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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4436
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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We just moved back to CA after being away for nine years.

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We just moved back to CA after being away for nine years. We need a CA CPA but have an initial question. What is the general formula for determining the CA State Income Tax?

Rakhi Vasavada :

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you. Kindly remain online as I prepare your reply.

Rakhi Vasavada :

Normally the tax rate is a certain % of your income with the State charges and it is flat % of your income and it varies on your income levels and your filing status.

Rakhi Vasavada :

For 2013, --- California Income Tax Rates as of 2013 for single and married filing separately taxpayers:

Rakhi Vasavada :

1% on the first $7,455 of taxable income.
2% on taxable income between $7,456 and $17,676.
4% on taxable income between $17,677 and $27,897.
6% on taxable income between $27,898 and $38,726.
8% on taxable income between $38,727 and $48,942.
9.3% on taxable income between $48,943 and 250,000.
10.3% on taxable income between $250,001 and 300,000.
11.3% on taxable income between $300,001 and $500,000.
12.3% on taxable income between $500,001 and $1,000,000.
13.3% on taxable income of $1,000,001 and above.

Rakhi Vasavada :

You will arrive at your taxable income and then apply the above % to it as CA State Tax.

Rakhi Vasavada :

What is your annual "taxable" income ?

Customer:

Sorry, I didn't tell you I am married and we file jointly.

Customer:

Roughly $130K

Rakhi Vasavada :

So, your CPA is correct. The following rate would apply.

9.3% on taxable income between $48,943 and 250,000.

Rakhi Vasavada :

I agree that it is awfully high, but CA has one of the highest rates for State tax.

Customer:

Is there much of a difference if I file jointly with my husband and our combined income is roughly $130K?

Rakhi Vasavada :

No, there wont be much difference. The rate would remain same.

Rakhi Vasavada :

Do you read my reply ? I had lost connectivity for a while...!

Rakhi Vasavada :

No, there wont be much difference. The rate would remain same.

Rakhi Vasavada :

Hello are you there ? Can you read my reply ?

Rakhi Vasavada :

I am more than sure this would help. You may please leave a positive rating if this helped as this is the only way we are compensated for helping you. Alternatively, please feel absolutely free to revert back with a reply if you need further assistance.

Warm Regards,

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