Resident and Nonresident Withholding Guidelines - FTB Pub. 1017

Sep 19, 2026

Resident and Nonresident Withholding Guidelines (FTB Pub. 1017) provides California Franchise Tax Board guidance for withholding on payments to nonresident independent contractors (including entertainers), rent or royalty payments to nonresidents, and distributions to nonresident beneficiaries. It also explains resident and foreign nonresident partner withholding requirements, outlines key legal authorities in the Revenue and Taxation Code, and summarizes general withholding rules, income subject to withholding, exemptions, allocation, reduced withholding and waivers, and reporting/remitting responsibilities and penalties. It includes referenced resources, forms, and contact channels.

LanguageEnglish

CategoryGeneral

FormatPDF

Pages23

Reading Time8 min

AccessFree to download

Purpose

Law References

What’s New

Frequently Asked Questions

General Withholding Requirements

Income Subject to Withholding

Entities Subject to Withholding

Withholding Exemptions

Income Allocation

Reduced Withholding and Waivers of Withholding

Nonwage, Independent Contractors, Rents and Royalties, Beneficiaries of Estates and Trusts

Entertainment

Domestic Pass-Through Entities

Foreign (Non-U.S.) Partners

Reporting and Remitting Withholding Amounts/Due Dates

Withholding Agent Liability and Penalties

Requirement to File a California Tax Return

Where to Get Forms and More Information

Index

Resident and Nonresident Withholding Guidelines FTB Pub. 1017 (REV 03-2012) State of California Franchise Tax Board For additional information, contact Withholding Services and Compliance Telephone: 888.792.4900 916.845.4900 Our automated telephone system allows you to access important information seven days a week, 24 hours a day. If the system does not completely answer your questions, [you may speak with a representative 8 a.m. to 5 p.m. weekdays](you may speak with a representative 8 a.m. to 5 p.m. weekdays), except state holidays. | To get forms, publications, and other withholding information, go to our website or email us:
Website: [ftb.ca.gov](ftb.ca.gov)
Email Address: [wscs.gen@ftb.ca.gov](wscs.gen@ftb.ca.gov)
(nonconfidential email) | | | --- | --- | | Fax: | 916.845.9512 | | Mailing Address: | WITHHOLDING SERVICES AND COMPLIANCE MS F182 FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0651 | | Express Mail/Overnight Delivery: | WITHHOLDING SERVICES AND COMPLIANCE MS F182 | | | FRANCHISE TAX BOARD | | | SACRAMENTO CA 95827 | | Get FTB 1131, Franchise Tax Board Privacy Notice, at [ftb.ca.gov](ftb.ca.gov and)[ and](ftb.ca.gov and) search for privacy notice, or call us at 800.338.0505. If outside the United States, call 916.845.6500.
Internet and Telephone Assistance/Asistencia Por Internet y Teléfono | | [Website/Sitio web:](Website/Sitio web: ftb.ca.gov)[ ftb.ca.gov](Website/Sitio web: ftb.ca.gov) Telephone/Teléfono: 800.852.5711 from within the United States/Dentro de los Estados Unidos 916.845.6500 from outside the United States/Fuera de los Estados Unidos TTY/TDD: 800.822.6268 for persons with hearing or speech impairments/Personas con discapacidades auditivas y del habla Table of Contents PAGE Purpose ........................................................................................ 4 Law References ................................................................................. 4 What’s New ..................................................................................... 4 Frequently Asked Questions ........................................................................4 General Withholding Requirements ................................................................. 4 Income Subject to Withholding ..................................................................... 6 Entities Subject to Withholding..................................................................... 6 Withholding Exemptions .......................................................................... 7 Income Allocation................................................................................ 9 Reduced Withholding and Waivers of Withholding .....................................................10 Reduced Withholding........................................................................10 Waivers of Withholding ......................................................................11 Nonwage, Independent Contractors, Rents and Royalties, Beneficiaries of Estates and Trusts ................12 Entertainment ..................................................................................14 Domestic Pass-Through Entities ...................................................................14 Foreign (Non-U.S.) Partners .......................................................................17 Reporting and Remitting Withholding Amounts/Due Dates ..............................................17 Domestic (Nonforeign) .......................................................................18 Foreign (Non-U.S.) Partners ..................................................................19 Withholding Agent Liability and Penalties ............................................................19 Requirement to File a California Tax Return ..........................................................20 Where to Get Forms and More Information .....

FAQs

What kinds of payments require withholding under these guidelines?

Withhold on payments to nonresident independent contractors (including entertainers), rent or royalty payments to nonresidents, and distributions to nonresident beneficiaries. The publication also covers domestic and foreign nonresident partner withholding requirements.

Which California laws are cited for withholding requirements?

The document cites California Revenue and Taxation Code (R&TC) Section 18662 for withholding of California income or franchise taxes to nonresidents on California source income. It also references backup withholding rules and provisions making the withholding agent liable to remit required withholding.

Does the guidelines address withholding for payments related to personal services in California?

Yes. It explains that nonresidents are taxed on income from California sources, including payments for personal services performed in California, and that the source is determined by where the personal services are performed rather than where the nonresident lives or where the contract is entered.

Sep 19, 2026

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