions for some domestic workers, some government and nonprofit employees, interstate railroad employees and individuals claiming a religious exemption. source Public record

Private plans

Allowed. An employer may apply to EDD for approval of a Voluntary Plan (VP) for DI and PFL in place of SDI, with the consent of a majority of employees. The plan must provide all SDI benefits plus at least one better benefit, cannot cost employees more than SDI, and the employer must post a security deposit with EDD. Once approved, the employer stops sending SDI withholdings to EDD for covered employees, holds employee VP contributions in trust, and pays EDD a quarterly assessment. Procedures are in the Employers' Guide to Voluntary Plan Procedures (DE 2040). source Public record

Filing and payment

SDI withholdings are reported with UI, ETT and PIT on the quarterly Contribution Return and Report of Wages (DE 9) and its continuation (DE 9C); deposits are made with the Payroll Tax Deposit (DE 88). All returns, wage reports and deposits must be filed electronically. Due SDI deposits follow the employer's federal deposit schedule and the amount of California PIT withheld (next-day, semiweekly, monthly by the 15th, or quarterly). The DE 9 and DE 9C are due the first day of the month after the quarter and delinquent if not filed by the last day of that month (2026: April 30, July 31, November 2, 2026 and February 1, 2027). e-Services for Business source Public record

Benefits

DI: up to 52 weeks. PFL: up to 8 weeks in a 12-month period. About 70% to 90% of wages in the base period, depending on income (90% for lower earners, 70% at higher incomes), up to the maximum. Maximum $1,765 a week in 2026. source Public record

Recent and coming changes

• Jan 1, 2027 SDI withholding rate rises from 1.3% to 1.4% of all wages. source Public record
• Jan 1, 2024 SB 951 removed the SDI taxable wage limit and the maximum withholding per employee. source Public record

PFL is part of SDI, not a separate contribution: the first PFL benefits were issued July 1, 2004, after SB 1661 was enacted on September 25, 2002. EDD's 2026 maximum weekly benefit for DI and PFL is $1,765 (minimum $50).

Not confirmed: Start dates for SDI itself (contributions and DI benefits) were not found on a saved EDD page; only the PFL benefit start (July 1, 2004) is sourced. 2027 maximum weekly benefit amount for DI and PFL was not published on the EDD pages read (Quick Statistics shows calendar year 2026). CUIC sections on the SDI rate and Voluntary Plans were not read: leginfo.legislature.ca.gov returned 403, so the citation is to the code generally as EDD's DE 44 names it. The 2027 Employer's Guide (DE 44) was not yet posted; the 2026 guide (Rev. 52, 4-26) was used for filing rules and due dates.

Paid leave in every state

Sick leave and time off

Checked Nov 5, 2026. Paid sick leave

California's Healthy Workplaces, Healthy Families Act of 2014 requires every employer to give paid sick leave of at least one hour per 30 hours worked, and since January 1, 2024 employees must be allowed to use at least 40 hours or five days a year; cities such as San Francisco, Los Angeles, Oakland, Berkeley, Emeryville and San Diego require more. The California Family Rights Act gives up to 12 weeks of job-protected leave at employers with five or more employees (wage replacement comes from State Disability Insurance Paid Family Leave), and pregnancy disability leave adds up to four months. Earned vacation and PTO vest as wages, must be paid at separation, and cannot be forfeited under a use it or lose it policy.

Paid sick leave

The law

Healthy Workplaces, Healthy Families Act of 2014 (paid sick leave, Labor Code 245 to 249) source Public record

Employers covered

All employers, regardless of size; employees who work in California for the same employer for 30 or more days within a year are covered.

Employees not covered

Covered: part-time, per diem, temporary and in-home supportive services employees. Fully exempt: air carrier flight deck and cabin crew who receive at least equivalent compensated time off, retired annuitants working for governmental entities, railroad employees, and construction employees under a collective bargaining agreement with specified provisions. Employees under a qualifying collective bargaining agreement (paid sick days, overtime premium pay, and a regular rate at least 30 percent above the state minimum wage) are partly exempt.

How it builds up

At least 1 hour per 30 hours worked; another regular accrual schedule is allowed if it gives at least 24 hours by the 120th calendar day of employment and 40 hours by the 200th.

Yearly cap

The employer may limit use to 40 hours or five days a year (whichever is more, so an employee working 10 hour days may use 50 hours) and may cap the accrued balance at 80 hours or ten days. Before January 1, 2024 the limits were 24 hours or three days of use and 48 hours or six days of accrual.

Front-loading

Allowed: at least 40 hours or five days available at the beginning of each year of employment, calendar year or 12-month period (new hires: 24 hours by the 120th day and 40 hours by the 200th day); no accrual or carryover is then required.

When use can start

An employee may begin using paid sick leave after 90 days of employment; the employer may advance leave earlier.

Carryover

Accrued, unused leave carries over to the next year, subject to the 80 hour or ten day balance cap.

Allowed uses

Diagnosis, care, treatment or preventive care for the employee or a family member (parent, child, spouse, registered domestic partner, grandparent, grandchild, sibling or designated person); specified needs of a victim of a qualifying act of violence or a victim's family member (broader uses at employers with 25 or more employees); jury duty and court appearances as a witness (from January 1, 2025); attending certain court proceedings for crime victims (from January 1, 2026); outdoor agricultural employees may use it to avoid smoke, heat or flooding during a declared emergency. Under the kin care law (Labor Code 233), an employer that provides sick leave must allow at least six months' accrual to be used for these purposes.

Notice and documentation

Reasonable advance notice when the leave is foreseeable; notice as soon as practical when it is not. The employer may not deny leave solely for lack of a health care provider's certification. The employer may set a minimum increment of no more than two hours.

