PDF document

- 1 -

Withholding Certificate for Pension or

Annuity Payments
First, Middle, Last Name Social Security Number

Home Address (Number and Street or Rural Route) Claim or Identification Number (if any)
of Your Pension or Annuity Contract

City State ZIP Code

Complete the applicable lines:
1. I elect not to have income tax withheld from my pension or annuity. (Do not complete lines 2, 3, or 4.) 
2. I want my withholding from each pension or annuity payment to be figured using the number of allowances and marital status
shown below:
a. Number of allowances you are claiming from the Regular Withholding Allowances
(Worksheet A).  2a
b. Number of allowances from the Estimated Deductions (Worksheet B).  2b

Single or Married (with two or more incomes) Married (one income) Head of Household
3. I want the following additional amount withheld from each pension or annuity payment. Note: You cannot
enter an amount here without entering the number (including zero) of allowances on line 2b above.  $
4. I want this designated amount withheld from each pension or annuity payment. (Do not complete lines 1, 2, or3.) $

Your Signature Date
Cut Here
Give the top part of this form to your pension payer or annuity. Keep the lower part for your records.

Purpose of Form: Unless you elect otherwise, state law requires A periodic payment is both:
that California Personal Income Tax (PIT) be withheld from
payments of pensions and annuities. • Includable in your income for tax purposes.
• Received in installments at regular intervals over a period
This form DE 4P allows you to: of more than one full year from the pension or annuity’s
(1) Claim a different number of allowances for California PIT starting date. The intervals can be annual, quarterly,
withholding than for federal income tax withholding. monthly, etc.
(2) Elect not to have California PIT withheld from your periodic, For example, if you receive a monthly pension or annuity
or nonperiodic, pension or annuity payments. payment and will continue to receive payments for more than a
year, the payments are periodic. However, distributions from an
(3) Elect to have California PIT withheld on periodic or IRA that are payable upon demand are treated as nonperiodic
nonperiodic payments based on: payments.
(a) The number of allowances and marital status specified. There are some kinds of periodic and nonperiodic payments for
(b) A designated dollar amount. which you cannot use the DE 4P since they are already defined
as wages subject to PIT withholding. Your payer should be able
(4) Change or revoke the DE 4P previously filed. to tell you whether the DE 4P will apply.
Withholding from Pensions and Annuities: Generally, Your certificate is usually effective 30 days after you file the form.
withholding applies to payments made from pension, profit- The certificate stays in effect until you change or revoke it.
sharing, stock bonus, annuity, and certain deferred compensation
plans, from Individual Retirement Arrangements (IRA), and from Methods of Withholding: The payer can use one of the following
commercial annuities. Withholding also applies to property other three methods:
than cash distributed. (1) An amount determined by using the California withholding
In compliance with federal law, California PIT is not to be schedules. Payee completes lines 2 and 3 above.
withheld from pension recipients who reside outside of (2) A dollar amount that you designate. Payee completes line 4
California. above.
Periodic and nonperiodic payments from all the items above are
treated as wages for the purpose of withholding.

DE 4P Rev. 43 (12-23) (INTERNET) Page 1 of 5 CU

- 2 -

(3) Ten percent of the federal withholding amount computed Revoking the Exemption from Withholding: If you want to
pursuant to section 3405 of the Internal Revenue Code (law. revoke your previously filed exemption from withholding
cornell.edu/uscode/text/26). Payee completes line 4 above. for periodic and nonperiodic payments, file another DE 4P
completing lines 1, 2, 3, or 4.
Completing the Form: Fill in your full name, home address,
Social Security number, and the identification number (if any) of Line 2, Withholding Based on Specified Withholding
the pension or annuity. Allowances: If you want withholding to be based on a specified
number of allowances, write the number on line 2, and check the
Line 1, Exemption from Withholding: Check this box if you do filing status box you want. The worksheets accompanying this
not want any PIT withheld from your payment. You do not need form may be used to figure your withholding allowance.
a reason for claiming the exemption from withholding.
Line 3, Multiple Pensions or More than One Income: Indicate
Caution: Remember that there are penalties for not paying additional amount to be withheld from each payment. You may
enough tax during the year, either through withholding or use Worksheet C, accompanying this form, to determine the
estimated tax payments. You may be able to avoid paying additional amount.
quarterly estimated tax to the Franchise Tax Board (FTB) by
having enough tax withheld from your pension or annuity using Line 4, Withholding a Designated Dollar Amount: Indicate
the DE 4P. dollar amount you want withheld on this line (in lieu of claiming
withholding allowances).

