On September 7, 2016, the California Franchise Tax Board (FTB) announced the inflation adjustments that affect California's tax brackets, standard deductions, the personal and dependent exemption credits and many other items. According to the announcement, the California inflation rate was 2.1% for the measurement year of July 2015 through June 2016, so all brackets and amounts increased by about that percentage. This information may be helpful for those wishing to do end-of-year tax planning for their California clients ... or for themselves.
Please note that the information just released pertains to the current tax year ... 2016. Unlike the IRS which will soon be announcing (probably in October) the 2017 tax rates and other inflation-adjusted changes, the California rate adjustments are not made available until September of the year for which they are effective.
The press release may be found on the FTB's web site. Here's a link: https://www.ftb.ca.gov/ From there, click on "News and Events" then the link to the announcement.
Please note that the information just released pertains to the current tax year ... 2016. Unlike the IRS which will soon be announcing (probably in October) the 2017 tax rates and other inflation-adjusted changes, the California rate adjustments are not made available until September of the year for which they are effective.
The press release may be found on the FTB's web site. Here's a link: https://www.ftb.ca.gov/ From there, click on "News and Events" then the link to the announcement.