At the end of employment

Not required at separation unless the employer's policy provides it. An employee rehired within 12 months gets back accrued, unused leave, unless it was paid out under a PTO policy at termination.

PTO policies

Yes, if the PTO policy gives at least 40 hours or five days a year usable for the same purposes and meets the law's accrual, carryover and use rules. Plans in place before January 1, 2015 that meet the grandfather rule are deemed compliant.

Employer duties

Display the Labor Commissioner's paid sick leave poster; give most employees the Labor Code 2810.5 Notice to Employee with paid sick leave information; show available sick leave on the pay stub or a document issued the same day as the paycheck ('unlimited' is allowed for unlimited plans); keep records of leave earned and used for three years; pay sick leave taken no later than the next regular payday.

Enforcement

Labor Commissioner. Relief may include reinstatement, back pay, the sick days withheld and an administrative penalty: three times the dollar amount of sick days withheld or $250, whichever is greater, up to $4,000; $50 a day for other harm (such as discharge), up to $4,000. The Labor Commissioner may file a civil action and order the employer to pay the state up to $50 a day per employee whose rights were violated. Retaliation is barred (Labor Code 246.5).

Citation

California Labor Code sections 245 to 249 (paid sick days); Labor Code 233 (kin care), AB 1522 (2014); SB 616 (2023) raised the yearly amount to 40 hours or five days, in effect since Jul 1, 2015

Agency guidance

dir.ca.gov

Local laws: No general preemption: state law sets minimums and does not preempt local laws that give greater accrual or use, and employers must follow whichever law is more generous. Since January 1, 2024 (SB 616), local ordinances may not contradict state law on the lending of paid sick leave, pay stub statements, calculation of pay, notice for foreseeable leave, timing of payment, and payment at termination; on those points state law prevails. (Labor Code 249(d); SB 616 (2023)) source Public record

City and county paid sick leave laws

• City and County of San Francisco Feb 5, 2007 Paid Sick Leave Ordinance (Labor and Employment Code Article 11, approved by voters in 2006): 1 hour per 30 hours worked for all employees working in San Francisco; balance may be capped at 72 hours (40 hours at employers with fewer than 10 employees). source Public record
• City of Los Angeles Minimum Wage Ordinance paid sick leave (LAMC 187.04): 48 hours front-loaded or 1 hour per 30 hours worked; use may be limited to 48 hours a year; carryover may be capped at no less than 72 hours; no payout at separation. The Office of Wage Standards says SB 616 does not preempt the city's more stringent rules. source Public record
• City of Oakland Mar 2, 2015 Measure FF (Oakland Municipal Code 5.92.030): 1 hour per 30 hours worked in Oakland for employees working at least two hours a week there; balance up to 72 hours (40 hours at employers with fewer than 10 people); 90 day wait for new hires. source Public record
• City of Berkeley Paid Sick Leave Ordinance (BMC 13.100): 1 hour per 30 hours worked; employers must allow accrual of at least 72 hours a year, or 48 hours at small businesses with fewer than 25 employees. source Public record
• City of Emeryville Minimum Wage, Paid Sick Leave and Other Employment Standards ordinance: at least 48 hours of accruable paid sick leave at small businesses (55 or fewer employees in the city) and 72 hours at large businesses (56 or more). source Public record
• City of San Diego Earned Sick Leave and Minimum Wage Ordinance: 1 hour per 30 hours worked in the city; accrual may be capped at 80 hours, unused leave carries forward, and use may be limited to 40 hours a benefit year (or 40 hours front-loaded each benefit year). source Public record

Family and medical leave

The law

California Family Rights Act of 1993 (CFRA); also pregnancy disability leave under the Fair Employment and Housing Act, Government Code 12945.2 (CFRA); Government Code 12945 (pregnancy disability leave) source Public record

Employers covered

Employers with five or more employees (CFRA and pregnancy disability leave).

Who is eligible

CFRA: more than 12 months of service and at least 1,250 hours in the 12 months before leave. Pregnancy disability leave: no length of service or hours requirement.

How long

CFRA: up to 12 work weeks in a 12-month period. Pregnancy disability leave: up to four months, depending on the period of actual disability, and an eligible employee may take both pregnancy disability leave and CFRA leave related to the birth.

Reasons

CFRA: the employee's own serious health condition; the serious health condition of a child, spouse, domestic partner, parent, parent-in-law, grandparent, grandchild, sibling or designated person; bonding with a new child by birth, adoption or foster placement. Pregnancy disability leave: disability from pregnancy, childbirth or a related condition. Both guarantee reinstatement to the same or, in some cases, a comparable position.

Paid?

Unpaid under CFRA itself; employees may receive State Disability Insurance Paid Family Leave (or Disability Insurance for pregnancy disability) from the Employment Development Department, and may use accrued paid leave in some circumstances.

Wage replacement: State Disability Insurance (SDI): Disability Insurance (DI) and Paid Family Leave (PFL). Contribution rates and benefits

Vacation and PTO at the end of employment

Must be paid out Vacation is a form of wages that vests as it is earned. When employment ends for any reason, all earned and unused vacation must be paid at the final rate of pay in the final paycheck, unless a collective bargaining agreement provides otherwise. PTO that can be used for any purpose follows the same rules. Employers may cap accrual (once the cap is reached, no more accrues) and may set a valid waiting period before vacation is earned. (Labor Code 227.3) source Public record

"Use it or lose it" policies: barred.

