California tax payment plan with the FTB
California’s Franchise Tax Board calls this option an installment agreement. Those who owe no more than $25,000, can settle the balance inside 60 months and have filed returns for the past 5 years can use the online application.
- Cap for online applications
- $25,000
- Longest term for individuals
- 60 months in length
- Setup fee
- For a personal plan: $34
- Interest late in 2026
- 7% a year
Who meets the FTB rules for an installment agreement?
Three tests are listed for individuals on the FTB payment plans page. You need a balance of $25,000 or less. You must be able to clear the balance in 60 months or less. Income tax returns for each of the past 5 years have to be on file. Most people get 3 to 5 years to pay under the plan.
Businesses have less time. That page lists a $25,000 ceiling, the same one. Businesses must file every business return and settle the balance within 12 months.
What you pay and how long it takes after you apply
After approval is granted, individuals pay $34 and businesses pay $50. You do not pay this charge upfront. Instead, it goes on your balance. Processing may take as long as 90 days. When it finishes, you receive an acceptance letter in the mail with your payment details. While you wait, the FTB asks you to keep making payments. The goal is to stop collection action, penalties and interest from building up.
When you must call instead of applying online
If you already have an FTB agreement, you cannot request a plan online. Another collection order, a levy against your bank or a wage garnishment also blocks online requests. In those cases, FTB application options are by phone or mail, using the Payment Plan Request Form. The FTB may ask for a financial statement. The agreement may also require a tax lien.
Penalties and interest keep going
You can spread the bill over time with a plan, though the debt does not freeze. On its interest rates page, the FTB lists a yearly rate of 7% for personal income tax underpayments. That period runs from July 1 to December 31, 2026.
Under the penalties and fees page, unpaid tax carries a late-payment penalty of 5%. For every month the tax stays unpaid, it adds 0.5%, for up to 40 months. If the FTB has to take involuntary action, it also charges a collection cost recovery fee. For individuals, the fee is $362 as of July 1, 2026.
Managing your plan in MyFTB
Log in to MyFTB, then choose Request or Manage Payment Plan to make changes. The payment plan help page at the FTB lists the options you can pick:
- Check the status of your request 2 days after applying online or 90 days after applying on paper.
- Change the payment amount, the due date or your bank details.
- You may request an early payoff in full or let the FTB know that hardship stops you from paying.
- Ask at least 5 days before the due date if you want to skip one payment. Your plan then runs longer and interest keeps growing.
If you leave California’s bill unpaid
Once you owe money, the FTB holds a statutory lien over your California property. The FTB lien page says the FTB can place a Notice of State Tax Lien in the public record when letters go unanswered, payments are missed and no plan is set up. That record stays on file at least 10 years and can block a loan, a sale or a refinance.
It can also send withholding orders to your employer, your bank or even your tenants. Federal payments can be intercepted by the Treasury Offset Program and the FTB collections overview page lists that and other tools.
Do you owe money to the IRS as well? An FTB plan and an IRS plan are separate agreements and each one carries its own payment. Both have to stay up to date at once.
Nearby states
Do you owe both the FTB and the IRS?
Handling an FTB balance and an IRS balance together? A licensed tax pro can help you pick amounts for both installment payments on a free call, amounts you can keep up with.
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