Bill > AB1219

This bill amends California's personal income tax rates for taxable years beginning on or after January 1, 2025, and before January 1, 2030, by modifying the tax brackets and rates for both individual residents and heads of households. For standard individual residents, the bill changes the existing tax structure from rates of 1%, 2%, 4%, 6%, 8%, and 9.3% to new rates of 1%, 3%, 5%, 7%, and 9.3%, with adjusted income brackets. For heads of households, similar changes are implemented, with new income thresholds and corresponding tax rates. The bill raises the lower income brackets significantly, which means taxpayers will pay lower percentages on lower levels of income compared to the previous tax structure. For example, for standard individual residents, the first tax bracket now covers income up to $25,499 (taxed at 1%), compared to the previous bracket of up to $3,650. The bill takes effect immediately as a tax levy, which means it can be implemented right away, and it is intended to provide potential tax relief by adjusting income tax rates and brackets. The changes are set to expire on January 1, 2030, after which the tax rates would revert to their previous structure.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1219