The State of California's Tax Brackets for 2018: What You Need to Know

The 2018 Tax Reform brought significant changes to the federal income tax system, with new brackets and rates taking effect. But how did this impact Californians? In this article, we'll break down the state of California's tax brackets for 2018 and what you need to know.

Before diving in, it's essential to note that California has its own set of income tax brackets, which differ from the federal system. While the federal government changed its brackets in 2018, California maintained its existing rates.

For married couples filing jointly, there are two main brackets: one for those earning below $443,450 and another for those earning above this amount. For married couples filing separately, the brackets are slightly different.

Here's a breakdown of the 2018 tax brackets for married couples in California:

* Single/Head of Household: 10% (up to $9,525), 12% ($9,526-$38,700), 22% ($38,701-$157,500), and 24% (above $157,500)

* Married Couple Filing Jointly: 10% (up to $19,050), 12% ($19,051-$77,400), 22% ($77,401-$315,000), and 24% (above $315,000)

For single filers, the brackets are slightly different:

* Single/Head of Household: 10% (up to $9,525), 12% ($9,526-$38,700), 22% ($38,701-$157,500), and 24% (above $157,500)

It's worth noting that California has a progressive tax system, meaning higher income earners pay a higher rate. The state also has a number of deductions and credits available to help reduce the amount of taxes owed.

If you're unsure about how these changes affect your specific situation or need help filing your taxes, consider consulting with a certified public accountant (CPA) who is familiar with California tax law.

In conclusion, while the 2018 Tax Reform brought significant changes to the federal income tax system, California maintained its existing tax brackets and rates. Understanding how these brackets apply to you can help ensure you're taking advantage of all the deductions and credits available and minimizing your tax liability.

State of ca tax brackets 2018