New California Tax Rates

New California sales and use tax rates take effect on April 1, 2021. The California Department of Tax and Fee Administration (CDTFA) has announced new rates that were approved by California voters in November 2020. The statewide tax rate is 7.25%. In most areas of California, local jurisdictions have added district taxes that increase the tax owed by a seller. The new tax rates apply only within the indicated city or county limits and range from 0.10% to 1.00%. The new rates, tax codes, acronyms and expiration dates will be available to download and view before April 1, 2021, on the CDTFA webpage. They have been organized into three categories: by city, county and unincorporated areas. For more information visit the California Department of Tax and Fee Administration.

Golden State Stimulus

California’s Franchise Tax Board (FTB) has announced the 2021 distribution of California Golden State Stimulus payments. This is a one-time payment of $600 or $1,200 to eligible recipients. Those eligible are taxpayers who have filed a 2020 tax return, have California adjusted gross income of $75,000 or less, are either a California earned income tax recipient or filer with an individual taxpayer identification number (ITIN), and are California residents on the date the payment is issued.

To be eligible, the taxpayer’s 2020 tax return must be filed by Oct. 15, 2021. A California stimulus payment will be issued after processing, generally within 45 days for direct deposit and up to 60 days for a paper check.

Stimulus payments won’t be subject to CA state income tax; won’t be subject to offset for debts owed to FTB or other government agencies; and are not subject to withholding orders. For more details visit the FTB