$10,000 tax for income over $100K for mental health tax?

Question

My mom has been saying there is a flat $10,000 tax applied to those who make $100K or above. The tax is for mental health. I can't find any corroboration of that online. I found a 1% tax on incomes over 1 million for mental health. Can anyone well versed in tax law clarify this for me? Thanks.

Answer 1

In November of 2004, California voters passed Proposition 63. The measure imposed a 1 percent tax (or as they like to call it a "Mental Health Services Surcharge") on personal incomes exceeding $1 million and is intended to benefit Californians with serious emotional or mental disturbances.

This applies to about 25,000 taxpayers at the top of the earnings heap in California.

The previous top personal income tax bracket in CA was 9.3%. Now the top tax rate for those high earners is effectively 10.3%.

So to try to put a finer point on your mom's comments...$10,000 would be the minimum amount that someone would pay when their income reaches the $1 million dollar threshold (not the $100K threshold she said). And it is not a flat tax...it is 1%...so the $10,000 tax amount can go much higher for high income individuals.

Estimates are that the tax generates around $600 million dollars per year, most of which is distributed to counties to expand mental health services.

Answer 2

There is a 1% mental health tax in California for taxpayers whose taxable income is over $1m. I actually had a case like that with one of may clients, which in a year in which he sold a lot of his stock options his CA income was over $1m and suddenly he owed an extra 1%.

Answer 3

That is not true or they would have nailed us for even more than they did. By the time we got done with our taxes we needed a mental health professional.

Answer 4

Your mom is pulling your leg on this one - there is no such tax.