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AB-1282 • 2026

Personal Income Tax Law: credits: medical expenses.

Personal Income Tax Law: credits: medical expenses.

Healthcare Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Jeff Gonzalez
Last action
2026-02-02
Official status
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on tracking the effects of the deduction or specifying requirements for data collection beyond what is already mandated by existing law.

Medical Expense Deduction for Taxes

AB-1282 allows people to deduct out-of-pocket medical expenses from their taxable income, up to $5,000 per year, starting in 2025.

What This Bill Does

  • Allows taxpayers to subtract out-of-pocket medical costs from their taxable income.
  • Limits the deduction to a maximum of $5,000 each year for five years.

Who It Names or Affects

  • People who pay personal income taxes in California
  • Those with out-of-pocket medical expenses

Terms To Know

Taxable Income
The amount of money you earn that the government can tax.
Out-of-Pocket Medical Costs
Money spent on medical care not covered by insurance or other programs.

Limits and Unknowns

  • It is unclear how many people will benefit from this deduction.
  • The bill does not specify what happens after the five-year period ends in 2030.

Bill History

  1. 2026-02-02 California Legislative Information

    From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. 2026-01-31 California Legislative Information

    Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

  3. 2025-05-05 California Legislative Information

    In committee: Set, second hearing. Held under submission.

  4. 2025-03-24 California Legislative Information

    In committee: Set, first hearing. Referred to suspense file.

  5. 2025-03-10 California Legislative Information

    Referred to Com. on REV. & TAX.

  6. 2025-02-24 California Legislative Information

    Read first time.

  7. 2025-02-22 California Legislative Information

    From printer. May be heard in committee March 24.

  8. 2025-02-21 California Legislative Information

    Introduced. To print.

Official Summary Text

AB 1282, as introduced, Jeff Gonzalez.
Personal Income Tax Law: credits: medical expenses.
The Personal Income Tax Law in modified conformity with federal income tax laws, generally allows various deductions in computing the income that is subject to tax imposed under that law.
This bill would, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, allow a deduction in computing income for out-of-pocket medical costs, as defined. The bill would limit the deduction to $5,000 per taxable year.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional
information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.

Current Bill Text

Read the full stored bill text 
Download Bill PDF