DE 4P Rev. 43 (12-23) (INTERNET) Page 2 of 5

- 3 -

Instructions — 1 — Allowances*
When determining your withholding allowances, you must consider your personal situation:
− Do you claim allowances for dependents or blindness?
− Will you itemize your deductions?
− Do you have more than one income coming into the household?
If you have a working spouse, more than one job or income, it is best to figure the total number of allowances you are entitled to claim on
all jobs using the worksheets from only one DE 4P. Allowances can then be claimed with one payer only or split among payers.
Worksheet A Regular Withholding Allowances
A) Allowance for yourself — enter 1 (A) _____________________
B) Allowance for your spouse (if not separately claimed by your spouse) — enter 1 (B) _____________________
C) Allowance for blindness — yourself — enter 1 (C) _____________________
D) Allowance for blindness — your spouse (if not separately claimed by your spouse) — enter 1 (D) _____________________
E) Allowances for dependents — do not include yourself or your spouse (E) _____________________
F) Total — add lines (A) through (E) above and enter on line 2a of the DE 4P (F) _____________________

Instructions — 2 — Additional Withholding Allowances
If you expect to itemize deductions on your California income tax return, you can claim additional withholding allowances.
Use Worksheet B to determine whether your expected estimated deductions may entitle you to claim one or more additional withholding
allowances. Use last year’s FTB Form 540 as a model to calculate this year’s withholding amounts.
You may reduce the amount of tax withheld from your wages by claiming one additional withholding allowance for each $1,000, or fraction
of $1,000, by which you expect your estimated deductions for the year to exceed your allowable standard deduction.

Worksheet B Estimated Deductions
1. Enter an estimate of your itemized deductions for California taxes for this tax year as listed in the
schedules in the FTB Form 540. 1. $ _____________________
2. Enter $10,726 if unmarried head of household or qualifying widow(er) with dependents.
$10,726 if married filing jointly with two or more allowances.
$5,363 if single, dual income, married, or married with multiple employers.
$5,363 if married filing separately or married with “0” or “1” allowance.
3. Subtract line 2 from line 1, enter difference. 3. $ _____________________
4. Enter an estimate of your adjustments to income (alimony payments, IRA deposits). 4. $ _____________________
5. Add line 4 to line 3 and enter the sum. 5. $ _____________________
6. Enter an estimate of your nonwage income (dividends, interest income, alimony receipts). 6. $ _____________________
7. If line 5 is greater than line 6 (if less, skip to line 9), subtract line 6 from line 5 and, enter the difference. 7. $ _____________________
8. Divide the amount on line 7 by $1,000, round any fraction to the nearest whole number.
Enter this number on line 2b of the DE 4P. Complete Worksheet C, if needed. 8. _____________________
9. If line 6 is greater than line 5,
enter amount from line 6 (nonwage income). 9. $ _____________________
10. Enter amount from line 5 (deductions). 10. $ _____________________
11. Subtract line 10 from line 9, enter difference. 11. $ _____________________

Complete Worksheet C
*Wages paid to registered domestic partners will be treated the same for state income tax purposes as wages paid to spouses for California PIT withholding
and PIT wages. This law does not impact federal income tax law. A registered domestic partner means an individual partner in a domestic partner
relationship within the meaning of section 297 of the Family Code (leginfo.legislature.ca.gov/faces/codes.xhtml). For more information, call our Taxpayer
Assistance Center at 1-888-745-3886.