Other leave the law requires

Recent and coming changes

• Jan 1, 2024 SB 616 raised the paid sick leave use minimum from 24 hours or three days to 40 hours or five days a year and the accrual cap from 48 hours or six days to 80 hours or ten days, and barred local ordinances from contradicting state rules on lending, pay stubs, pay calculation, notice, timing of payment and payment at termination. in effect source Public record
• Jan 1, 2025 Leave and protections for victims of violence moved from Labor Code 230 and 230.1 to the Fair Employment and Housing Act (Government Code 12945.8), enforced by the Civil Rights Department, and were extended to family members of victims; paid sick leave may be used for jury duty and witness appearances, and outdoor agricultural employees may use it to avoid smoke, heat or flooding during declared emergencies. in effect source Public record
• Jan 1, 2026 Crime victims and their family members may take time off, and use paid sick leave, to attend certain court proceedings (delinquency, release, plea, sentencing and postconviction proceedings); the protections moved from Labor Code 230.2 and 230.5 to Government Code 12945.8. in effect source Public record

What was checked: Checked the Labor Commissioner's paid sick leave FAQ (updated December 31, 2025), vacation FAQ and list of anti-retaliation laws, the Civil Rights Department's CFRA, pregnancy, bereavement, reproductive loss and survivors' leave guidance, the Secretary of State's time off to vote page, and city pages for San Francisco, Los Angeles, Oakland, Berkeley, Emeryville and San Diego. leginfo.legislature.ca.gov returns 403 to curl, so statute text (Labor Code 246, 248.5, 249, 1503, 1509, 1510; Elections Code 14000; Military and Veterans Code 394.5, 395.10) comes from the free government index and is cited at its leginfo URL. California law does not require private employers to give holidays off or holiday premium pay. Paid Family Leave wage replacement is part of State Disability Insurance, already on the site.

Not confirmed: Statute text on leginfo.legislature.ca.gov could not be read directly (403 to curl); Labor Code 245.5, 246.5, 247, 247.5 and Government Code 12945.2, 12945.6, 12945.7, 12945.8 were not read in the statute itself (facts come from the Labor Commissioner's and Civil Rights Department's guidance). Bill numbers for the 2025 victim leave move (believed to be AB 2499, 2024) and the 2026 crime victim court leave change were not confirmed in a primary source. Santa Monica's minimum wage and paid sick leave page (https://www.santamonica.gov/minimum-wage) returned a bot check; its ordinance is not listed. Los Angeles County (unincorporated areas): the Department of Consumer and Business Affairs minimum wage page and poster did not mention paid sick leave; whether the county requires more than state law was not confirmed. Other local ordinances (for example West Hollywood or hotel worker ordinances) were not checked. Effective dates of the Los Angeles, Berkeley, Emeryville and San Diego sick leave ordinances were not on the pages read. Civil Air Patrol leave: the employer size threshold in Labor Code 1501 was not read.

Federal law adds unpaid FMLA leave at employers with 50 or more employees and paid sick leave for federal contractors. Sick leave and time off in every state

Sales and use tax

Checked Nov 3, 2026

California's statewide sales and use tax rate is 7.25 percent (6.00 percent state plus a uniform 1.25 percent local rate), and most areas add district taxes of 0.10 to 2.00 percent, all reported to the California Department of Tax and Fee Administration (CDTFA) on one return. A retailer outside California must register and collect use tax once its combined sales of tangible personal property for delivery in California, with those of related persons, exceed $500,000 in the preceding or current calendar year; above that amount it must also collect district use tax for every district.

State rate

7.25%, since Jan 1, 2017 Revenue and Taxation Code sections 6051 and 6201 (state General Fund portion), with other state portions under sections 6051.2, 6051.3 and 6051.15 and Constitution article XIII section 35; the 1.25 percent local portion under sections 7202 and 7203
Sales of certain food products for human consumption and prescription medicines are exempt. source Public record

Local taxes

Yes, collected by the state. The 7.25 percent statewide rate already includes 1.25 percent for cities, counties and county transportation funds. On top of it, counties, cities and towns may impose one or more district taxes ranging from 0.10 to 2.00 percent; sellers report and pay the applicable district taxes with their state return, and CDTFA transmits them to the districts. Since April 25, 2019 any retailer, in or outside California, whose combined California sales with related persons exceed $500,000 in the preceding or current calendar year must collect district use tax on sales delivered into every district that imposes one (Revenue and Taxation Code section 7262). CDTFA publishes rate files by city and county each quarter (current file: rates effective October 1, 2026). Rate lookup source Public record

Remote sellers

$500,000; counts other: total combined sales of tangible personal property for delivery in California by the retailer and all persons related to it (IRC section 267(b)), including sales for resale and sales facilitated through a marketplace sales; preceding or current calendar year; since Apr 1, 2019. When combined sales first exceed $500,000: in CDTFA's example, a remote seller whose sales passed $500,000 on July 7, 2019 had to register that day and begin collecting state, local and district use tax. The statute requires sales that exceed $500,000. CDTFA's FAQ example counts sales for resale toward the threshold, and its marketplace guide says marketplace-facilitated sales count. Retailers with a physical presence in California (inventory, offices, representatives, leased equipment) are engaged in business regardless of the threshold. leginfo.legislature.ca.gov refused automated reads (403); the statute text was read in CDTFA's annotated law guide. source Public record

Marketplace facilitators

Must collect (A marketplace facilitator that is registered or required to be registered with CDTFA (physical presence, or more than $500,000 of combined sales for delivery in California counting facilitated sales) is the retailer for facilitated sales and collects the tax on them.), since Oct 1, 2019 source Public record

Streamlined Sales Tax

Not a member source Public record

Registration

Seller's permit (retailers selling in California); Certificate of Registration, Use Tax (out-of-state retailers engaged in business in California), No fee; CDTFA may require a security deposit in some circumstances Register Out-of-state sellers register through the same CDTFA Online Services registration, for a Certificate of Registration, Use Tax (or a seller's permit). A temporary seller's permit covers sales lasting no longer than 90 days at one location. Use tax registration for buyers: a business not required to hold a seller's permit must register as a qualified purchaser and file a yearly use tax return (due April 15) if, from January 1, 2024 through December 31, 2028, it makes more than $10,000 a calendar year in purchases subject to use tax on which no California retailer collected the tax (Revenue and Taxation Code section 6225, as amended by AB 1097); on January 1, 2029 the test reverts to at least $100,000 in gross receipts a year. source Public record

