TAXES 17-10, California State Income Tax Withholding
Published: March 13, 2017
Effective: Pay Period 06, 2017
Summary
The income tax withholdings for the State of California will change as follows:
- The low income exemption amount for Single and Married with zero (0) or one (1) allowance will increase from $13,419 to $13,687.
- The low income exemption amount for Married with two (2) or more allowances and Head of Household will increase from $26,838 to $27,373.
- The standard deduction for Single and Married with zero (0) or one (1) allowance will increase from $4,044 to $4,129.
- The standard deduction for Married with two (2) or more allowances and Head of Household will increase from $8,088 to $8,258.
- The Single and Married withholding tables will increase.
- The annual personal exemption credit will increase from $119.90 to $122.10.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
State Abbreviation: |
CA |
State Tax Withholding State Code: |
06 |
Acceptable Exemption Form: |
DE-4 or W-4 |
Basis for Withholding: |
State or Federal Exemptions |
Acceptable Exemption Data: |
S/M/H, Number of Regular Allowances or Number of Allowances |
TSP Deferred: |
Yes |
Special Coding: |
Determine the Total Number of Allowances Claimed field as follows: First Position - Enter the employee's marital status indicated on the allowance certificate. Enter M (married), S (single), or H (head of household). Second or Third Positions - Enter the total number of regular allowances claimed in Item 1 of the DE-4. If less than 10, precede with a 0. If no exemptions are claimed, enter 00. Determine the Additional Exemptions Claimed field as follows: First and Second Positions - Enter the number of allowances claimed in Item 2 of the DE-4. If less than 10, precede with a 0. If no allowances are claimed, enter 00. |
Additional Information: |
If the employee is using a W-4 in lieu of the California State DE-4, the information for the Additional Exemptions Claimed field should be notated on the W-4. |
Withholding Formula (Effective Pay Period 06, 2017)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
- Determine if the employee's gross salaries and wages are less than or equal to the amount shown in the Low Income Exemption Table below. If so, no income tax is to be withheld.
Low Income Exemption Table
Single
$13,687
Married Claiming zero (0) or one (1) exemption1
$13,687
Married Claiming two (2) or more exemptions1
$27,373
Head of Household
$27,373
1Number of regular allowances claimed on DE-4 or W-4.
- Determine the additional withholding allowance for itemized deductions (AWAID) by applying the following guideline and subtract this amount from the gross annual wages:
AWAID = $1,000 x Number of Itemized Allowances Claimed for Itemized Deductions on DE-4 or W-4.
- Subtract the standard deduction shown in the Standard Deduction Table below from the result of step 6 to determine the taxable income.
Standard Deduction Table
Single
$4,129
Married Claiming zero (0) or one (1) exemption1
$4,129
Married Claiming two (2) or more exemptions1
$8,258
Head of Household
$8,258
1Number of regular allowances claimed on DE-4 or W-4.
Single Tax Withholding Table
Taxable Wages
Amount of Tax
Over $0 but not over $8,015
1.1%
Over $8,015 but not over $19,001
$88.17 plus 2.2% of excess over $8,015
Over $19,001 but not over $29,989
$329.86 plus 4.4% of excess over $19,001
Over $29,989 but not over $41,629
$813.33 plus 6.6% of excess over $29,989
Over $41,629 but not over $52,612
$1,581.57 plus 8.8% of excess over $41,629
Over $52,612 but not over $268,750
$2,548.07 plus 10.23% of excess over $52,612
Over $268,750 but not over $322,499
$24,658.99 plus 11.33% of excess over $268,750
Over $322,499 but not over $537,498
$30,748.75 plus 12.43% of excess over $322,499
Over $537,498 but not over $1,000,000
$57,473.13 plus 13.53% of excess over $537,498
Over $1,000,000
$120,049.65 plus 14.63% of excess over $1,000,000
Married Tax Withholding Table
If the Amount of Taxable Income Is:
The Amount of California Tax Withholding Should Be:
Over $0 but not over $16,030
1.1%
Over $16,030 but not over $38,002
$176.33 plus 2.2% of excess over $16,030
Over $38,002 but not over $59,978
$659.71 plus 4.4% of excess over $38,002
Over $59,978 but not over $83,258
$1,626.65 plus 6.6% of excess over $59,978
Over $83,258 but not over $105,224
$3,163.13 plus 8.8% of excess over $83,258
Over $105,224 but not over $537,500
$5,096.14 plus 10.23% of excess over $105,244
Over $537,500 but not over $644,998
$49,317.97 plus 11.33% of excess over $537,500
Over $644,998 but not over $1,000,000
$61,497.49 plus 12.43% of excess over $644,998
Over $1,000,000 but not over $1,074,996
$105,624.24 plus 13.53% of excess over $1,000,000
Over $1,074,996
$115,771.20 plus 14.63% over $1,074,996
Head of Household Tax Withholding Table
If the Amount of Taxable Income Is:
The Amount of California Tax Withholding Should Be:
Over $0 but not over $16,040
1.1%
Over $16,040 but not over $38,003
$176.44 plus 2.2% of excess over $16,040
Over $38,003 but not over $48,990
$659.63 plus 4.4% of excess over $38,003
Over $48,990 but not over $60,630
$1,143.06 plus 6.6% of excess over $48,990
Over $60,630 but not over $71,615
$1,911.30 plus 8.8% of excess over $60,630
Over $71,615 but not over $365,499
$2,877.98 plus 10.23% of excess over $71,615
Over $365,499 but not over $438,599
$32,942.31 plus 11.33% of excess over $365,499
Over $438,599 but not over $730,997
$41,224.54 plus 12.43% of excess over $438,599
Over $730,997 but not over $1,000,000
$77,569.61 plus 13.53% of excess over $730,997
Over $1,000,000
$113,965.72 plus 14.63% of excess over $1,000,000
- Determine the tax credit by applying the following guidelines and subtract this amount from the result in step 7:
Tax Credit = $122.10 x Number of Regular Allowances Claimed on DE-4 or W-4.
- Divide the annual California tax withholding calculated in step 7 by 26 to obtain the biweekly California income tax withholding.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.