DE 4P Rev. 43 (12-23) (INTERNET) Page 3 of 5

- 4 -

Worksheet C Tax Withholding and Estimated Tax
1. Enter estimate of total wages for tax year 2024. 1. __________________
2. Enter estimate of nonwage income from line 6 of Worksheet B. 2. __________________
3. Add line 1 and line 2 and enter the sum. 3. __________________
4. Enter itemized deductions or standard deduction from line 1 or 2 of Worksheet B, whichever is largest. 4. __________________
5. Enter adjustments to income from line 4 of Worksheet B. 5. __________________
6. Add line 4 and line 5 and enter the sum. 6. __________________
7. Subtract line 6 from line 3 and enter the difference. 7. __________________
8. Figure your tax liability for the amount on line 7 by using the 2024 tax rate schedules below. 8. __________________
9. Enter personal exemptions from line F of Worksheet A x $158.40. 9. __________________
10. Subtract line 9 from line 8 and enter the difference. 10. __________________
11. Enter any tax credits. (See FTB Form 540) 11. __________________
12. Subtract line 11 from line 10 and enter the difference. This is your total estimated tax liability. 12. __________________
13. Calculate the tax withheld and estimated to be withheld during 2024. Contact the payer to request the
amount that will be withheld on your wages based on the marital status and number of withholding
allowances you will claim for 2024. Multiply the estimated amount to be withheld by the number of
pay periods left in the year. Add the total to the amount already withheld for 2024. 13. __________________
14. Subtract line 13 from line 12. Enter difference. If this is less than zero, you do not need additional taxes withheld. 14. __________________
15. Divide line 14 by the number of pay periods remaining in the year and enter the figure on line 3 of the DE 4P. 15. __________________
Note: Your payer is not required to withhold the additional amount requested on line 3 of your DE 4P.
If your payer does not agree to withhold the additional amount, you may increase your withholdings as much as possible by using
the “single” status with “zero” allowances. If the amount withheld still results in an underpayment of state income taxes, you may
need to file quarterly estimates on Form 540-ES with the FTB to avoid a penalty.
These Tables are for Calculating Worksheet C and for 2024 Only
Single Persons, Dual Income
Married or Married with Multiple Employers Married Persons
If The Taxable Income Is Computed Tax Is If The Taxable Income Is Computed Tax Is
Over But Not Over Of Amount Over... Plus Over But Not Over Of Amount Over... Plus
$0 $10,412 1.100% $0 $0.00 $0 $20,824 1.100% $0 $0.00
$10,412 $24,684 2.200% $10,412 $114.53 $20,824 $49,368 2.200% $20,824 $229.06
$24,684 $38,959 4.400% $24,684 $428.51 $49,368 $77,918 4.400% $49,368 $857.03
$38,959 $54,081 6.600% $38,959 $1,056.61 $77,918 $108,162 6.600% $77,918 $2,113.23
$54,081 $68,350 8.800% $54,081 $2,054.66 $108,162 $136,700 8.800% $108,162 $4,109.33
$68,350 $349,137 10.230% $68,350 $3,310.33 $136,700 $698,274 10.230% $136,700 $6,620.67
$349,137 $418,961 11.330% $349,137 $32,034.84 $698,274 $837,922 11.330% $698,274 $64,069.69
$418,961 $698,271 12.430% $418,961 $39,945.90 $837,922 $1,000,000 12.430% $837,922 $79,891.81
$698,271 $1,000,000 13.530% $698,271 $74,664.13 $1,000,000 $1,396,542 13.530% $1,000,000 $100,038.11
$1,000,000 and over 14.630% $1,000,000 $115,488.06 $1,396,542 and over 14.630% $1,396,542 $153,690.24