Filing

• quarterly prepay: required for businesses with average taxable sales of $17,000 or more per month; CDTFA notifies the business in writing
• quarterly: assigned by CDTFA based on reported sales tax or anticipated taxable sales at registration
• monthly: assigned by CDTFA based on reported sales tax or anticipated taxable sales at registration
• fiscal yearly or yearly: assigned by CDTFA based on reported sales tax or anticipated taxable sales at registration

Due: Returns are due the last day of the month after the reporting period (for example, July 31 for a period ending June 30; January 31 for a yearly sales tax account). Quarterly prepay accounts make two prepayments a quarter, due on the 24th: for example, the January prepayment by February 24 and the February prepayment by March 24; in the second quarter the prepayment for May 1 through June 15 is due June 24. Yearly returns for qualified purchasers and consumer use tax accounts are due April 15. A due date on a weekend or state holiday moves to the next business day.
Electronic filing: Electronic funds transfer is required for businesses that pay an average of $10,000 per month in sales and use taxes; returns can be filed through CDTFA Online Services.
CDTFA Online Services source Public record

Certificates

Resale: No specific form is required: a resale certificate in any form is valid if it has the elements CDTFA lists (purchaser's name and address, seller's permit number, description of the property, a statement that it is for resale, date and signature). CDTFA-230, General Resale Certificate, may be used. See Regulation 1668.
Exemptions: Exempt sales (for example certain food products, sales to the U.S. government and prescription medicines) are described in CDTFA publication 61. source Public record

Recent and coming changes

• Oct 1, 2026 Los Angeles County Measure ER, approved June 2, 2026, adds a 0.500 percent countywide district tax: the unincorporated county rate goes from 9.750 to 10.250 percent, with increases in each city in the county; several other cities and counties also changed rates the same day. source Public record
• Jan 1, 2029 The qualified purchaser use tax registration test (more than $10,000 a year in purchases subject to use tax, in place since January 1, 2024 under AB 1097) reverts to the earlier test of at least $100,000 in gross receipts a year. source Public record

Publication 73 (Your California Seller's Permit) cited here is the October 2026 edition. Remote sellers below $500,000 with no physical presence may still register voluntarily for a Certificate of Registration, Use Tax.

Not confirmed: Vendor discount: none found on the CDTFA pages read; not confirmed from a primary source, so left null. Whether CDTFA accepts the Streamlined Sales Tax or Multistate Tax Commission resale certificates: CDTFA says any document with the required elements is acceptable, but no CDTFA statement naming either form was found. Dollar thresholds for monthly, quarterly and yearly assignment: CDTFA's filing-dates page says frequency is assigned from reported or anticipated sales but publishes no thresholds except the $17,000 a month prepayment test. Whether electronic filing of returns is mandatory for all sales tax accounts: CDTFA pages read describe online filing and an EFT payment requirement, but no general e-file mandate. leginfo.legislature.ca.gov returned 403 to automated reads; statute text was taken from CDTFA's law guide pages instead.

Sales tax in every state

Credit card surcharges

Checked Nov 4, 2026. Surcharges barred

California law bars a retailer from adding a surcharge to a consumer's purchase when the consumer pays by credit card (Civil Code section 1748.1), though a retailer may offer a discount, open to all buyers, for paying by cash, check or other non-card means. In 2018 the Ninth Circuit held the ban unconstitutional only as applied to five plaintiff businesses and their specific pricing practices, so the ban still stands for everyone else. Where a surcharge is added to a taxable sale, the CDTFA says sales tax generally applies to the surcharge too.

The rule

No retailer in a sales, service or lease transaction with a consumer may impose a surcharge on a cardholder who elects to use a credit card instead of paying by cash, check or similar means. Charges for third-party credit card guarantee services added to the cash price count as surcharges even if paid to the third party or charged separately. source Public record

Cards covered

Credit cards. The ban names credit cards only; debit cards appear in the statute only in the utility exception.

Exceptions

Does not apply to charges for payment by credit or debit card made by an electrical, gas or water corporation and approved by the Public Utilities Commission under Public Utilities Code section 755 (subdivision (f)). A consumer is not treated as electing to use a credit card when the retailer accepts only credit cards for telephone orders and only cash at its store (subdivision (c)). Separate statutes let public agencies and courts add card fees, among them Government Code section 6159(h)(1), Code of Civil Procedure section 1010.5 and Food and Agricultural Code section 31255(b), as listed by the Ninth Circuit.

Enforcement

Private right of action: a retailer who willfully imposes a surcharge and does not repay it within 30 days of the cardholder's written demand by certified mail is liable for three times actual damages, plus the cardholder's reasonable attorney's fees and costs; the action may be brought in small claims court if within its limits.

