California Personal Income Tax Increase
The California State Legislature included a 0.25 percent increase in personal income tax in this year’s budget. This increase required that the California Income Tax Withholding Tables be adjusted to withhold the additional tax.
Beginning July 1, CalSTRS benefit allowance payments will reflect the increased tax withholding.
The amount of tax withheld is affected by current tax withholding elections:
- Depending upon income, using the tax withholding tables may result in tax increase
- Previously elected withholding amounts in addition to the new tax table deduction will remain in place
- The new withholding tables will not be applied to benefit payments with previously elected flat dollar amount only tax withholding deductions
The tax withholding comparison calculator on myCalSTRS estimates the increase’s effect on your net pay.
Change your withholding preference on myCalSTRS or submit a new Income Tax Withholding Preference Certificate.
Contact a qualified tax advisor if you have questions on how this tax increase affects you.