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tz3019
Returning Member

(Fixed) Incorrect calculation for top 2025 California tax bracket

TurboTax 2025 currently appears to be using an incorrect calculation on CA Form 540 for the top marginal tax bracket (>$742,953).
For example, given a single filer with a Line 19 taxable income of $1,000,000, TurboTax calculates a Line 31 Tax value of $104,854. This is incorrect, as per the 2025 FTB tax schedule (www.ftb.ca.gov/forms/2025/2025-540-tax-rate-schedules.pdf) and online calculator (webapp.ftb.ca.gov/taxcalc/), this should be $72,219.84 + 12.3% of the amount over $742,953, or $103,837.
From trying a few values, it appears TurboTax is incorrectly using a value closer to 12.7% as the top marginal rate, rather than 12.3%. This affects both the online and Mac desktop versions.
Token #: 1432649260-78307181

 

EDIT: This is fixed in the latest CA forms update, and the calculation is now correct.

 

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