The law

Cal. Civ. Code 1748.1, 1985; last amended by Stats. 2005, ch. 426, effective January 1, 2006

Agency guidance

oag.ca.gov

Cash discounts

A retailer may offer discounts to induce payment by cash, check or other means not involving a credit card, provided the discount is offered to all prospective buyers. (Cal. Civ. Code 1748.1(a)) source Public record

Sales tax on the surcharge

Depends Depends on whether the sale is taxable. The CDTFA says a surcharge separately added to a taxable sale, whether a flat fee or a percentage, is generally taxable too, and lists a merchant card processing fee as one such surcharge (informational letter L-903, August 2023); its annotation 295.2000 (11/14/91) treats a 2 percent credit card surcharge as part of gross receipts. Regulation 1643 excludes from gross receipts a debit card charge that is separately stated, avoidable by not using the debit card, not a percentage of the purchase and reasonably related to the retailer's cost. source Public record

Court rulings

• Jan 3, 2018 Italian Colors Restaurant v. Becerra, No. 15-15873 (U.S. Court of Appeals for the Ninth Circuit): Held that Civil Code section 1748.1 regulates speech and violates the First Amendment, but only as applied to the five plaintiff businesses; the court narrowed the district court's injunction to those plaintiffs and only to the specific pricing practice each declared it would use (for example, stating the difference between cash and card prices as a surcharge). It did not reach the vagueness claim. The ban therefore remains in force for every other retailer, and the statute's private right of action remains. source Public record

Price display and fee laws

• Honest Pricing Law (Hidden Fees Statute), SB 478, as amended by SB 1524 (Cal. Civ. Code 1770(a)(29)), from Jul 1, 2024: Bars most businesses from advertising or listing a price that leaves out required fees, other than certain government taxes and shipping. The Attorney General's FAQ says a credit card processing fee generally need not be included in the advertised price, because it is not mandatory if the customer can avoid it by paying another way, such as cash; if the business accepts only credit cards, the card fee is mandatory and must be in the advertised price. Mandatory fees of restaurants, bars and some food vendors are exempt if clearly and conspicuously displayed wherever prices are shown (SB 1524). The FAQ does not discuss Civil Code 1748.1, which separately bars credit card surcharges. source Public record

What was checked: Checked: the Ninth Circuit's opinion in Italian Colors (which quotes Civil Code 1748.1(a), (b), (e) and (f)); the 2014 introduced text of SB 1379 on the Legislature's archive site, which shows the full existing text of section 1748.1 as of 2014 (subdivisions (a) to (f)); the Attorney General's SB 478 hidden fees page and FAQ; and CDTFA letter L-903, annotation 295.2000 and Regulation 1643. The current statute on leginfo.legislature.ca.gov refused automated reads, so it was read in a browser; it matches the text the Ninth Circuit quoted and was last amended in 2005. SB 1379 (2014) proposed only technical changes; the Ninth Circuit in 2018 still quoted the earlier wording. A 2026 bill found in a search (AB 2746) concerns medical credit cards, not surcharges. No Attorney General statement declining to enforce section 1748.1 was found; the Ninth Circuit noted the Deputy Attorney General refused to stipulate that California would not enforce it.

Not confirmed: Enacting bill and effective date of the 1985 surcharge ban not confirmed from a primary source. Whether California law reaches debit card surcharges by retailers is not stated in the sources read; section 1748.1(a) names credit cards only. Effective date of the SB 1524 restaurant exemption not confirmed from the bill; the AG page says SB 478 applies beginning July 1, 2024 and was amended by SB 1524.

Federal law and the card networks' own rules apply in every state. Surcharge rules in every state

Pass-through entity tax

Checked Nov 3, 2026. Pass-through entity (PTE) elective tax

A partnership or S corporation (not a publicly traded partnership or an entity permitted or required to be in a combined reporting group) may elect each year, on its timely filed original return with Form FTB 3804, to pay a 9.3 percent tax on the income of its consenting individual, fiduciary, estate and trust owners. A June 15 payment of the greater of $1,000 or 50 percent of the prior year's elective tax is due during the election year: through 2025 missing it voids the election; for 2026 to 2030 the election still stands but the owners' credit is cut by 12.5 percent of their share of the unpaid amount. Consenting owners claim a nonrefundable credit on Form FTB 3804-CR, carried forward up to five years.

Law

Revenue and Taxation Code Part 10.4 (for example section 19902) for 2021 to 2025; Part 10.4.1 (sections 19910, 19912, 19914 and 19916) for 2026 to 2030; owner credits R&TC sections 17052.10 and 17052.11. AB 150 (Small Business Relief Act, 2021 to 2022 session), changed by SB 113 and SB 851; extended by SB 132, signed June 27, 2025. First tax year 2021. Ends: Taxable years beginning before January 1, 2031 (last year 2030). source Public record

Who can elect

An entity taxed as a partnership or S corporation. Excluded: publicly traded partnerships, and an entity permitted or required to be in a combined reporting group. A disregarded entity cannot be a qualified entity. The entity's partners, shareholders or members must be exclusively corporations as defined in R&TC section 23038 or taxpayers as defined in R&TC section 17004. Only qualified taxpayers are included and get the credit: an individual, fiduciary, estate or trust subject to California personal income tax (or a disregarded single member LLC owned by one) that consents to include all of its pro rata or distributive share and guaranteed payments. Owners who do not consent do not stop the election; their income is left out. A qualified entity may have a partnership as a partner, member or shareholder, but a partnership cannot claim the credit, and a disregarded single member LLC owned by a partnership is not a qualified taxpayer. source Public record

Election

On the entity's timely filed original return (Form 100S, 565 or 568): attach a completed Form FTB 3804 and enter the elective tax on the designated line. It cannot be made on an amended return; it can be made or revoked on a superseding return. The qualified entity makes the election; each owner consents for its own share. Deadline: The timely filed original return. Also a payment by June 15 of the election year (greater of $1,000 or 50 percent of the prior year's elective tax): for 2022 to 2025 an entity that misses or underpays it cannot elect; for 2026 to 2030 it may still elect, but its qualified taxpayers' credit is reduced by 12.5 percent of their pro rata share of the unpaid amount. Made each year. No. Once made the election is irrevocable for that year and binds all consenting and nonconsenting owners (except on a superseding return). source Public record

