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AB-2591 • 2026

Personal income tax: standard deduction: federal poverty level.

Personal income tax: standard deduction: federal poverty level.

Taxes
Passed Legislature

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

Sponsor
Bains
Last action
2026-04-13
Official status
In committee: Set, first hearing. Hearing canceled at the request of author.
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details about how the standard deduction will be adjusted annually or its immediate effect as a tax levy beyond mentioning it is to take effect immediately.

Personal Income Tax: Standard Deduction Based on Poverty Level

AB-2591 allows taxpayers to choose a standard deduction based on the federal poverty level for each household size, starting in July 2027.

What This Bill Does

  • Allows taxpayers to elect a standard deduction equal to the federal poverty level adjusted for their household size.
  • Requires the Franchise Tax Board to adjust the standard deduction annually based on inflation and household size.

Who It Names or Affects

  • Taxpayers in California who file personal income tax returns.

Terms To Know

Standard Deduction
A fixed amount that taxpayers can subtract from their taxable income to lower the taxes they owe.
Federal Poverty Level
An official measure of income used to determine eligibility for certain government programs and benefits.

Limits and Unknowns

  • The bill does not specify how it will affect estates or trusts.
  • It is unclear if the bill has been signed into law by the governor as of now.

Bill History

  1. 2026-04-13 California Legislative Information

    In committee: Set, first hearing. Hearing canceled at the request of author.

  2. 2026-03-09 California Legislative Information

    Referred to Com. on REV. & TAX.

  3. 2026-02-21 California Legislative Information

    From printer. May be heard in committee March 23.

  4. 2026-02-20 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 2591, as introduced, Bains.
Personal income tax: standard deduction: federal poverty level.
The Personal Income Tax Law imposes taxes based upon taxable income of individuals, estates, and trusts, at specified rates, and allows a taxpayer to elect to take a standard deduction in lieu of itemizing deductions. Under existing law, for the taxable year beginning on January 1, 2025, the standard deduction is $11,412 for heads of household, surviving spouses, and married couples filing a joint return and $5,706 for other individuals. Existing law requires the Franchise Tax Board to adjust those amounts annually for inflation, as provided.
This bill, the Taxing Californians into Poverty Protection Act, for taxable years beginning on or after July 1, 2027, would instead allow a taxpayer to elect to take a standard deduction equal to the federal poverty level, as adjusted for the number of persons in the household, as specified, in lieu of
itemizing deductions. The federal poverty level for 2025 was $15,650 for a household of one, as specified.
This bill would take effect immediately as a tax levy.

Current Bill Text

Read the full stored bill text 
Download Bill PDF