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CaliforniaAB 15182025-2026 Regular SessionHouseWALLET

Income taxes: administration: nonresident aliens: identifying numbers: group filing.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 2 costs, 1 mixed.

Higher tax rate for nonresident group filers

If you file in a nonresident group return, your California service income is taxed at the highest rate plus 1 percentage point. You cannot claim deductions or most credits, except credits for amounts withheld. This applies to tax years starting January 1, 2021.

Group return option for nonresident workers

California lets a taxpayer or authorized entity file one group return for nonresident workers who elect to join it. You do not need an SSN or ITIN to file in the group if you are not eligible or have not been issued one. If you later get a number, the tax agency can ask for proof. Payments the filing agent makes under this program do not count as your California gross income. These rules apply to tax years starting January 1, 2021.

Withholding credits and penalty relief for group filers

If you elect a nonresident group return, you can claim a credit for the actual amounts withheld during the year. Small underpayments avoid penalties if under $500 (or $250 for married filing separately). Starting January 1, 2026, estimated tax underpayment rules do not apply to nonresidents who file in a group return.

New duties for group return agents

If you file a group return as an agent, you must pay the taxes, additions, interest, and penalties for the electing nonresidents. The tax agency can adjust income reported for people on the group return. The tax agency can also set standards and procedures for this program without the usual rulemaking process. These duties apply to tax years starting January 1, 2021.

Old nonresident tax rules are repealed

The law repeals two sections added in 2020 that covered nonresident rules and credits. Current provisions replace those older temporary frameworks.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 132 • No: 0

Senate vote • 7/10/2025

Item 171 — Senate SFLOOR

Yes: 37 • No: 0

legislature vote • 6/25/2025

Vote in CS83

Yes: 5 • No: 0

House vote • 5/8/2025

Item 159 — Assembly AFLOOR

Yes: 69 • No: 0

legislature vote • 4/30/2025

Vote in CX25

Yes: 14 • No: 0

legislature vote • 4/21/2025

Vote in CX19

Yes: 7 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 73, Statutes of 2025.

    7/28/2025Senate

  2. Approved by the Governor.

    7/28/2025legislature

  3. Enrolled and presented to the Governor at 3:30 p.m.

    7/15/2025legislature

  4. In Assembly. Ordered to Engrossing and Enrolling.

    7/10/2025House

  5. Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 2044.).

    7/10/2025Senate

  6. Read second time. Ordered to Consent Calendar.

    7/8/2025Senate

  7. From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.

    7/7/2025Senate

  8. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (June 25). Re-referred to Com. on APPR.

    6/25/2025Senate

  9. Referred to Com. on REV. & TAX.

    5/21/2025Senate

  10. In Senate. Read first time. To Com. on RLS. for assignment.

    5/8/2025Senate

  11. Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1487.)

    5/8/2025House

  12. Read second time. Ordered to Consent Calendar.

    5/1/2025House

  13. From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (April 30).

    4/30/2025House

  14. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (April 21). Re-referred to Com. on APPR.

    4/22/2025House

  15. Referred to Com. on REV. & TAX.

    3/24/2025House

  16. From printer. May be heard in committee April 13.

    3/14/2025House

  17. Read first time. To print.

    3/13/2025House

Bill Text

  • Chaptered

    7/28/2025

    HTML

  • Enrolled

    7/11/2025

    HTML

  • Introduced

    3/13/2025

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