State Tax Profile

Tax Basis Rate Agency
Corporation Income or Bank and Corporation Franchise Tax
Combined net income apportioned to California
8.84% Franchise Tax Board
Sales and Use Tax (state portion)
Receipts from sales or lease of taxable items
7.25 - 9.25%
California State Board of Equalization
Unemployment Insurance
First $7,000 of wages per employee per year
1.5 - 6.2%
Employment Development Department
Workers' Compensation
Per $100 of payroll
Varies based on job classification, workplace safety record, and insurance carrier
Department of Insurance, Department of Industrial Relations
Personal Income Tax
Taxable personal income
1.25 - 10.55%
Franchise Tax Board
Disability Insurance (employee paid)
Taxable wage limit for withholding of $90,669
1.2% Employment Development Department
Employment Training
First $7,000 of wages per employee per year
0.1% Employment Development Department
Sources: California Investment Guide, California Employment Development Department, June 2012.