Unmarried Head of Household
If The Taxable Income Is Computed Tax Is
Over But Not Over Of Amount Over... Plus If you need more detailed information, see the instructions
$0 $20,839 1.100% $0 $0.00 that came with your last California resident income tax
$20,839 $49,371 2.200% $20,839 $229.23 return or call the FTB:
$49,371 $63,644 4.400% $49,371 $856.93
$63,644 $78,765 6.600% $63,644 $1,484.94 If you are calling from within the United States
$78,765 $93,037 8.800% $78,765 $2,482.93 1-800-852-5711 (Voice)
$93,037 $474,824 10.230% $93,037 $3,738.87 1-800-822-6268 (TTY)
$474,824 $569,790 11.330% $474,824 $42,795.68
$569,790 $949,649 12.430% $569,790 $53,555.33 If you are calling from outside the United States
$949,649 $1,000,000 13.530% $949,649 $100,771.80 1-916-845-6500 (Not Toll Free)
$1,000,000 and over 14.630% $1,000,000 $107,584.29

The DE 4P information is collected for purposes of administering the PIT law, and under the authority of Title 22, California Code of Regulations
(govt. westlaw.com/calregs/Search/Index), section 4340-1, and the California Revenue and Taxation Code (leginfo.legislature.ca.gov/faces/codes.xhtml),
including section 18624. The Information Practices Act of 1977 requires that individuals be notified of how information they provide may be used. Further
information is contained in the instructions that came with your last California resident income tax return.
DE 4P Rev. 43 (12-23) (INTERNET) Page 4 of 5

- 5 -

Example for Worksheet C for the Year 2024
Payee estimates pension income to be $1,500 a month and is claiming the standard deduction, and single, 
with one withholding allowance.
           1. Estimate annualized income ($1,500 a month x 12 months). Enter on line 1.       1. $  18,000.00
           2.  Estimated nonwage income.                                                      2. $  8,000.00
           3.  Add lines 1 and 2 and enter total on line 3.                                   3. $ 26,000.00
           4.  Enter amount for single from line 2 of Worksheet B.                            4. $  5,363.00
           5.  Enter adjustments to income shown on line 4 of Worksheet B.                    5.        0.00
           6.  Enter sum of lines 4 and 5.                                                    6. $  5,363.00
           7.  Subtract line 6 from line 3 and enter difference on line 7.                    7. $  20,637.00
           8.  Compute the tax liability for the amount on line 7.
                      Use the 2024 tables for single from Worksheet C under  
                      the entry covering $20,637 (over $10,412 but not over $24,684). 
                      Compute 2.200% of the amount over $10,412 
                      ([$20,637 – $10,412] x 0.02200 = $224.95).           $ 224.95 
                      Additional + tax amount.                             $  114.53 
                      Enter the total on line 13.                 Total  $ 339.48             8. $      339.48
           9.  Enter the amount for one personal exemption on line  9 (1 x $158.40).          9. $      158.40
           10. Subtract line 9 from line 8 and enter the difference on line 10.               10. $     181.08
           11. Enter any tax credits that will be allowed for 2024 (see FTB Form 540).        11.       0.00
           12. Subtract line 11 from line 10 and enter the difference on line 12. This is your
               total estimated tax liability.                                                 12. $     181.08
           13. Calculate the tax withheld and estimated to be withheld during 2024.
                      Withholding on the pension of $1,500 a month claiming single 
                      with one withholding allowance based on the California withholding 
                      schedule for 2024 is $1.52 x 12 = $18.24. 
                      Enter that amount on line 13.                                           13. $     18.24
           14. Subtract line 13 from line 12. Enter difference on line 14.                    14. $     162.84
           15. Divide line 14 by the number of pay periods remaining in the year.
                      ($162.84 % 12 = $13.57)                                                 15. $     13.57
                                                    Enter $13.57 on line 3 of the DE 4P.

DE 4P Rev. 43 (12-23) (INTERNET)                                Page 5 of 5

PDF file checksum: 1469288059

(Plugin #1/9.12/13.0)