California Corporate & S Corp Franchise Tax Calculator
What a corporation or S corporation owes the Franchise Tax Board: the rate on California net income or the $800 minimum, whichever is more.
California corporations pay 8.84% of California net income, S corporations 1.5% (banks and financial companies 10.84% / 3.5%), and every corporation pays at least the $800 minimum franchise tax. New corporations are exempt from the minimum in their first year, but LLCs are not.
Choose the entity type and enter the California net income for the tax year (after apportionment, if you do business in other states).
Franchise Tax Calculator
California Franchise Tax
Rate
Minimum tax
PTE elective tax
How this is calculated
The Franchise Tax Board's rates by entity:
| Entity | Rate on California net income |
|---|---|
| C corporation (not a bank or financial) | 8.84% |
| Bank or financial corporation | 10.84% |
| S corporation | 1.5% |
| Bank or financial S corporation | 3.5% |
Minimum franchise tax. Every corporation that is incorporated, registered or doing business in California owes at least $800 a year, even with a loss or no activity. The tax is the larger of the rate times net income or the minimum.
First-year exemption. A new corporation does not owe the minimum tax for its first taxable year (Revenue and Taxation Code 23153(f)). It still owes the rate on any net income. LLCs do not get this exemption.
S corporation shareholders also pay California personal income tax on their share of the income. The optional PTE elective tax (9.3% of qualified net income, available for tax years 2021–2030) lets the S corporation pay that tax at the entity level. Shareholders get a matching credit on their California return, which can help with the federal cap on deducting state taxes.
This calculator does not apportion income for multistate businesses or compute the alternative minimum tax.
Frequently Asked Questions
What is the California corporate tax rate?
California taxes C corporations at 8.84% of California net income, and banks and financial corporations at 10.84%, subject to an $800 minimum franchise tax.
Do S corporations pay California tax?
Yes. S corporations pay a 1.5% franchise tax on California net income (3.5% for financial S corporations), with an $800 minimum. Shareholders also pay personal income tax on their share of the income.
Is the $800 minimum franchise tax waived in the first year?
For corporations, yes: a new corporation is exempt from the minimum tax in its first taxable year. LLCs are not. They owe the $800 LLC annual tax from their first year, which is reduced to $400 for first taxable years beginning in 2027 through 2029.
What is the California PTE elective tax?
An optional 9.3% tax that S corporations and partnerships can elect to pay on qualified net income on behalf of their owners, for tax years 2021 through 2030. Owners claim a credit for it on their California returns.
When is California franchise tax due?
Corporations make estimated payments on the 15th day of the 4th, 6th, 9th and 12th months of the tax year (April, June, September and December for calendar-year companies), and the return is due on the 15th day of the 4th month after year end for C corporations or the 3rd month for S corporations.
This tool provides an educational estimate only and is not tax advice. It does not apportion multistate income, compute AMT, or apply credits. Consult a tax professional or the FTB for your company.