California’s withholding methods were updated effective Jan. 1, 2026, an Employment Development Department official said Nov. 17.
The standard deduction used in the Method B exact-calculation method and its instructions increase to $5,706 or $11,412 annually, up from $5,540 or $11,080, depending on the employee’s filing status and, for married employees, the number of state allowances claimed. Married employees who claim at least two allowances receive the higher value, otherwise receiving the lower value. Heads of household also receive the higher value.
The value of a state allowance increases to $168.30 annually, up from $163.90. Tax rates used in Method ...
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