State business taxes

The State of California doesn’t just collect sales tax. The Business Tax and Fee Division administers over 30 special tax and fee programs. Which taxes apply to you and how you pay them depends on your business type. For more information on your business industry for tax and fee guides, visit the CA Department of Tax and Fee Administration.

Examples of types of state taxes

Corporate Income Tax

California’s corporate income tax applies to corporations and is based on income earned in California. Income from “pass-through" entities like limited liability companies (LLCs), partnerships, and sole proprietorships is subject to the state’s tax on personal income.

Franchise Tax

California’s franchise tax applies to corporations, limited liability companies (LLCs), limited partnerships (LPs), and limited liability partnerships (LLPs).

Alternative Minimum Tax

An alternative minimum tax (AMT) is intended to ensure wealthy taxpayers do not use loopholes to avoid paying taxes. 

Special Taxes and Fees

The California Department of Tax and Fee Administration's Business Tax and Fee Division administers over 30 special tax and fee programs that encompass a broad range of activities and transactions. Review which may apply to your business.

Tax by business type

Tax types and rates vary by the business structure (e.g. LLC, S-Corp). Tax codes change often, so it's best to refer to the State of California Income Tax filing requirements by business ownership type to get the most up-to-date details.

Última actualización November 15, 2024