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What is the tax rate on Dividends or Interest in California?


I want to figure out the tax equivalent yield on some bond investments. I am not sure what the california state tax rates are for bond interest, or dividends for that matter.

Hello, kdog! Unless the bonds are in-state municipal bonds, the income would be taxed at the same rate as the rest of your California income. California taxes all income the same; they don't have any special capital gains rate like the IRS provides.

Check out Page 2 of the Schedule CA instructions linked below for details on any differences between California and federal treatment of interest and dividend income.

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