How to Figure Tax Using the 2024 California Tax Rate Schedules

Example : Chris and Pat Smith are filing a joint tax return using Form 540. Their taxable income on Form 540, line 19 is $125,000.

Using Schedule Y, they find the taxable income range that includes their taxable income of $125,000.

They subtract the amount at the beginning of their range from their taxable income.

Example : $125,000 − 111,732 = $13,268

They multiply the result from Step 2 by the percentage for their range.

Example : $13,268 × .08 = $1,061.44

They round the amount from Step 3 to two decimals (if necessary) and add it to the tax amount for their income range. After rounding the result, they will enter $4,920 on Form 540, line 31.

Example : $3,859.04 + 1,061.44 = $4,920.48