California FTB Payment Plan: Rules, Fee and How to Apply
Last reviewed by Calculus Tax in-house Settlement Officer
If you owe the California Franchise Tax Board $25,000 or less and can pay it off in 60 months or less, you may qualify for an FTB installment agreement. A $34 setup fee is added to your balance. If you have an active wage garnishment, you can't apply online; call the FTB at 800-689-4776 instead.
Quick answer
If you owe the California Franchise Tax Board $25,000 or less and can pay within 60 months, you may qualify for an FTB installment agreement. The FTB adds a $34 setup fee to your balance. If you have an active wage garnishment, call 800-689-4776 instead of applying online. IRS and FTB payment plans are separate.
| Maximum balance | $25,000 |
|---|---|
| Maximum term | 60 months |
| Setup fee | $34, added to your balance |
| Apply | Online, or call 800-689-4776 |
| With a wage garnishment | Cannot apply online; call |
| FTB collection period | Generally 20 years (R&TC 19255) |
Who Qualifies for an FTB Installment Agreement
Per the FTB, you may qualify if the amount due does not exceed $25,000 and you can pay it in 60 months or less. The FTB notes that setting up an agreement can help prevent your balance from being sent to collections or your wages being garnished.
The $34 Setup Fee
The FTB charges $34 to set up an installment agreement, and the fee is added to your balance rather than paid upfront.
How to Apply
Apply online through the FTB, or call 800-689-4776. You cannot apply online if you have a wage garnishment (earnings withholding order); in that case, call. Have your balance and a monthly amount you can afford ready.
If You Owe More Than $25,000
The standard installment agreement is limited to balances of $25,000 or less paid within 60 months. If you owe more or need longer, contact the FTB to discuss options, which may require financial information. An FTB offer in compromise is another option if you cannot pay in full.
Keep the Plan in Good Standing
Make every payment on time and keep filing and paying current-year California taxes. Interest and penalties generally continue to accrue on the unpaid balance until it is paid, so paying more when you can lowers the total cost.
If the FTB Is Already Garnishing Your Wages
With an active Earnings Withholding Order for Taxes, your employer withholds 25% of your pay after required subtractions until the balance is paid or the order is released. Call the FTB to discuss a payment arrangement. See FTB wage garnishment.
FTB and IRS Plans Are Separate
A California installment agreement does not cover federal taxes, and an IRS payment plan does not cover California taxes. If you owe both, you need a plan with each agency. Compare the federal options in IRS payment plan options.
Help Setting Up an FTB Payment Plan
The FTB generally has 20 years to collect, so a sustainable plan matters. Calculus Tax reviews your FTB and IRS balances, and our in-house Settlement Officer helps set up payments you can keep with both agencies. See California FTB tax relief or contact us.
Frequently Asked Questions
How much can I owe and still get an FTB payment plan?
The FTB's installment agreement is for amounts due of $25,000 or less that you can pay in 60 months or less.
How much does an FTB payment plan cost?
$34 to set up, which the FTB adds to your balance.
Can I apply for an FTB payment plan online?
Yes, unless you have a wage garnishment. With a garnishment, call 800-689-4776.
What if I owe the FTB more than $25,000?
Contact the FTB to discuss options, which may require financial information, or ask about an offer in compromise.
Does an IRS payment plan cover my California taxes?
No. The IRS and FTB are separate agencies, and each needs its own arrangement.
How long does the FTB have to collect?
Generally 20 years under California Revenue and Taxation Code section 19255.
What can change the answer
Notice type, issue date, filing history, account status, deadlines, and current agency procedures can change the available next step. Bring the complete notice and account records to a qualified review.
Tax rules and collection procedures can change and depend on the account. Federal claims should be checked against current IRS guidance; California claims should be checked against the California Franchise Tax Board. See our editorial methodology for sourcing and update standards.
Results depend on your facts and on IRS or state decisions. Calculus Tax, Inc. is not affiliated with the IRS or any government agency.
When professional help may make sense
Calculus Tax, Inc. can review notices, organize financial information, explain available paths, and communicate with the IRS or California agencies when representation is appropriate. The right next step depends on your facts, deadlines, filing history, and ability to pay.
We are based in Burbank and serve clients in Burbank and throughout Los Angeles County. See our local service-area pages for location-specific information.
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