Personal income tax: rate.

Assembly Member Wallis proposes adjusting California's personal income tax structure through revised rates and brackets effective from 2025 through 2029. The legislation reduces current tax rates by one percentage point across multiple brackets while raising income thresholds.

Under the new structure, individual taxpayers would pay 1% on income up to $25,499, followed by graduated rates of 3%, 5%, and 7% for higher brackets, with a top rate of 9.3% applying to income over $70,606. For heads of household, the brackets begin at 1% for income up to $51,000, with similar graduated increases and a 9.3% rate on income exceeding $96,107.

The bill maintains annual inflation adjustments to tax brackets based on changes in the California Consumer Price Index, though these adjustments pause for the 2025 tax year during the initial implementation. For nonresidents and part-year residents, tax calculations continue to apply only to California-sourced income using the revised rates.

The measure takes effect immediately upon enactment as a tax levy under California's Constitution, requiring the Franchise Tax Board to update tax computation systems and guidance before the 2025 tax year begins. The existing framework for tax administration, including filing requirements and enforcement mechanisms, remains unchanged.