NEW CA TAX RATES
On election day, November 6, 2012 the California voters passed Proposition 30 and retroactively increased certain tax rates as of January 1, 2012. Pay attention now, you might need to consider these changes in your 2012 tax projections and planning.
The table below shows the increases passed as well as the level of income that will be impacted by the changes.
Governor's Ballot Initiative (Prop 30) changes:
10.3% (1% increase) on income of:
$250,001–$300,000 for single/MFS;
$340,001–$408,000 for HOH; and
$500,001–$600,000 for MFJ.
11.3% (2% increase) on income of:
$300,001–$500,000 for single/MFS;
$408,001–$680,000 for HOH; and
$600,001–$1,000,000 for MFJ.
12.3% (3% increase) on income of:
More than $500,000 for single/MFS;
More than $680,000 for HOH; and
More than $1,000,000 for MFJ.
(Note: Income in excess of $1 million is also subject to the 1% mental health surcharge.)
Jeremiah K. Murphy, CPA is an accounting firm providing tax services, audits and business consulting.