Rate

2026: 9.3% Same as 2025 (qualified net income of consenting qualified taxpayers).
2025: 9.3% Qualified net income: the sum of each consenting qualified taxpayer's pro rata or distributive share of income and guaranteed payments subject to California personal income tax. For nonresident owners, only the share subject to California tax under the sourcing rules. source Public record

Estimated payments

Two payments, not quarterly estimates. The elective tax is not included in the entity's own estimated tax. Pay by Web Pay, electronic funds withdrawal or the FTB 3893 voucher, kept separate from the entity's other payments. Failure to make the required payments may result in penalties and interest. Payment 1: on or before June 15 of the election year, the greater of $1,000 or 50 percent of the elective tax paid for the prior year (next business day if June 15 falls on a weekend or holiday). Payment 2: the rest by the original due date of the return without extensions (March 15, 2027 for calendar year 2026). source Public record

Return

Form FTB 3804 (Pass-Through Entity Elective Tax Calculation) attached to Form 100S, 565 or 568; payments on Form FTB 3893. Due 15th day of the 3rd month after the close of the tax year (March 16, 2026 for a calendar 2025 S corporation). Partnerships and LLCs taxed as partnerships: 15th day of the 10th month after the close of the tax year. S corporations: 15th day of the 9th month. An extension does not extend the second payment. source Public record

Owner credit

Credit against personal income tax equal to 9.3 percent of the owner's share included in qualified net income, claimed on Form FTB 3804-CR with Form 540, 540NR or 541. It is applied after the other state tax credit. Owners add back elective tax the entity deducted federally. No. Up to five years, or until exhausted. A qualified taxpayer may be a resident, nonresident or part-year resident; the credit is claimed only on the owner's own return, not on a group nonresident return. The election does not change the 7 percent nonresident withholding requirement. Credit for other states' PTET: Schedule S instructions: a resident owner may be eligible for the other state tax credit for its pro rata share of PTE elective taxes paid to another state if R&TC sections 18001 and 18006 are met. FTB does not list the states. source Public record

Recent and coming changes

• Jun 27, 2025 SB 132 signed: extends the elective tax and credit to taxable years beginning on or after January 1, 2026, and before January 1, 2031 (new Part 10.4.1 and R&TC section 17052.11). source Public record
• Jan 1, 2026 For 2026 to 2030 a missed or short June 15 payment no longer voids the election; instead each qualified taxpayer's credit is reduced by 12.5 percent of its pro rata share of the unpaid amount, figured on the 2026 Form FTB 3804. source Public record
• Jun 27, 2025 SB 132 also allows the credit where an electing fiscal year entity's taxable year begins differently from its owner's. source Public record

The June 15 payment is still due for 2026 to 2030; only the consequence of missing it changed. An entity whose short taxable year does not include June 15 is not subject to the June 15 payment for that year. The $5,000,000 business credit limit does not apply to this credit for taxable years beginning in 2024 through 2026.

Not confirmed: The bill texts and statute sections on leginfo.legislature.ca.gov returned 403 to automated reads, so SB 132, AB 150 and the R&TC sections were not read; FTB pages were used. The enactment years of SB 113 and SB 851 are not stated on the FTB pages read (both link to the 2021 to 2022 session).

Pass-through entity tax in every state

Conformity to the 2025 federal tax law

Checked Nov 3, 2026. Business tax: corporate franchise or income tax

California follows the Internal Revenue Code as of a fixed date: SB 711 (Chapter 231, Statutes of 2025), enacted October 1, 2025, moved that date from January 1, 2015, to January 1, 2025, for taxable years beginning on or after January 1, 2025, for both the personal income tax and the corporation tax. It does not pick up federal law enacted after that date, so in general California does not conform to Public Law 119-21. The biggest differences: no bonus depreciation, California's own section 179 limits, no section 174A expensing, no business interest limit under section 163(j), and none of the new federal deductions for tips, overtime, car loan interest or seniors.

Follows the Code

Fixed date, Code as of Jan 1, 2025. Revenue and Taxation Code 17024.5 (personal income tax) and 23051.5 (corporations), as changed by SB 711 (Chapter 231, Statutes of 2025)
The January 1, 2025 date applies to taxable years beginning on or after January 1, 2025; earlier years use January 1, 2015. FTB says that under the new date there are continuing differences, and California does not always adopt every federal change. SB 1435 (Chapter 236, Statutes of 2026), enacted September 14, 2026, made follow-up changes to SB 711, also for taxable years beginning on or after January 1, 2025. source Public record

Starting point

Individuals: federal adjusted gross income
Corporations: federal taxable income source Public record

Response to Public Law 119-21

None yet. Years: 2025 and 2026
SB 711 (Chapter 231, Statutes of 2025), enacted October 1, 2025, does not include federal tax law enacted after January 1, 2025, such as Public Law 119-21. The 2025 Form 540 and Form 100 booklets say that in general California does not conform to the OBBBA, and the Schedule CA (540) instructions carry the adjustments. Corporations start Form 100 from federal Form 1120, line 28 (federal reconciliation method) or use the California computation method. source Public record

Provision by provision

Other differences

• Section 1202 small business stock: California does not conform to the federal exclusion, so the Public Law 119-21 expansion does not apply. source Public record
• Opportunity zones: California does not conform to the deferral and exclusion of gains invested in qualified opportunity zone funds. source Public record
• Itemized deduction limit: California keeps its own phaseout of itemized deductions and does not conform to the Public Law 119-21 change to the overall limit. source Public record
• State and local tax deduction: California does not allow a deduction for state or local income taxes and does not conform to the federal limit on the deduction. source Public record

Guidance from the state

• Summary of Federal Income Tax Changes (FTB Legislative Services, 2025 entries for Public Law 119-21, section by section)
• Aug 25, 2026 California Conformity to Federal Law
• Tax News November 2025: Senate Bill 711, Federal Conformity Bill
• Tax News October 2026: Senate Bill 1435, Specified Date Code Maintenance/Conformity 2025
• Bill Analysis, SB 711, Conformity Act of 2025 (final)

Recent and coming changes

• Jan 1, 2025 SB 1435 (Chapter 236, Statutes of 2026), enacted September 14, 2026: code maintenance after SB 711; the personal income tax law no longer follows IRC section 163(j), and California keeps its $3,400 EITC investment income limit; applies to taxable years beginning on or after January 1, 2025. source Public record

FTB analyses give the revenue cost of conforming to the individual deductions for 2026 to 2027: tips $600 million, overtime $2 billion, car loan interest $490 million. The Tax News items in guidance are the November 2025 and October 2026 monthly issues.

