California income tax increase

The California budget passed in February of this year included an increase in the personal income tax rate. The state hoped to receive enough in federal stimulus funds to prevent the tax increase, but that unfortunately is not the case. The highest individual tax rate is now .25% higher for 2009. For employers: The EDD has just released new payroll withholding tables to reflect the increased tax rate. For individuals: The Sacramento Bee has an online calculator to calculate how much your taxes will increase under the new budget.