State income tax rates in California as of 2014 are 8.84 percent for corporations, 10.84 percent for financial institutions, 1.5 percent for S corporations and 3.5 percent for S corporation financial institutions. The maximum income tax rate for individuals is 12.3 percent, according to the California Franchise Tax Board.
California offers its taxpayers income tax deductions, exemptions and credits, such as those for dependents, blind persons and persons more than 65 years old. California also gives exemptions to tax filers who are single, married filing separately or head of the household. Widowed persons and married or registered domestic partners also qualify for exemptions, according to the California Franchise Tax Board.