Volatility of California’s Personal Income Tax Structure - Volatility of California’s Personal Income Tax Structure [Video]

The personal income tax is California's most important revenue source. In this companion video to our report Volatility of California’s Personal Income Tax Structure, LAO Economist Justin Garosi briefly explains the volatility of California's personal income tax structure.
https://lao.ca.gov/Videos/Player?playlistId=110&videoId=172

Volatility of California’s Personal Income Tax Structure

Sep 28, 2017 - AD of PIT Tax Structure Comparing Personal Income Volatility to PIT Volatility. In our previous report , we calculated the AD of personal income to be 2.3. To determine the causes of PIT volatility, we first estimate the AD of the overall PIT and compare it to the AD of personal income.
https://lao.ca.gov/Publications/Report/3703

Volatility of California’s Personal Income Tax Structure [Publication Details]

Sep 28, 2017 - This report analyzes the causes of PIT volatility. We find that about 40 percent of PIT volatility is due to choices about which types of income to tax, another 40 percent is due to the progressive rate structure, and the last 20 percent is due to deductions and credits.
https://lao.ca.gov/Publications/Detail/3703

IRS Data Show Pandemic Uptick in Outmigration Continues [EconTax Blog]

Jul 31, 2024 - Over the last few years, outmigration has been a drag on PIT revenue growth of about 1 percent per year. This is nontrivial when compared to the long-term average growth rate of PIT revenue —7 percent per year.
https://lao.ca.gov/LAOEconTax/article/Detail/809

IRS Data Show Pandemic Uptick in Outmigration Continues [EconTax Blog]

Jul 31, 2024 - Over the last few years, outmigration has been a drag on PIT revenue growth of about 1 percent per year. This is nontrivial when compared to the long-term average growth rate of PIT revenue —7 percent per year.
https://lao.ca.gov/LAOEconTax/Article/Detail/809

The 2025-26 Budget: Partial Income Tax Exclusion for Military Retirement Income [EconTax Blog]

Feb 13, 2025 - The personal income tax (PIT) is a broad-based tax that the state levies on most types of income, such as wages, capital gains, and some retirement income. The state ’s income tax ranges from 1  percent to 12.3  percent.
https://lao.ca.gov/LAOEconTax/article/Detail/820

The 2025-26 Budget: Partial Income Tax Exclusion for Military Retirement Income [EconTax Blog]

Feb 13, 2025 - The personal income tax (PIT) is a broad-based tax that the state levies on most types of income, such as wages, capital gains, and some retirement income. The state ’s income tax ranges from 1  percent to 12.3  percent.
https://lao.ca.gov/LAOEconTax/Article/Detail/820

Recent Revenues Coming in Below Governor's Budget Projections [EconTax Blog]

Jan 22, 2024 - The 2024-25 Governor 's budget projects that PIT revenue will grow 12 percent this year, from $101.7 billion in 2022-23 to $113.8 billion in 2023-24. Over the first half of the year, availabe revenue data suggest PIT revenues are growing much slower than 12 percent.
https://lao.ca.gov/LAOEconTax/article/Detail/795

Recent Revenues Coming in Below Governor's Budget Projections [EconTax Blog]

Jan 22, 2024 - The 2024-25 Governor 's budget projects that PIT revenue will grow 12 percent this year, from $101.7 billion in 2022-23 to $113.8 billion in 2023-24. Over the first half of the year, availabe revenue data suggest PIT revenues are growing much slower than 12 percent.
https://lao.ca.gov/LAOEconTax/Article/Detail/795

How Does Tech Company Equity Pay Affect Income Tax Withholding? [EconTax Blog]

Nov 16, 2023 - Most Personal Income Tax (PIT) Revenue Comes from Paycheck Withholding. The state collects about 70 percent of overall PIT revenue via wage and salary withholding. Other sources include income taxes paid on business income, financial earnings, retirement income, and capital gains.
https://lao.ca.gov/LAOEconTax/Article/Detail/789