Not confirmed: The Revenue and Taxation Code sections that set the specified date (sections 17024.5 and 23051.5) and the SB 711 and SB 1435 bill text were not read: leginfo.legislature.ca.gov returned 403 to automated requests. No 2026 California bill to adopt the federal tips, overtime or car loan deductions was checked, because the legislature's site was blocked; FTB's Tax News through October 2026 reports none enacted. The exact California section 179 dollar limit for 2025 and 2026 was not confirmed from a saved FTB source. How California treats research and experimental expenditures under section 174 after SB 711 (deduct or amortize, and any transition) was not traced beyond the FTB statements quoted; the SB 711 analysis table marks the 2017 amortization change as not conformed, which matches the Form 100 booklet.

Conformity in every state

Pay in job postings

Checked Nov 2, 2026. Pay required in job postings

Since January 1, 2023, an employer with 15 or more employees must include the pay scale in every job posting, and a third party it uses to post must include it too. Since January 1, 2026, the pay scale is a good faith estimate of the salary or hourly wage range the employer reasonably expects to pay for the position upon hire. Every employer, whatever its size, must give the pay scale to an applicant on reasonable request and to an employee, on request, for the employee's current position.

Salary history ban: Yes (Cal. Lab. Code 432.3(a), (b)). An employer may not seek an applicant's salary history information or rely on it in deciding whether to hire or what to pay; it may ask about the applicant's salary expectation, and may consider salary history the applicant discloses voluntarily and without prompting. source Public record

What was checked: Most recent change: SB 642, effective January 1, 2026 (good faith estimate upon hire). No later change is pending: in the Legislature's bulk data as of November 1, 2026, the only version of Labor Code 432.3 is the one amended by SB 642, and the 2025 to 2026 session has ended. No city or county ordinance requiring pay in postings was found.

Not confirmed: leginfo.legislature.ca.gov (statute and bill pages) returned a Cloudflare check; the statute and chaptered bill texts were read from the Legislature's bulk data files instead. A person may want to open the leginfo pages cited to confirm. Local ordinances: no California city or county posting ordinance was found, but city codes were not checked one by one. San Francisco's Parity in Pay Ordinance pages (sf.gov returned 404, codelibrary.amlegal.com returned 403) could not be read to confirm it covers salary history only.

Pay transparency rules in every state

For tax professionals

Checked Nov 3, 2026. Franchise Tax Board (FTB)

FTB's power of attorney is FTB 3520-PIT for individuals, estates and trusts or FTB 3520-BE for businesses, and FTB says it only accepts its own POA declarations, so the federal Form 2848 does not work for representation. Paid preparers who are not California CPAs, attorneys, enrolled agents or specified bank and trust officials must register with the California Tax Education Council (CTEC). Preparers who prepare more than 100 individual returns and use software for one or more must e-file current year individual returns; a client who elects paper signs FTB 8454, which the preparer keeps.

Power of attorney

FTB 3520-PIT, Individual or Fiduciary Power of Attorney Declaration (individuals, sole proprietors, estates and trusts); FTB 3520-BE, Business Entity or Group Nonresident Power of Attorney Declaration (businesses). Individuals only; the declaration names the person, not the firm. Representatives give any California CPA, State Bar, CTEC, enrolled agent or PTIN number they have, and may leave these blank if they have none. Representation and confidential information on all FTB matters for the years checked, or all years (previous, current and future up to the expiration date). Optional added powers: add representatives, sign returns (incapacity or continuous absence from the U.S. only), receive but not endorse refund checks, waive the statute of limitations, and execute settlement and closing agreements in extenuating circumstances. Online through MyFTB (services menu, File a Power of Attorney), or by mail to POA/TIA Unit, Franchise Tax Board, PO Box 2828, Rancho Cordova CA 95741-2828. FTB does not accept electronic or stamped signatures. Processing: Generally 3 weeks; FTB sends the taxpayer a letter when it approves or denies the POA. Generally lasts 6 years from signing; to extend it another 6 years, submit a new POA declaration. form source Public record

Federal Form 2848

Not accepted FTB says it only accepts its own POA declarations (FTB 3520-PIT and FTB 3520-BE). The one exception found: FTB 3516 (request for a copy of a return) lists an IRS power of attorney stating that it applies to FTB as acceptable authorization to receive the copy. source Public record

Information only

FTB 3534, Tax Information Authorization (revoke with FTB 3535). Lets a person review some confidential information (estimated payments, notices, account status and history) but not act for the taxpayer. Generally lasts 13 months unless revoked; tax professionals can renew it online through MyFTB, taxpayers must submit a new form. On the return: Third Party Designee on Form 540: "Do you want to allow another person to discuss this tax return with us?" The designee can supply missing information, ask about processing and refund status, receive copies of notices or transcripts related to the return, and respond to certain notices, but cannot represent the taxpayer. It ends no later than the due date (without extensions) of the next year's return. source Public record

