| Ballot measures 66 and 67 have passed |
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As a result of the ballot measures passing, the following law changes go into effect:
1. New marginal tax rates:
- New marginal tax rates (tax years 2009, 2010, and 2011)
- Taxable income above $125,000 ($250,000 joint) but not more than $250,000 ($500,000 joint) will be taxed at 10.8 percent.
- Taxable income above $250,000 ($500,000 joint) will be taxed at 11 percent.
- New marginal rates (tax years 2012 and on)
- Taxable income above $125,000 ($250,000 joint) will be taxed at 9.9 percent.
- For 2009 only: Interest on underpayment of estimated tax directly due to the tax increase will be waived. It is extremely important that these taxpayers file Form 10 to ensure that they are charged the correct amount of interest on any underpayment.
2. The federal tax subtraction for personal income taxpayers is phased out for high income individuals:
- AGI of $125,000 to $129,999 (or $250,000 to $259,999 for joint filers), subtraction is limited to $4,650.
- AGI of $130,000 to $134,999 (or $260,000 to $269,999 for joint filers), subtraction is limited to $3,500.
- AGI of $135,000 to $139,999 (or $270,000 to $279,999 for joint filers), subtraction is limited to $2,300.
- AGI of $140,000 to $144,999 (or $280,000 to $289,999 for joint filers), subtraction is limited to $1,150.
- AGI of $145,000 or more ($290,000 or more for joint filers), federal tax subtraction is not allowed.
- Head of household or a surviving spouse/registered domestic partner RDP (qualifying widower/RDP) are treated as joint filers for this purpose.
3. A new corporate minimum tax structure and marginal rates are now in effect.
4. A new $150 minimum tax on partnerships and S corporations is now in effect.
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