Most California residents know that California Proposition 30 includes tax changes projected to raise about $6 billion a year which should mostly be used for funding public education but also to reduce California’s budget deficit.

Everyone who is a resident or visitor in California will be affected by the sales tax change. The California sales and use tax will increase 1/4% effective January 1, 2013. The increase expires after December 31, 2016.

Only a privileged few will be affected by the changes for California income taxes, which are retroactively effective January 1, 2012 and will expire after December 31, 2018.

The California income tax rate will increase from 9.3% to 10.3% for singles and married filing separately with taxable income over $250,000, heads of household with taxable income over $340,000 and married persons filing joint returns with taxable income over $500,000.

The California income tax rate will increase from 9.3% to 11.3% for singles and married filing separately with taxable income over $300,000, heads of household with taxable income over $408,000 and married persons filing joint returns with taxable income over $600,000.

The California income tax rate will increase from 9.3% to 12.3% for singles and married filing separately with taxable income over $500,000, heads of household with taxable income over $680,000 and married persons filing joint returns with taxable income over $1,000,000.

Remember the 1% Mental Health Tax also applies for taxable income over $1,000,000, so those taxpayers will have a total marginal tax rate of 13.3%. (Each dollar of taxable income over $1,000,000 will be taxed 13.3 cents.)

According to the California Franchise Tax Board, there will be no penalty for failure to pay the additional taxes in your 2012 estimated tax payments. The additional tax is due April 15, 2013. You might want to pay the additional tax by December 31 for a deduction on your 2012 federal income tax return, but watch the alternative minimum tax.