Did You Know? Fun Facts about California’s Tax System

Calling all Californians: The federal tax deadline for most California taxpayers is now November 16, 2023. Fifty-five of California’s 58 counties – all except Lassen, Modoc, and Shasta counties – qualify for relief due to three different FEMA disaster declarations over several months. In addition, The California Franchise Tax Board confirmed that tax filers living in the covered disaster areas have until November 16, 2023, to file and pay their state tax year 2022 taxes in alignment with the extended federal tax deadline.

If you still need to file and you call the Golden State home, you can get started today and meet with a TurboTax expert who can prepare, sign, and file your taxes so you can be 100% confident your taxes are done right. So why wait? TurboTax Online is available until October 31, 2023 to file your 2022 taxes. 

A fun little bonus: We’ve rounded up some of our favorite lighthearted tax facts specific to California. If you live in the western U.S. state, you could impress your family and friends with your tax knowledge!

Here are some California tax facts that you may not have known:

1. State Income Tax: California has the country’s highest state income tax rate. While this may not seem like a fun fact, it’s interesting to know that Californians pay more in state income tax than residents of any other state. California’s top marginal tax rate is currently 13.3%, which means that high earners may be paying a significant portion of their income in taxes.
2. “Jock Tax”: If you’re a professional athlete who plays in California, you may be subject to a special tax known as the “jock tax.” This tax is based on the number of days that an athlete spends in California and can apply to athletes from any state or country who play for California teams or compete in California events.
3. Vending Machine Snacks: Picking sliced apples or a fruit salad from the vending machine over a candy bar will cost you an extra 33% in taxes. Buying your fruit ahead from the grocery store will help you avoid that tax while on the go.
4. Bottled Water:  If you’re a fan of bottled water, you may be surprised to learn that California actually has a tax on it. The state’s Beverage Container Recycling Program requires a 5-10 cent deposit on most beverage containers, including bottled water. This deposit is refunded when the container is returned for recycling.

Whether you’re a professional athlete, a bottled water enthusiast, or just someone who loves fruit, it’s important to know how taxes impact your life in California.

But you don’t need to worry about knowing these unique tax rules. Meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind.