Bill > AB2591

This bill, known as the Taxing Californians into Poverty Protection Act, proposes to change how California's personal income tax standard deduction is calculated, aiming to prevent the tax system from pushing low-income individuals and families below the federal poverty level. Starting July 1, 2027, instead of fixed dollar amounts, the standard deduction will be directly tied to the federal poverty level, which is a measure of income used to determine eligibility for certain programs and is set by the U.S. Office of Management and Budget based on U.S. Bureau of the Census data. Specifically, the standard deduction will equal the federal poverty line for a household of one person for individuals not filing as head of household, surviving spouse, or married filing jointly; it will equal the federal poverty line for a household of two for heads of household; and it will equal the federal poverty line for the actual number of people in the household for surviving spouses and married couples filing jointly. The bill also mandates that the Franchise Tax Board will publish these poverty line amounts annually on its website for tax purposes and will take effect immediately as a tax levy, meaning it will be implemented without delay.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2591