CA SB1137

Lowers the threshold for deducting medical and dental expenses on California state income taxes from 7.5% to 4% of federal adjusted gross income, effective for taxable years beginning January 1, 2026

Addresses rising healthcare costs, citing that health insurance premiums have increased 55% since 2010—at least twice as fast as wages or inflation

Requires the Franchise Tax Board to submit a report by February 1, 2030 detailing the number of taxpayers claiming the deduction and total dollar amounts claimed for each year starting in 2026

Takes effect immediately upon enactment as a tax levy measure