Proposition 30 which passed 11/7 in California, retroactively increases taxes effective January 1, 2012. The following rate increases are effective for seven years:
| Governor’s Ballot Initiative | |
| 10.3% (1% increase) on income of: | $250,001–$300,000 for single/MFS; $340,001–$408,000 for HOH; and $500,001–$600,000 for MFJ. |
| 11.3% (2% increase) on income of: | $300,001–$500,000 for single/MFS; $408,001–$680,000 for HOH; and $600,001–$1,000,000 for MFJ. |
| 12.3% (3% increase) on income of: | More than $500,000 for single/MFS; More than $680,000 for HOH; and More than $1,000,000 for MFJ. |
Please also note that income in excess of $1,000,000 is also subjection to an additional 1% mental health surcharge.
In addition, proposition 30 will also increase the state sales tax rate by 0.25% for four years, beginning January 1, 2013.
If you are in California you may want to check to see if you are located in one of the Enterprise Zones. Taxpayers who fall in Enterprise Zones, can minimize or eliminate California income taxes.
To find out if you’re in the zone, for LA County you can enter your address at http://www.lacountyez.org/zones.html.