If You Earned the Same, You May Pay Less to State
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SACRAMENTO — California taxpayers whose income stayed the same this year will probably pay less in taxes because of adjustments for inflation, the state tax agency said Friday.
Income tax brackets, rates and deductions for the 1989 tax year are being adjusted by 5.3% to reflect the change in the California Consumer Price Index, the Franchise Tax Board said.
The brackets, which determine the income levels at which various tax rates are paid, will be increased by 5.3%. The personal and dependent exemptions go up from $52 to $55 each. The standard deduction increases from $1,966 to $2,070 for single taxpayers and from $3,932 to $4,140 for married and head-of-household taxpayers.
George Ramsey of the Franchise Tax Board said a married couple with two children and a constant income of $25,000 would see their income tax drop from $196 in 1988 to $153. A married couple with two children and a constant income of $100,000 would have taxes of $6,273 in 1988 and $6,111 in 1989.
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