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FTB Payment Plan Calculator (California Franchise Tax Board)
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Owe the California Franchise Tax Board? This FTB payment plan calculator shows how long an installment agreement takes to clear your balance, what the state's 7% interest adds, and whether you fit the $25,000 / 60-month online rules. It runs privately in your browser; nothing is saved or sent.
How it works: the FTB lets individuals who owe $25,000 or less, can pay within 60 months, and have filed the past 5 years of returns apply online. Interest runs at 7% a year (the FTB rate for July 1 through December 31, 2026), plus a one-time $34 setup fee added to the balance. Enter your balance and monthly payment below.
Estimated time to pay off
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This is an estimate only, not an FTB determination. It assumes your balance already includes any penalties and applies the current 7% rate (the FTB resets it every six months and charges interest until paid). Eligibility, penalties, and terms depend on your account. Confirm with the FTB before relying on this.
Facing Both the FTB and the IRS?
Many Californians owe the state and the IRS at the same time, and the FTB is aggressive with liens, levies, and license holds. We handle state and federal tax debt together, set up the right payment plan, and pursue relief where you qualify. Free, honest case review.
How an FTB payment plan (installment agreement) works
An FTB payment plan is a monthly installment agreement with the Franchise Tax Board. You apply, the FTB reviews the request, and once approved you get an acceptance letter with the payment details. Processing can take up to 90 days, and the FTB tells you to keep making payments in the meantime so the account does not go to collections or your wages get garnished while you wait.
For individuals, the FTB's eligibility rules for applying online are three: the amount due does not exceed $25,000, you can pay it within 60 months, and you have filed all your income tax returns for the past 5 years. Most plans run three to five years. The FTB charges $34 to set up the agreement and adds it to your balance. You may still be asked for a financial statement before approval, and the FTB says a tax lien may be a condition of the arrangement.
The cost that quietly adds up is interest. The FTB resets its rate every six months, and for July 1 through December 31, 2026 it is 7% a year on personal income tax underpayments. It accrues on the unpaid balance for the life of the plan, which is why the calculator above shows the interest line separately from the fee.
Businesses get tighter terms: a $25,000 limit, 12 months to pay, a $50 setup fee, and every return filed. The FTB notes its online business application has limited availability.
How to apply for a California FTB payment plan
- Pull your current balance from your MyFTB account. That figure, with penalties already in it, is the one to enter above.
- Confirm the last five years of California returns are filed. An unfiled year blocks the online application.
- Apply online at ftb.ca.gov under Pay, then Payment plans, if you owe $25,000 or less and can clear it in 60 months.
- If you cannot apply online, call the FTB's payment plan line at 800-689-4776 or mail the Payment Plan Request Form. The FTB will not take an online application from anyone who already has an installment agreement, a wage garnishment, a bank levy, or another collection order.
- Keep paying while the request is pending. The $34 fee is added to the balance once the plan is approved.
FTB payment plan rules vs. IRS payment plan rules
Most Californians who owe the state also owe the IRS, and the two plans run on different rules. Here is how they line up as of October 2026, from each agency's own site.
| Rule | California FTB (individuals) | IRS (individuals) |
|---|---|---|
| Balance limit to apply online | $25,000 | $50,000 for a long-term plan; under $100,000 for a short-term plan |
| Time to pay | 60 months or less; typically 3 to 5 years | Short-term plan: 180 days or less. Long-term plan: monthly until paid |
| Setup fee | $34, added to the balance ($50 for a business) | $0 short-term. Long-term online: $29 direct debit or $69 other; $107 or $178 by phone or mail. Low income: $29 fee waived, $69 fee reduced to $43 |
| Filing requirement | All income tax returns filed for the past 5 years | All required returns filed |
| Interest while on the plan | 7% a year (July 1 to December 31, 2026), reset every six months | Federal underpayment rate, set quarterly, plus penalties as they apply |
| Financial statement | May be required for approval | Generally only above the online thresholds |
| Collection during the plan | A tax lien may be a condition of the arrangement | The IRS generally does not take enforced collection while a plan is pending or in effect |
| Processing time | Up to 90 days | Online approval is usually immediate |
Sources: California FTB, Payment plans · California FTB, Interest and estimate penalty rates · IRS, Online payment agreement application · IRS, Payment plans and installment agreements.
