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Nonresident Withholding

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Withholding on domestic nonresidents with California source income

We administer withholding laws pertaining to domestic nonresident payees when any of the following is true:

  • Payee provides services in California. Compensation is considered earned where the payee performs the services.
  • Payee receives California source income that includes, but is not limited to:
    • Leases
    • Rents
    • Royalties
    • Winnings
    • Payouts

Nonresident payees are subject to withholding on California source income regardless of where they live, enter into a contract, or receive payment.

Withholding tools and resources

Below are tools and resources for those who withhold on payments of California source income to nonresidents:

  • Webinars - Our webinars cover a variety of withholding topics – some general and some specific to certain industry types or stakeholders.
  • Withholding forms and publications
    • FTB Pub. 1017, Resident and Nonresident Withholding Guidelines - Provides information about resident and nonresident withholding in a question and answer format.
    • FTB 1076, Withholding on Nonresidents with California Source Income - Withholding agents use this document to inform nonresident payees of California's nonresident withholding requirements.
    • FTB 761 RNR - Most common errors that delay document processing and payment allocation for Form 592.
  • Subscription services - Sign up in one place for email updates on nonresident withholding and other withholding topics.
  • Informational charts:

Electronic options

  • Electronic filing information for nonresident withholding agents.
  • New - Electronic Form 589 Nonresident Reduced Withholding Request - Submission information for nonresidents who request reduced withholding.

Backup withholding

Backup withholding - Payers who perform federal backup withholding must also withhold and remit 7 percent of a reportable payment to us.