Bill > AB1130

This bill amends Section 17041 of the Revenue and Taxation Code to adjust California's income tax rates, specifically for taxable income exceeding $500,000. For individuals filing as a single filer or head of household, the portion of their taxable income above $500,000 will now be taxed at a rate of 10.3 percent, an increase from the previous 9.3 percent rate. This change applies to taxable years beginning on or after January 1, 2011, and the bill also clarifies that the income tax brackets will be recomputed annually for inflation adjustments, but this specific bracket modification will still be subject to that recomputation. The bill also includes provisions for nonresidents and part-year residents, as well as estates and trusts, to ensure their tax liability is calculated consistently with these new rates. Finally, this act is declared to be a tax levy and will take effect immediately.