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2016 State Income Tax Schedules Adjusted for Inflation

September 07, 2016 /

Sacramento - The Franchise Tax Board (FTB) today published the 2016 state tax brackets, which are annually adjusted for inflation. Brackets are “indexed” each year to reflect changes in the California Consumer Price Index (CPI), a measure of the average change over time in the prices paid for consumer goods and services. Tax filing requirement thresholds, the standard deduction, and certain credits were adjusted along with income tax brackets based on the inflation rate of 2.1 percent, as measured by the California CPI for all urban consumers from June 2015 to June 2016. Last year, California had an inflation rate of 1.3 percent.