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Fact check: How much does California collect from personal income taxes annually?
1. Summary of the results
Based on the available data, California collects approximately $100-104 billion annually from personal income taxes. The most recent complete data shows that for fiscal year 2024-25, California collected $86.17 billion in personal income tax (PIT) receipts through March 31, with an additional $18.11 billion collected in April 2025, bringing the total to over $104 billion [1].
For comparison, the previous fiscal year (2023-24) showed $83.87 billion in PIT receipts through March 31, 2024, with April collections of $16.30 billion [2]. This demonstrates significant year-over-year growth of approximately $4 billion in personal income tax collections.
Personal income taxes represent a substantial portion of California's total General Fund revenues, which were anticipated to be $208.55 billion for fiscal year 2024-25 [1]. The growth trend shows that total income tax collections have increased over 15% in the last twelve months, with April estimated payments up more than 10% from the previous year [3].
2. Missing context/alternative viewpoints
The original question lacks important context about California's broader tax collection picture. While focusing solely on personal income taxes, it omits that California taxpayers contribute $806 billion in total federal taxes in fiscal year 2023-24, making California the largest contributor of any state to federal revenues [4].
Additionally, the question doesn't address the volatility and sustainability concerns surrounding California's income tax collections. The Legislative Analyst's Office notes that while growth has been strong, "the path to continued growth appears narrow due to factors such as the state's stagnant economy and the stock market's questionable sustainability" [3]. This suggests that current collection levels may not be sustainable long-term.
The data also reveals that California has experienced unexpected corporate tax windfalls, with corporate tax receipts exceeding forecasts by nearly $2 billion, potentially driven by large tech companies like Nvidia [5]. This corporate tax surge provides additional context about California's overall tax revenue picture beyond just personal income taxes.
3. Potential misinformation/bias in the original statement
The original question itself is straightforward and factual, asking for a specific data point without apparent bias. However, the question could be misleading by omission if used to support arguments about California's tax burden without acknowledging:
- The high volatility of California's income tax collections, which are heavily dependent on capital gains and high earners
- The economic sustainability concerns raised by state analysts about continued growth [3]
- The fact that a significant portion of collections may come from a small number of high-income taxpayers and corporations, making the revenue stream potentially unstable
The question also doesn't specify whether it's asking about gross collections or net collections after refunds and adjustments, which could lead to different interpretations of the data.