Personal Income Tax Law: credits: medical expenses.
- Establishes a new state tax deduction of up to $5,000 for out-of-pocket medical expenses.
- Takes effect January 2025 and automatically expires in December 2030.
- Requires annual reports tracking the number of taxpayers claiming the deduction and average amounts.
- Applies only to medical costs not covered by insurance or other reimbursements.
Assembly Member Jeff Gonzalez's proposal to offset rising healthcare costs would allow California taxpayers to deduct up to $5,000 in out-of-pocket medical expenses annually from their state income taxes between 2025 and 2029. The deduction would apply to medical costs paid directly by taxpayers that are not covered by insurance or otherwise reimbursed.
The measure establishes oversight mechanisms requiring the Franchise Tax Board to track the number of taxpayers claiming the deduction and the average amount deducted. Beginning December 2026, the board must submit annual reports to the Legislature detailing these metrics to evaluate the deduction's utilization. The legislation includes provisions to prevent duplicate tax benefits by reducing other medical expense deductions by the amount claimed under this program.
The deduction would automatically expire on December 1, 2030, unless extended through subsequent legislation. As a tax levy, the measure would take effect immediately upon enactment, allowing eligible taxpayers to begin claiming the deduction starting with the 2025 tax year.
 Sharon Quirk-SilvaD Assembly Member | Committee Member |  Not Contacted | |
 Mike GipsonD Assembly Member | Committee Member | Not Contacted | |
 Rosilicie Ochoa BoghR Senator | Bill Author | Not Contacted | |
 Tina McKinnorD Assembly Member | Committee Member | Not Contacted | |
 Jasmeet BainsD Assembly Member | Committee Member | Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
- Establishes a new state tax deduction of up to $5,000 for out-of-pocket medical expenses.
- Takes effect January 2025 and automatically expires in December 2030.
- Requires annual reports tracking the number of taxpayers claiming the deduction and average amounts.
- Applies only to medical costs not covered by insurance or other reimbursements.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Assembly Member Jeff Gonzalez's proposal to offset rising healthcare costs would allow California taxpayers to deduct up to $5,000 in out-of-pocket medical expenses annually from their state income taxes between 2025 and 2029. The deduction would apply to medical costs paid directly by taxpayers that are not covered by insurance or otherwise reimbursed.
The measure establishes oversight mechanisms requiring the Franchise Tax Board to track the number of taxpayers claiming the deduction and the average amount deducted. Beginning December 2026, the board must submit annual reports to the Legislature detailing these metrics to evaluate the deduction's utilization. The legislation includes provisions to prevent duplicate tax benefits by reducing other medical expense deductions by the amount claimed under this program.
The deduction would automatically expire on December 1, 2030, unless extended through subsequent legislation. As a tax levy, the measure would take effect immediately upon enactment, allowing eligible taxpayers to begin claiming the deduction starting with the 2025 tax year.
Sharon Quirk-SilvaD Assembly Member | Committee Member | Not Contacted | |
Mike GipsonD Assembly Member | Committee Member | Not Contacted | |
Rosilicie Ochoa BoghR Senator | Bill Author | Not Contacted | |
Tina McKinnorD Assembly Member | Committee Member | Not Contacted | |
Jasmeet BainsD Assembly Member | Committee Member | Not Contacted |