Form 540nr Short -- California Nonresident Or Part-Year Resident Income Tax For: Fill & Download for Free

California.For more information, go to the California Franchise Tax Board’s website or call (800) 786–2253 toll-free.California tax factsCalifornia gives taxpayers the option to make voluntary fund contributions to more than a dozen nonprofit programs.California taxpayers can check the status of their refunds by using the state’s interactive website.Sales and use tax in CaliforniaThere are two key tax types businesses selling goods and services in California should be well-versed in: sales tax and use tax. Businesses should be well versed in both to be sure to stay compliant with California state and local tax laws. This guide aims to assist by summarizing key tax topics in an easy to read format.California sales tax overviewSales tax is a tax paid to a governing body (state or local) on the sale of certain goods and services. California first adopted a general state sales tax in 1933, and since that time, the rate has risen to 7.25 percent. On top of the state sales tax, there may be one or more local sales taxes, as well as one or more special district taxes, each of which can range between 0.1 percent and 1 percent. Currently, combined sales tax rates in California range from 7.25 percent to 10.25 percent, depending on the location of the sale.As a business owner selling taxable goods or services, you act as an agent of the state of California by collecting tax from purchasers and passing it along to the appropriate tax authority. As of July 1, 2017, sales and use tax in California is administered by the California Department of Tax and Fee Administration (CDTFA). Previously, it was administered by the California State Board of Equalization.Any sales tax collected from customers belongs to the state of California, not you. It’s your responsibility to manage the taxes you collect to remain in compliance with state and local laws. Failure to do so can lead to penalties and interest charges.When tangible personal property is purchased in California, sales tax is generally collected by the retailer at the point of sale. Should it not be collected or if goods are purchased out of state and no tax is collected, a use tax is likely due and it is up to the buyer to file it.If you’re planning a move to another state for work it might be wise to consider what you’ll pay in property tax, sales tax and, of course, how big of a chunk the state government is going to take out of your paycheck. The federal government will get its share wherever you go, but states can vary widely in how much they collect from your income, so state taxes should be a factor you take into consideration as you work to decide if and where to relocate.While state income tax rates vary by your income bracket and circumstances, there are some states that will certainly take a bigger bite out of your paycheck than others, and seven that levy no income tax at all: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.For income tax collections per capita in 2011, the Tax Foundation reports that New York leads the pack at $1,864 per person. The next four in line are: Connecticut ($1,808), Massachusetts ($1,765), Oregon ($1,425) and Minnesota ($1,404).Here are the states with the highest top income tax rates and the highest rates for the middle class, according to studies by the Tax Foundation and the Heritage Foundation.At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here’s an explanation for how we make money.California Sales & Use Tax GuideLearn how to manage California sales and use tax collection, filing, and complianceLux Blue/Getty ImagesOverview of California taxesCalifornia’s state income tax rates range from 1 percent to 12.3 percent. The Golden State also assesses a 1 percent surcharge on taxable incomes of $1 million or more. More on California taxes can be found below.Personal income taxCalifornia collects income tax from its residents at the following rates.For single and married/registered domestic partners filing separately:1 percent on the first $8,544 of taxable income2 percent on taxable income between $8,545 and $20,2554 percent on taxable income between $20,256 and $31,9696 percent on taxable income between $31,970 and $44,3778 percent on taxable income between $44,378 and $56,0859.3 percent on taxable income between $56,086 and $286,49210.3 percent on taxable income between $286,493 and $343,78811.3 percent on taxable income between $343,789 and $572,98012.3 percent on taxable income of $572,981 and aboveA 1 percent surcharge, the mental health services tax, is collected on taxable incomes of $1 million or more, making California’s highest marginal rate 13.3 percent.For married people filing joint returns and heads of households, the rates remain the same, but the income brackets are doubled.Residents must complete returns on Form 540 2EZ or Form 540. Nonresidents or part-year residents should file 540NR Short Form or 540NR Long Form. The deadline for all forms is April 15. When that date falls on a weekend or holiday, filers get until the next business day to submit their state returns.Sales taxesCalifornia’s minimum combined state, county and local sales and use tax rate is 7.5 percent (6.5 percent state-only portion and 1 percent collected by localities). Rates will be higher in cities and counties with special taxing districts.Many business owners believe gift wrapping is a nontaxable service. However, unless food products were sold in a nontaxable transaction, sales tax generally applies to gift-wrapping charges. Publication 106 contains more information.California’s statewide tax rate is 7.25 percent. In most areas of California, local jurisdictions have added district taxes that increase the applicable sales tax on products. Those district tax rates range from 0.1 percent to 1 percent and more than one district tax can be in effect in an area.You can find your area’s effective combined sales tax rates via online search by address. Some cities also have created lists of city and county addresses to help retailers and consumers in identifying addresses located within their city.You also may contact the California Department of Tax and Fee Administration (CDTFA) Customer Service Center at 1-800–786–2253 or call the local CDTFA office closest to you for assistance.Personal and real property taxesIn the state of California, all real property is taxable and shall be assessed at fair market value.The California Board of Equalization (BOE) acts in an oversight capacity to ensure compliance by county assessors with property tax laws, regulations and assessment issues. BOE conducts periodic compliance audits of the 58 county assessors’ programs and develops property tax assessment policies and informational materials to guide county assessors and local assessment appeals boards.Any homestead exemptions are handled at the county level, and residents must contact the local county tax assessor’s office to inquire.The state’s property tax postponement program allows eligible homeowners (senior citizens and blind or disabled residents) to postpone payments of property taxes on their principal places of residence. Some California counties may also offer a property tax postponement program for properties located in the county.California previously offered a homeowner and renter assistance program under which a once-a-year payment was made to qualified individuals based on part of the property taxes assessed and paid on their homes or paid indirectly as part of their rent. However, this program was suspended due to budget constraints.Inheritance and estate taxesCalifornia has no inheritance tax, and its estate tax was phased out in connection with federal estate tax law changes. Executors of estates of people who died on or after Jan. 1, 2005, are no longer required to file a California estate tax return.There is no inheritance tax in California.Other California tax factsCalifornia gives taxpayers the option to make voluntary fund contributions to more than a dozen nonprofit programs.California taxpayers can check the status of their refunds by using the state’s interactive website.No intangible personal property taxes are levied in California.For more information, go to the California Franchise Tax Board’s website or call (800) 786–2253 toll-free.