California AB2591 adjusts the state's personal income tax standard deduction to align with federal poverty levels.

California AB2591 modifies the state's personal income tax standard deduction to match federal poverty levels, aiming to prevent taxpayers from being pushed into poverty. For taxable years before July 1, 2027, the standard deduction varies based on household size, with amounts such as $1,880 for individuals and $3,760 for heads of household. Starting July 1, 2027, the deduction will be adjusted annually based on the California Consumer Price Index and federal poverty guidelines.

California AB2591 adjusts the state's personal income tax standard deduction to align with federal poverty levels.

California AB2591 modifies the state's personal income tax standard deduction to match federal poverty levels, aiming to prevent taxpayers from being pushed into poverty. For taxable years before July 1, 2027, the standard deduction varies based on household size, with amounts such as $1,880 for individuals and $3,760 for heads of household. Starting July 1, 2027, the deduction will be adjusted annually based on the California Consumer Price Index and federal poverty guidelines.