Your domicile
If your domicile is California, we consider you a resident, and you pay tax on all income while permanently stationed here.
If you come to California because of permanent change of station (PCS) orders, you do not become a resident. Generally, you are a resident of the state from which you entered the military.
Domiciled in California
Your domicile is the one place:
- Where you maintain a true, fixed and permanent home
- To which you intend to return whenever you are absent
Temporary Duty assignment (TDY)
If you leave California under a TDY, you will continue to be a California resident.
Home port
If your home port is in California, you remain a resident while on sea duty, regardless of the ship’s location.
Stationed outside of California
An individual domiciled in California when entering the military is considered a nonresident while stationed outside California on permanent change of station (PCS) orders.
We tax nonresidents on California sourced income.
National Guard/Reservists
If you're a servicemember of the National Guard or a reservist and ordered to active duty service, follow the instructions above based on your active duty assignment.
Domiciled outside California
We may require you to file a return if you have California sourced income. Military pay is not California sourced income.
Income can be from:
- Non-military wages
- California sales
- Rental property
Combat and hazard zones
A servicemember who serves, or has served, in a combat zone can exclude up to 100% of combat pay from income. Visit IRS’s Tax Exclusion for Combat Service for more information.
You have 180 days plus the number of days you served in a combat zone or qualified hazardous duty area (QHDA) to file your return.
Visit Tax Information for Military Personnel (FTB Pub 1032) for more information.
Filing requirements
Residents are taxed on all income, regardless of source.
Part-year residents are taxed on all income received while a resident and only on income from California sources while a nonresident.
Source income can be from:
- Services performed here
- Rent from real and tangible personal property
- The sale or transfer of real property
- A business, trade, or profession
- Gain or loss from the sale of stocks or bonds
Match your filing status and income below. If your income is more than the amount shown, you need to file a tax return.
California gross income
| Age as of December 31, 2023* | 0 dependents | 1 dependent | 2 or more dependents |
|---|---|---|---|
| Under 65 | $21,561 | $36,428 | $47,578 |
| 65 or older | $28,761 | $39,911 | $48,831 |
| Age as of December 31, 2023* | 0 dependents | 1 dependent | 2 or more dependents |
|---|---|---|---|
| Both are under 65 | $43,127 | $57,994 | $69,144 |
| One spouse/RDP is 65 or older | $50,327 | $61,477 | $70,397 |
| Both are 65 or older | $57,527 | $68,677 | $77,597 |
| Age as of December 31, 2023* | 0 dependents | 1 dependent | 2 or more dependents |
|---|---|---|---|
| Under 65 | N/A | $36,428 | $47,578 |
| 65 or older | N/A | $39,911 | $48,831 |
* If your 65th birthday is on January 1, 2024, you are considered to be age 65 on December 31, 2023. ↵Return to first table under the header California gross income
California adjusted gross income
| Age as of December 31, 2023* | 0 dependents | 1 dependent | 2 or more dependents |
|---|---|---|---|
| Under 65 | $17,249 | $32,116 | $43,266 |
| 65 or older | $24,449 | $35,599 | $44,519 |
| Age as of December 31, 2023* | 0 dependents | 1 dependent | 2 or more dependents |
|---|---|---|---|
| Both are under 65 | $34,503 | $49,370 | $60,520 |
| One spouse/RDP is 65 or older | $41,703 | $52,853 | $61,773 |
| Both are 65 or older | $48,903 | $60,053 | $68,973 |
| Age as of December 31, 2023* | 0 dependents | 1 dependent | 2 or more dependents |
|---|---|---|---|
| Under 65 | N/A | $32,116 | $43,266 |
| 65 or older | N/A | $35,599 | $44,519 |
* If your 65th birthday is on January 1, 2024, you are considered to be age 65 on December 31, 2023. ↵Return to first table under the header California adjusted gross income
Dependent filing requirement
If you can be claimed as a dependent, you have a different standard deduction. It cannot be more than the normal standard deduction. Your standard deduction is the larger of:
- Your earned income plus $400, or
- $1,250 for the taxable year
What form to file
Servicemembers domiciled in California
If you have a filing requirement, use either:
- California Resident Income Tax Return (Form 540 2EZ)
- California Resident Income Tax Return (Form 540)
Visit 540 2EZ Booklet or the 540 Booklet for more information.
Servicemembers domiciled outside of California
If you have a filing requirement, use California Nonresidents or Part-Year Residents Income Tax Return (540NR).
Visit 540NR Booklet for more information.
A nonresident return is required when a resident spouse and a nonresident spouse wish to file a joint return.
Community property
California is a community property state. If one spouse is a resident of California and the other is not, you may be required to report income earned outside of California.
Visit Guidelines for Determining Resident Status (FTB Publication 1031) for more information.
Military Spouses Residency Relief Act (MSRRA)
You may qualify for a California tax exemption under the MSRAA if all of the following apply:
- You’re not in the military
- You’re legally married to the military servicemember
- You live with your military spouse/RDP
- Your military spouse must have permanent change of station (PCS) orders to California
- Your domicile is a state other than California
For tax years on or after 2018 through 2022, you may elect to use the same residence as your active duty spouse.
For tax years 2023 and after, you may elect to use any of the following:
- The residence or domicile of the servicemember
- The residence or domicile of the spouse
- The permanent duty station of the servicemember
Retirement and disability
Retirement
If you’re a resident, your military retirement pay is taxable. This includes all military pension income, regardless of where you were stationed or domiciled while on active duty. Retirement pay is reported on IRS Form 1099-R.
Disability
California law conforms to Federal law, which determines the tax treatment of Veterans Affairs (VA) disability benefits. Visit IRS’s Tax information for members of the military for more information.
VA disability benefits
VA disability benefits and “lump-sum” retroactive payments are:
- Tax-exempt
- Not included in income
- Not reported on IRS Form 1099-R
Concurrent Retirement and Disability (CRDP) Pay
CRDP pay is:
- Included in income
- Even if there is a VA disability determination
- Reported on IRS Form 1099-R
Combat-Related Special Compensation (CRSC)
CRSC payments are tax-exempt and not included in gross income.
Free filing options
Most military bases offer free filing options through the Voluntary Income Tax Assistance (VITA) program.
Visit Get free tax help for more information.
Veterans Affairs (VA) status letter
An Individual Status Letter (FTB 4148), does the following:
- Helps you get student loans or VA financing
- Shows lenders and third parties, such as employers, that you have no outstanding California income tax obligations
You can get a letter for:
- Yourself
- A minor child under age 18
- An individual over age 18
- Another individual
How you get a letter
We can provide a letter only after the date tax returns are due for the current year. Visit due dates for more information.
Field office
Visit one of our field offices and bring the following:
- Social security card
- Valid photo identification
- Birth certificate
- The individual’s signed statement that authorizes us to release information on their behalf if:
- The individual is over age 18
- You are the individual’s authorized representative
We accept copies of social security cards, birth certificates, and photo identifications.
Contact us
If you are unable to visit a field office, contact us.
- Phone
- 800-852-5711
916-845-6500 (outside the U.S.)
Weekdays, 8 AM to 7 PM
