California AB2336 temporarily excludes up to $25,000 of overtime pay and defined benefit plan proceeds from state income tax.

California AB2336 adds a temporary exclusion to state income tax for the first $25,000 of overtime pay and defined benefit plan proceeds received by taxpayers. This exclusion applies to taxable years beginning on or after January 1, 2026, and before January 1, 2031. The exclusion aims to provide financial support to those working extra hours and those on limited retirement income. The exclusion will be repealed as of January 1, 2031.

California AB2336 temporarily excludes up to $25,000 of overtime pay and defined benefit plan proceeds from state income tax.

California AB2336 adds a temporary exclusion to state income tax for the first $25,000 of overtime pay and defined benefit plan proceeds received by taxpayers. This exclusion applies to taxable years beginning on or after January 1, 2026, and before January 1, 2031. The exclusion aims to provide financial support to those working extra hours and those on limited retirement income. The exclusion will be repealed as of January 1, 2031.