Run the federal side through our IRS payment plan calculator, then add the two monthly figures together. That combined number is what has to fit your budget, and it is the number the FTB and the IRS will each test against your income if they ask for financials. If the total is out of reach, the IRS Fresh Start program and an offer in compromise are the federal routes to look at; California runs its own offer program too.
FTB wage garnishment: the earnings withholding order
When the FTB garnishes wages for income tax it sends your employer an earnings withholding order for taxes, form FTB 2905. The employer has to give you a copy within 10 days, send the first payment within 15 days of the pay period, and keep sending money every payday until the balance is paid or the FTB releases the order. An employer that ignores it can be held responsible for the debt, so expect payroll to comply.
The amount: a personal income tax EWOT can collect up to 25% of your pay until the balance is paid in full. The FTB works the exact figure from your pay period and your required deductions (federal and state income tax, Social Security, state disability), and it gives employers an Earnings Withholding Calculator and a payment amount table to get it right. Only the FTB can change the amount; your employer cannot lower it on request.
What stops it. The FTB's own answer is to pay in full, then call the number on the order with your payroll fax number handy so the release can go straight to your employer. If you cannot pay in full, the FTB will modify a garnishment for financial hardship, and MyFTB shows whether you are eligible to request a lower withholding. A payment plan is the usual way out, with one catch: once an EWOT is in place you cannot apply for the plan online. You call 800-689-4776, set up the agreement by phone, and ask the representative to address the order as part of it. Our wage garnishment release service handles that call for state and federal orders together.
| FTB order | Used for | How much it takes |
|---|---|---|
| Earnings withholding order for taxes (EWOT, FTB 2905) | Past due income tax and taxpayer liability penalties | Up to 25% of your pay, each pay period, until paid in full |
| Order to withhold (OTW, FTB 2900) | Bank accounts and other assets held by a third party | 100% of available assets or the balance due, whichever is less |
| Continuous order to withhold (COTW, FTB 2910) | Payments you are entitled to, such as rent or contract income | 25% of each payment for an individual, 100% for a business, for 12 months or until paid |
| Earnings withholding order (EWO), non-tax | Court-ordered debt and vehicle registration collections | The lesser of 20% of weekly disposable earnings or 40% of the amount above minimum wage |
Sources: California FTB, Withholding orders · California FTB, Wage garnishments for taxes · California FTB, Help with withholding orders · California FTB, How much to withhold for VRC and COD.
What this FTB estimate can’t tell you
California’s Franchise Tax Board runs its own collection system on its own rules, and being in good standing with one agency says nothing about the other.
- Federal debt is separate. An FTB arrangement does not touch anything owed to the IRS, and the two can collect at the same time.
- Approval is the FTB’s call. They review income, filing history and the balance, and they can ask for financial documents.
- Collection can continue alongside a plan. The FTB says a lien may be a condition of the agreement, and it can intercept state refunds and other payments owed to you.
- Interest keeps accruing for as long as a balance remains.
Your current FTB balance is in your MyFTB account, and it is the number that counts. If the plan payment does not fit, a free case review with our team covers both the state and federal balances in one call, and our pricing page shows the investigation fee up front: $495 for individuals, $695 for businesses.
Common questions
How does an FTB payment plan work?
You apply for an installment agreement with the Franchise Tax Board and pay the balance down monthly. Individuals who owe $25,000 or less, can pay it within 60 months, and have filed their income tax returns for the past 5 years can apply online at ftb.ca.gov. The FTB adds a $34 setup fee to your balance and may take up to 90 days to process the request, so keep paying while you wait.
What interest rate does the California FTB charge?
The FTB sets its rate every six months. For July 1, 2026 through December 31, 2026 the rate on personal income tax underpayments is 7% per year. Interest keeps accruing on the unpaid balance for the whole plan.
Is there a fee to set up an FTB payment plan?
Yes. The Franchise Tax Board charges $34 to set up an individual installment agreement and $50 for a business agreement. The fee is added to your balance rather than paid up front.
