California Tax Rebates

When people refer to “California tax rebates,” they are usually talking about refundable state tax credits designed to support low-to-moderate income workers and families.

These credits function much like rebates because they can result in cash back even if you owe no state income tax.

The credits are administered by the California Franchise Tax Board (FTB) and are claimed by filing a California income tax return.

While California previously issued a large one-time rebate—the Middle Class Tax Refund (MCTR)—that program has ended. However, several ongoing refundable credits remain available each year.

Ongoing California Tax Credits (Rebates)

To receive any of the following credits, you must file a California state tax return, even if your income is low enough that you would not otherwise be required to file.

California Earned Income Tax Credit (CalEITC)

The CalEITC is the state’s largest refundable credit and is designed for working individuals and families with low-to-moderate earnings.

Who qualifies:

• Earned income of at least $1
• Earned income not exceeding $31,950 (Tax Year 2024)
• Available to filers using either a Social Security number or an ITIN

Maximum credit:

• Up to $3,644, depending on income level and number of qualifying children

This credit alone can result in a substantial refund for eligible workers, including part-time employees, gig workers, and self-employed individuals.

Young Child Tax Credit (YCTC)

The Young Child Tax Credit provides additional assistance to families with very young children.

Who qualifies:

• Must qualify for the CalEITC
• Must have at least one child under age 6 at the end of the tax year

Maximum credit:

• Up to $1,154 per family
• This credit is fully refundable and is paid in addition to the CalEITC.

Foster Youth Tax Credit (FYTC)

The Foster Youth Tax Credit supports young adults transitioning out of the foster care system.

Who qualifies:

• Ages 18 through 25
• Were in foster care at age 13 or older
• Must also qualify for the CalEITC

Maximum credit:

• Up to $1,154 per eligible individual

Estimating Your Refund

The Franchise Tax Board provides an online EITC Calculator that allows you to:

• Check eligibility for CalEITC, YCTC, and FYTC
• Estimate your potential refund amount before filing

Using the calculator can help ensure you do not miss valuable credits.

Past Program: Middle Class Tax Refund (MCTR)

The Middle Class Tax Refund was a one-time relief program issued in late 2022 and early 2023.

• Payment amounts: $200 to $1,050
• Eligibility: Based on income limits and filing a 2020 California tax return by October 15, 2021
• Status:
• The reissuance period for MCTR payments ended May 31, 2024
• No new applications or payments are available

Recommendation: File Electronically for Faster Refunds

To receive California tax credits as quickly and securely as possible, electronic filing (e-file) is recommended.

Benefits of e-filing include:

• Faster processing and quicker refunds
• Immediate confirmation that your return was received
• Fewer errors compared to paper returns
• Direct deposit options for faster access to your money

Many eligible taxpayers can file for free using:

• CalFile (FTB’s free filing system), or
• IRS Free File partners that support California returns

Bottom line: If you work and earn income in California, filing a state tax return—preferably electronically—is the only way to claim these refundable credits and receive the cash benefits you may be entitled to, even if you owe no tax.