Generally, taxpayers can avoid paying California penalties for underpayment of estimated taxes by paying the lesser of the following:
1. 90% of the current year's tax
or
2. 100% of the preceeding year's tax
But high income taxpayers must meet some different standards as listed below:
1. When current year AGI exceeds $150,000 ($75,000 if married filing separately) but is less than $1,000,000 ($500,000 if married filing separately), they must pay in 110% of the prior year's amount to avoid the penalty.
