Assembly BillIntroducedRevenue and Taxation
AB 2591: Personal income tax: standard deduction: federal poverty level.
What AB 2591 does, verified April 29, 2026
This bill would amend the personal income tax law to allow taxpayers to elect a standard deduction equal to the federal poverty level for households of one, two, three, four, or five members, as adjusted for inflation. The standard deduction would replace the existing standard deduction amounts of $11,412 for heads of household and $5,706 for other individuals. The bill would take effect immediately as a tax levy, allowing taxpayers to choose this new standard deduction starting with the 2027 tax year.
Bill journey
1IntroducedCurrent
2In CommitteePending
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: In committee: Set, second hearing. Hearing canceled at the request of author. (2026-04-27)Alert me
Author and sponsors
Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions5 total · showing 5
| Apr. 27, 2026 | In committee: Set, second hearing. Hearing canceled at the request of author. |
| Apr. 13, 2026 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Mar. 09, 2026 | Referred to Com. on REV. & TAX. |
| Feb. 21, 2026 | From printer. May be heard in committee March 23. |
| Feb. 20, 2026 | Read first time. To print. |
Latest bill textIntroduced version, February 20, 2026 · 1,073 words
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 2591
| Introduced by Assembly Member Bains |
February 20, 2026 |
An act to amend Section 17073.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
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.
The people of the State of California do enact as follows:
SECTION 1.
(a) This act shall be known, and may be cited, as the Taxing Californians into Poverty Protection Act.(b) The Legislature finds and declares all of the following:
(1) The income tax system should not exacerbate poverty by reducing the disposable income of individuals and families below the federal poverty levels established by the United States Census Bureau.
(2) Aligning California’s standard deduction with the federal poverty levels will provide critical tax relief to low-income individuals and families and help ensure financial stability.
(3) Increasing the standard deduction will simplify tax compliance and improve fairness in the tax system.
(c) The purpose of this act is to adjust California’s standard deduction to help ensure that no individual or family is taxed into poverty by the state’s income tax system.
SEC. 2.
Section 17073.5 of the Revenue and Taxation Code is amended to read:17073.5.
(a)(1)
(A)
In the case of a taxpayer, other than a head of a household or a surviving spouse (as defined in Section 17046) or a married couple filing a joint return, the standard deduction shall be one thousand eight hundred eighty dollars ($1,880).(2)
(B)
In the case of a head of household or a surviving spouse (as defined in Section 17046) or a married couple filing a joint return, the standard deduction shall be three thousand seven hundred sixty dollars ($3,760).(2) For taxable years beginning on or after July 1, 2027, a taxpayer may elect to take a standard deduction as follows:
(A) In the case of a taxpayer, other than a head of a household or a surviving spouse, as defined in Section 17046, or a married couple filing a joint return, the standard deduction shall be equal to the federal poverty line for a household of one person.
(B) In the case of a head of household, the standard deduction shall be equal to the federal poverty line for a household of two persons.
(C) In the case of a surviving spouse, as defined in Section 17046, or a married couple filing a joint return, the standard deduction shall be equal to the federal poverty line for a household that is equal to the number of persons in the taxpayer’s household.
(b) The standard deduction provided for in subdivision (a) shall be in lieu of all deductions other than those which are to be subtracted from gross income in computing adjusted gross income under Section 17072.
(c) (1) The provisions of this section shall be applied in lieu of the provisions of Sections 63(c) and 63(f) of the Internal Revenue Code, relating to standard deductions.
(2) Notwithstanding paragraph (1), Section 63(c)(5) of the Internal Revenue Code, relating to limitations on the standard deduction of certain dependents, and Section 63(c)(6)of the Internal Revenue Code, relating to certain individuals not eligible for the standard deduction, shall apply, except as otherwise provided. For purposes of this paragraph, the amount specified in Section 63(c)(5) of the Internal Revenue Code shall be adjusted for inflation in accordance with the provisions of Section 63(c)(4) of the Internal Revenue Code.
(d) For each taxable year beginning on or after January 1, 1988, and before July 1, 2027, the Franchise Tax Board shall recompute the standard deduction amounts prescribed in subdivision (a). That computation shall be made as follows:
(1) The California Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.
(2) The Franchise Tax Board shall compute an inflation adjustment factor by adding 100 percent to that portion of the percentage change figure which is furnished pursuant to paragraph (1) and dividing the result by 100.
(3) The Franchise Tax Board shall multiply the standard deduction amounts in the preceding taxable year by the inflation adjustment factor determined in paragraph (2), and round off the resulting products to the nearest one dollar ($1).
(4) In computing the standard deduction amounts pursuant to this subdivision, the amount provided in paragraph (2) of subdivision (a) shall be twice the amount provided in paragraph (1) of subdivision (a).
(e) (1) For purposes of this section, “federal poverty line” means the poverty line defined by the United States Office of Management and Budget based on the most recent data available from the United States Bureau of the Census pursuant to subsection (2) of Section 9902 of Title 42 of the United States Code.
(2) On or before July 1, 2027, and annually thereafter, the Franchise Tax Board shall publish, on its internet website, the most recent federal poverty lines to be used for the standard deduction for that taxable year.
Text of AB 2591 as introduced, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions