In this guide
Status
State backup withholdingRequired
Primary source (statute, regulation or agency publication saved in full); (statute text via public.law mirror; FTB pages from a saved extract
Non-wage payments to nonresidentsRequired
Primary source (statute, regulation or agency publication saved in full); (FTB pages from a saved extract
Federal backup withholding under IRC 3406 (24 percent on a missing or mismatched TIN) applies in California exactly as everywhere else; this page covers only what the state adds. The 50-state tables put California next to its neighbours, and the California 1099 filing page covers whether the state wants its own copy of the 1099.
State backup withholding
Trigger
Federal backup withholding under IRC 3406 applies to a reportable payment (payee fails to give a correct TIN or certify exemption). California conforms to IRC 3406 by statute, except interest and dividends and releases of loan funds by financial institutions, and real estate withholding.
Rate
7% of the reportable payment (R&TC 18664(b)). Replaces all other California withholding when both apply (18664(c)); cannot be reduced or waived.
Statute
Cal. Rev. & Tax. Code 18664 (payments on or after Jan 1, 2010); Cal. Code Regs. tit. 18, 18662-0 through 18662-8
Withholding return and forms
Form 592 (Resident and Nonresident Withholding Statement) with Form 592-V voucher for domestic payees; Form 592-Q / 592-PTE for pass-through entities; Form 592-A / 592-F for foreign payees; payee statement Form 592-B
Deposit schedule
Remit by period: Jan 1-Mar 31 due Apr 15; Apr 1-May 31 due Jun 15; Jun 1-Aug 31 due Sep 15; Sep 1-Dec 31 due Jan 15 of following year (differs from federal deposit schedule)
Annual reconciliation
None separate for Form 592 filers (Form 592 is filed each period); Form 592-PTE annual due Jan 31; 592-F annual for foreign
Payee statement
Form 592-B to each payee by January 31 of the following year
Exemptions
Interest and dividends; releases of loan funds by financial institutions; payees exempt from federal backup withholding (government entities, tax-exempt organizations, etc. per IRS Form W-9 list); real estate withholding handled separately
Withholding on non-wage payments to nonresidents
Applies to
Nonresident individuals; corporations, partnerships, LLCs not qualified with the CA Secretary of State and without a permanent CA place of business; nonresident trusts and estates. Covers independent contractor services performed in CA, payments to nonresident entertainers and athletes (including payments routed through agents or promoters), rents, leases, royalties, and distributions to nonresident owners of pass-through entities.
Threshold
Total California-source payments to the payee exceed $1,500 in the calendar year; withhold on the amount above $1,500
Rate
7% of payments
Statute
Cal. Rev. & Tax. Code 18662 and 18668; Cal. Code Regs. tit. 18, 18662-0 to 18662-8
Withholding return
Form 592 with Form 592-V (per period); Form 592-PTE with 592-Q for pass-through distributions; Form 592-A / 592-F for foreign partners
Exemption certificate or waiver
Form 590 (Withholding Exemption Certificate); Form 590-P (previously reported income, partners); Form 587 (Allocation Worksheet); Form 588 (Waiver Request); Form 589 (Reduced Withholding Request)
Payee statement
Form 592-B (Nonresident Withholding Tax Statement) by January 31
Due dates
Jan 1-Mar 31 due Apr 15; Apr 1-May 31 due Jun 15; Jun 1-Aug 31 due Sep 15; Sep 1-Dec 31 due Jan 15; foreign partners 15th day of 4th, 6th, 9th, 12th months; 592-B to payees Jan 31; 592-PTE Jan 31
Exceptions
Payee is a CA resident or entity with permanent CA place of business (Form 590); $1,500 or less per year; payments for goods; services performed entirely outside CA; wages (EDD); intangible income without CA business situs; motor carrier compensation in 2+ states; banks; nonresident corporate directors; tax-exempt organizations, insurance companies, IRAs and qualified plans, CA nongrantor trusts, estates of CA decedents; FTB-approved waiver (Form 588) or reduction (Form 589)
Pass-through entity withholding (out of scope)
Separate pass-through entity withholding on distributions to nonresident owners exists (Forms 592-PTE and 592-Q, 7% domestic; Forms 592-A/592-F foreign). Entity-level withholding on distributions to nonresident owners is a duty of the entity, not of a payer, and is not covered on this page.
What to confirm
- The FTB pages and Publication 1017 were captured as extracted text (the site blocks automated download), and the R&TC 18664 text comes from a public mirror because the legislature’s site could not be retrieved. Confirm the wording on ftb.ca.gov before relying on a quotation.
- When both rules apply to the same payment, the 7 percent backup withholding under 18664 replaces the nonresident withholding under 18662; the payer does not withhold twice.
Sources
Each source below was read and saved on November 1, 2026; the page is built from the saved text. Statutes are cited to the section; department pages and publications to their title and, where shown, revision date.
- https://www.ftb.ca.gov/pay/withholding/backup-withholding.html (read November 1, 2026)
- https://california.public.law/codes/revenue_and_taxation_code_section_18664 (read November 1, 2026)
- https://ftb.ca.gov/forms/misc/1017.html (read November 1, 2026)
- https://www.dgs.ca.gov/Resources/SAM/TOC/8400/8422-195 (read November 1, 2026)
- https://www.ftb.ca.gov/pay/withholding/withholding-on-nonresidents.html (read November 1, 2026)
- https://ftb.ca.gov/pay/withholding/index.html (read November 1, 2026)
- https://www.law.cornell.edu/regulations/california/18-CCR-18662-1 (read November 1, 2026)