income tax

Gov. Gavin Newsom delivers a pre-recorded State of the State address via YouTube on June 25, 2024. Photo by Miguel Gutierrez Jr., CalMatters

Commentary

California is a high-tax state. Are more taxes a balm for its budget deficits?

California ranks near the top in tax rates but still has structural deficits in its budget. Legislators would rather tax more than cut costs.

By

Dan Walters

• November 13, 2025

Construction on the state Capitol in Sacramento on April 29, 2024. Photo by Miguel Gutierrez Jr., CalMatters

Commentary

California’s finances face a perfect storm. It could eventually lead to another tax hike

The structural deficit afflicting California's budget is fueling preliminary cogitating over a tax increase of some kind, which would probably have to be ratified by voters this decade.

By

Dan Walters

• August 20, 2025

A person wearing a purple jacket with a "Combat Wounded Veteran" patch and a "Purple Heart" cap sits watching a parade. In the background, a group of scouts in uniform march down a city street, carrying a large American flag. Trees with autumn-colored leaves and modern glass buildings line the street.

Digital Democracy

California is the only state that doesn’t exempt veterans’ retirement from taxes. Is this the year that changes?

California is the only state that doesn’t allow any tax exemptions on military retirement income. New bills aim to do that, but analysts say the financial incentive may be too small to get veterans to stay in California.

By

Sameea Kamal

• March 19, 2025

A close-up of a person holding a piece of paper with both their hands. The paper is a revised questionnaire for people who will be filing their taxes.

Commentary

SALT in old wounds: California’s taxes on wealth may hinge on how Trump treats deductions

President Donald Trump and Congress may toss a federal cap on how much people deduct for local and state taxes. If so, California's rich could enjoy a big tax cut.

By

Dan Walters

• January 30, 2025

Viewed through a narrow, black sliver, Gov. Gavin Newsom stands at a podium while at a press conference.

Capitol

Gavin Newsom pledged to release his tax returns every year. The last one was for 2020

Gov. Newsom just bought a $9 million house in Marin County, but his sources of income haven’t been made public recently. He had pledged to release his tax returns.

By

Alexei Koseff

• November 19, 2024

Workers sort California income tax returns at the Franchise Tax Board office in Sacramento on April 18, 2017. Photo by Rich Pedroncelli, AP Photo

Commentary

Trump killed a tax break popular in California. Now he agrees with Pelosi and wants to restore it

Under then-President Donald Trump a popular federal income tax deduction was capped at $10,000 a year, costing Californians thousands of dollars. Now he's ready to cut the cap.

By

Dan Walters

• September 27, 2024

The state Capitol in Sacramento on July 6, 2022. Photo by Rahul Lal, CalMatters

Commentary

Politicians refused to fix California’s boom-and-bust tax system. They now face a $68 billion deficit

California politicians have steadfastly refused to deal with the volatile revenues that plague the state budget. They now face a whopping $68 billion deficit.

By

Dan Walters

• December 11, 2023

Gov. Gavin Newsom during a press conference where he signed new gun legislation into law at the Capitol Annex Swing Space in Sacramento on Sept. 26, 2023.

Commentary

California’s economic outlook worsens as Newsom travels overseas

When Gov. Gavin Newsom returns from his overseas travel, he will find a state whose economy seems to be slowing.

By

Dan Walters

• October 24, 2023

Commentary

Economic uncertainty prompts more Newsom vetoes as California tax deadline nears

While many wait to see how Gov. Gavin Newsom handles hundreds of bills on his desk, others await the looming deadline for tax returns to see whether the state will face another multibillion-dollar deficit.

By

Dan Walters

• October 10, 2023

The skyline of San Francisco as seen from Bernal Heights Hill on March 16, 2020. Photo by Jeff Chiu, AP Photo

Commentary

After decades of historic growth, California switching to a period of chronic stagnation

California has experienced population and economic growth for virtually all of its 173-year history, but now may be facing prolonged stagnation.

By

Dan Walters

• July 30, 2023

Income Tax