Preparer registration

Required. CTEC Registered Tax Preparer (CRTP). Any non-exempt person who, for a fee or other consideration, prepares or assists with state or federal income tax returns, assumes final responsibility for them, or offers these services; preparing includes inputting tax data into a computer. Exempt: California CPAs, enrolled agents, attorneys who are members of the California State Bar, and specified banking or trust officials. Fee: New registrants: $100 nonrefundable application fee plus a $2 processing fee, and the $33 registration fee plus a $2 processing fee. Renewal: $33 plus $2 ($35) before October 31 each year; a $55 late fee from November 1 to January 15, after which the registration expires. A 60-hour qualifying education course from a CTEC approved provider within the past 18 months, a $5,000 tax preparer bond, a PTIN and an approved Live Scan; then at least 20 hours of continuing education each year (10 federal tax law, 3 federal tax update, 2 ethics, 5 California tax law). California Tax Education Council (CTEC). program source Public record

Preparer ID on returns

A paid preparer must sign and print the preparer's name, phone number and identification number on Form 540; the booklet cites the IRS requirement that a paid preparer get and use a PTIN. No separate state preparer number is used on the return. PTIN: required. source Public record

E-file mandate for preparers

Preparers who prepare more than 100 individual income tax returns in a year and prepare 1 or more using tax preparation software; returns prepared by multiple preparers or offices in the same business are counted together. All current year individual income tax returns. Fiduciary returns, prior year returns and amended individual returns are not covered by the preparer mandate. Separately, business entities that prepare an original or amended return using tax preparation software must e-file it; FTB may grant a business entity e-file waiver. Client opt-out: FTB 8454, e-file Opt-Out Record for Individuals: records the client's election not to e-file (or the preparer's reasonable cause) and is kept in the preparer's records, not mailed to FTB. The law has no preparer waiver from the mandate. Penalty: $50 per return filed on paper that should have been e-filed. source Public record

Transcripts and account records

Online in MyFTB for a representative with an approved POA or TIA (account history, returns filed, payments, wage and withholding, and, with full access under a POA, images of returns). Paper copies of filed returns by FTB 3516 mailed with payment to Data Storage Section, Franchise Tax Board, PO Box 1570, Rancho Cordova CA 95741-1570. FTB 3516, Request for Copy of Personal Income or Fiduciary Tax Return (page 2 covers corporation, exempt organization, partnership and LLC returns). Who can ask: The taxpayer, or a person with authorization: a signed taxpayer letter, a current FTB 3520 POA, an IRS power of attorney stating that it applies to FTB, or a copy of FTB 3516 signed by the taxpayer. MyFTB: notices, balances, tax year details, payment history, list of returns filed, wage and withholding for all tax years at full access. FTB 3516: copies of filed returns; FTB keeps personal income tax returns for three and a half years from filing. Fee: $20 for each tax year requested on FTB 3516 (no charge for a personal income tax return for a year in which the taxpayer was a victim of a designated disaster); MyFTB viewing is free. Turnaround: FTB 3516: a response within 30 days. Online for representatives: Yes: a tax professional with a MyFTB account can view client account records online once a POA or TIA is approved; return images need full access under a POA. request source Public record

Online access for professionals

MyFTB (tax professional account). With limited access: notices from the last 12 months, chat and secure messages. With full access: all-year notices, balances and tax year details, payments and credits, California wage and withholding (individuals), payment history, list of returns filed, proposed assessments, liens and withholding orders, FTB 1099s, nonresident withholding waivers and exemption applications. POA holders with full access can also view return images, update contact information, protest a proposed assessment, request status letters and revivor certificates, request innocent joint filer relief and submit an offer in compromise. Tax professionals can also submit and renew POAs and TIAs online. The professional registers a MyFTB account with a professional ID number; a PTIN registrant must prove current employment with a credentialed tax professional unless an active CPA, Bar or EA credential or current CTEC registration applies. Limited online access is granted when FTB approves a POA or TIA; full online access must be authorized by the taxpayer, which can be requested when the POA is submitted. source Public record

Practitioner line

Tax Practitioner Hotline 916-845-7057; e-file Help Desk 916-845-0353. Weekdays, 8 AM to 5 PM. source Public record

Recent and coming changes

• Oct 1, 2025 SB 711 moved California's Internal Revenue Code conformity date to January 1, 2025, so federal changes that lowered the e-filing threshold for corporation, partnership and exempt organization returns now apply to California source Public record
• Dec 31, 2023 POA declarations filed on or before January 1, 2018 expired; continuing relationships need a new declaration source Public record

This file covers FTB (income and franchise tax). The California Department of Tax and Fee Administration (sales and use tax) and the Employment Development Department (payroll taxes) have their own authorization forms and portals, not covered here. FTB's tax professional page says its call center agents will not communicate with AI assistants.

Not confirmed: R&TC 18621.9 (preparer e-file mandate), 19170 (penalty) and the preparer identification number statutes: leginfo.legislature.ca.gov returned a Cloudflare challenge, so the statute text was not read; the mandate, opt-out and $50 penalty rest on FTB's pages and Pub. 1345. Penalty for omitting the preparer identification number on a California return: not stated in the FTB pages read. CDTFA and EDD power of attorney forms and whether they accept the federal Form 2848: not researched.

Rules for tax professionals in every state

Federal tax data sharing

25 IRS data-sharing agreements with agencies in California, for any purpose (TIGTA, as of March 2026) source Public record; FUTA credit certified to the IRS by California Employment Development Department source Public record; the workforce agency signed the IRS Questionable Employment Tax Practices (QETP) agreement in 2007 source Public record; in the IRS State Reverse File Match pilot, 2007 to 2008 source Public record. How the IRS shares tax data with the states

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