# TAXES 21-15, California State Income Tax Withholding

Published: March 10, 2021

Effective: Pay Period 05, 2021

## Summary

The income tax withholdings formula for the State of California includes the following changes:

- The low income exemption amount for Married with 0 or 1 allowance has changed from $15,042 to $15,267.
- The low income exemption amount for Married with 2 or more allowances, and Head of Household has changed from $30,083 to $30,534.
- The standard deduction for Married with 0 or 1 allowance has changed from $4,537 to $4,601.
- The standard deduction for Married with 2 or more allowances, and Head of Household has changed from $9,074 to $9,202.
- The Single, Married, and Head of Household income tax withholdings have changed.
- The annual personal exemption credit has changed from $134.20 to $136.40.

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 |

Basis for Withholding: |
State Exemptions |

Acceptable Exemption Data: |
S/M/H, Number of Regular Allowances, Number of Additional Allowances |

TSP Deferred: |
Yes |

Special Coding: |
Determine the Total Number of Allowances Claimed field as follows: - Enter the employee's marital status indicated on the allowance certificate. Enter M (married), S (single), or H (head of household). - 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 allowance are claimed, enter 00. Determine the Additional Allowances Claimed field as follows: - Enter the number of additional allowances claimed on the DE-4. If less than 10, precede with a 0. If no allowances are claimed, enter 00. |

Additional Information: |
Employees who have not submitted a DE-4 will default to Single and zero (S00) allowances. |

### Withholding Formula (Effective Pay Period 05, 2021)

- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees 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 (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- Determine if the employee's gross salary 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

$15,267

Married Claiming 0 or 1 exemption

^{1}$15,267

Married Claiming 2 or more exemptions

^{1}$30,534

Head of Household

$30,534

^{1}Number of regular allowances claimed on DE-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.

- 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

$4,601

Married Claiming 0 or 1 exemption

^{1}$4,601

Married Claiming 2 or more exemptions

^{1}$9,202

Head of Household

$9,202

^{1}Number of regular allowances claimed on DE-4.**Single Tax Withholding Table**If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:

Over $0 but not over $8,932

1.1%

Over $8,932 but not over $21,175

$98.25 plus 2.2% of excess over $8,932

Over $21,175 but not over $33,421

$367.60 plus 4.4% of excess over $21,175

Over $33,421 but not over $46,394

$906.42 plus 6.6% of excess over $33,421

Over $46,394 but not over $58,634

$1,762.64 plus 8.8% of excess over $46,394

Over $58,634 but not over $299,508

$2,839.76 plus 10.23% of excess over $58,634

Over $299,508 but not over $359,407

$27,481.17 plus 11.33% of excess over $299,508

Over $359,407 but not over $599,012

$34,267.73 plus 12.43% of excess over $359,407

Over $599,012 but not over $1,000,000

$64,050.63 plus 13.53% of excess over $599,012

Over $1,000,000

$118,304.31 plus 14.63% of excess over $1,000,000

**Married Tax Withholding Table**If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:

Over $0 but not over $17,864

1.1%

Over $17,864 but not over $42,350

$196.50 plus 2.2% of excess over $17,864

Over $42,350 but not over $66,842

$735.19 plus 4.4% of excess over $42,350

Over $66,842 but not over $92,788

$1,812.84 plus 6.6% of excess over $66,842

Over $92,788 but not over $117,268

$3,525.28 plus 8.8% of excess over $92,788

Over $117,268 but not over $599,016

$5,679.52 plus 10.23% of excess over $117,268

Over $599,016 but not over $718,814

$54,962.34 plus 11.33% of excess over $599,016

Over $718,814 but not over $1,000,000

$68,535.45 plus 12.43% of excess over $718,814

Over $1,000,000 but not over $1,198,024

$103,486.87 plus 13.53% of excess over $1,000,000

Over $1,198,024

$130,279.52 plus 14.63% of excess over $1,198,024

**Head of Household Tax Withholding Table**If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:

Over $0 but not over $17,876

1.1%

Over $17,876 but not over $42,353

$196.64 plus 2.2% of excess over $17,876

Over $42,353 but not over $54,597

$735.13 plus 4.4% of excess over $42,353

Over $54,597 but not over $67,569

$1,273.87 plus 6.6% of excess over $54,597

Over $67,569 but not over $79,812

$2,130.02 plus 8.8% of excess over $67,569

Over $79,812 but not over $407,329

$3,207.40 plus 10.23% of excess over $79,812

Over $407,329 but not over $488,796

$36,712.39 plus 11.33% of excess over $407,329

Over $488,796 but not over $814,658

$45,942.60 plus 12.43% of excess over $488,796

Over $814,658 but not over $1,000,000

$86,447.25 plus 13.53% of excess over $814,658

Over $1,000,000

$111,524.02 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 = $136.40 x Number of Regular Allowances Claimed on DE-4.

- Divide the annual California tax withholding calculated in step 8 by the number of pay dates in the tax year to obtain the biweekly California income tax withholding.

## Resources

To view the updated tax formula, go to the

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