How much can the FTB garnish from my wages?
An FTB earnings withholding order for taxes (form FTB 2905) can take up to 25% of your pay each pay period until the balance is paid in full. Your employer has to comply, and the FTB can hold an employer responsible for the debt if it does not. Only the FTB can lower the amount, and MyFTB shows whether you qualify to request a modification.
Is there an FTB garnishment calculator?
The FTB publishes an Earnings Withholding Calculator for employers that figures the amount to withhold from each paycheck from the pay period and the employee's required deductions. For a quick estimate, take your disposable pay after required taxes and multiply by 25%; that is the most an EWOT for taxes can take. The calculator on this page does the other half: how a monthly payment plan would clear the balance instead. If you wanted the FTB withholding calculator for your paycheck, that is a different tool on ftb.ca.gov for setting the state tax your employer takes out.
Does an FTB payment plan stop wage garnishment?
If you already have an earnings withholding order, the FTB will not let you apply for a plan online; you have to call its payment plan line at 800-689-4776. Ask the representative whether the agreement will release the order, and have your employer's payroll fax number ready, because the FTB sends any release or modification to the employer directly. Paying in full is the one release the FTB promises on its site, and it will modify an order for financial hardship.
Can I get a California FTB payment plan if I owe more than $25,000?
You can still request one, just not through the online application. Call the FTB instead. It may require a financial statement before approving the plan, and a tax lien may be a condition of the arrangement.
How do FTB payment plan rules differ from the IRS rules?
The IRS lets individuals apply online for a long-term plan when they owe $50,000 or less and charges $29 (direct debit) or $69 (other methods) to set it up online. The FTB's online limit is $25,000 paid within 60 months, with a $34 fee. The two agencies collect separately, so a federal plan does nothing for a California balance.
Clarity Tax Relief is not affiliated with the California Franchise Tax Board, the IRS, or any government agency. This calculator is general information, not individualized tax or legal advice; exact terms, penalties, interest, and eligibility depend on your account, and no outcome is guaranteed.
More tools: IRS Payment Plan Calculator · CSED Calculator · California Tax Debt Relief · What Tax Relief Costs · IRS Help Center. Reviewed by Melissa Ly, Chief Tax Officer.
How does the IRS differ from the California Franchise Tax Board?
| IRS (federal) | California Franchise Tax Board | |
|---|---|---|
| Time to collect an assessed balance | Generally 10 years from the date the tax was assessed | 20 years to collect on a liability, running from the date the latest liability becomes due and payable |
| Late-filing penalty | 5% of the tax due for each month or partial month, up to a maximum of 25% | 5% of the amount due for each month or part of a month unpaid, maximum 25% |
| Late-payment penalty | 0.5% of the unpaid taxes for each month or part of a month, not exceeding 25% | 5% of the unpaid tax, plus 0.5% for each month or part of a month, not to exceed 40 months |
| Tax lien | Notice of Federal Tax Lien; released within 30 days after the tax debt is paid | Becomes public record and is effective for at least 10 years, and may be extended |
| Taking wages or accounts | Wage levy, with part of your wages exempt under Publication 1494 | Earnings withholding order for taxes; a personal income tax order to withhold collects 100% of available assets or the balance due, whichever is less |
Figures from IRS, Topic no. 202, Tax payment options · California FTB, Statute of limitations on collection actions · IRS, Failure to file penalty · IRS, Failure to pay penalty · California FTB, Penalties and interest · IRS, Topic no. 201, The collection process · California FTB, Liens · IRS, Information about wage levies · California FTB, Withholding orders.
How to use this California FTB payment plan calculator
- Enter the state balance only; run the IRS figure separately, because the two agencies do not share a plan.
- Check the monthly figure against what a federal plan would also take, since most people owe both.
- Allow for California penalties continuing to accrue while a plan is in place.
- Decide the order you tackle them in with the two collection windows in view, not just the balances.
“Generally, we can collect unpaid tax liabilities for up to 20 years after the date the latest tax liability becomes due and payable for that tax year.”
California FTB, Statute of limitations on collection actions
The passage quoted above is from California FTB, Statute of limitations on collection actions.