California Form 540 Line 46: Renter’s Credit (2025 Return)

Updated October 24, 2026. Quick answer: Line 46 of California Form 540 is the Nonrefundable Renter’s Credit. The booklet gives you a Qualification Record of questions to answer first, and the answers decide whether you enter a credit amount on the line. The amount on line 46 is added with the other credits on line 47 and reduces the tax carried to line 48.

What this line does

The form’s own label for the line reads “Nonrefundable Renter’s Credit. See instructions”. The booklet’s instruction heading names it “Nonrefundable Renter’s Credit”. Line 46 sits on Form 540 Side 3, in the credits block that runs from line 40 to line 48. It is part of the California Form 540 line by line series.

The instruction opens with the basic test: “If you paid rent for at least six months in 2025 on your principal residence located in California, you may qualify to claim the nonrefundable renter’s credit which may reduce your tax.” It then sends you to a worksheet-style page: “Complete the Nonrefundable Renter’s Credit Qualification Record included in this booklet.”

Who it applies to

The Qualification Record opens with its own description of the person it is for: “If you were a resident of California and paid rent on property in California, which was your principal residence, you may qualify for a credit that you can use to reduce your tax.” The record also says to “Answer the questions below to see if you qualify.” It adds a note for tax software users: “The tax software product you use to e-file will help you find out if you qualify for this credit and will figure the correct amount of the credit automatically.”

For state income tax purposes the record explains that “references to a spouse, husband, or wife also refer to a California Registered Domestic Partner (RDP), unless otherwise specified.” Its “Do not mail this record. Keep with your tax records.” line tells you what to do with it afterward.

What the instructions say

The record asks the questions in this order. Each one ends with a go to or stop here direction.

Question 11 turns to the amount, which the next section quotes.

The figures the form prints

Question 2 ties the credit to California adjusted gross income on line 17 with two limits, each printed as its own line: “$53,994 or less if single or married/RDP filing separately” and “$107,988 or less if married/RDP filing jointly, head of household, or qualifying surviving spouse/RDP”.

Question 11 prints the credit amounts by filing status, one bullet each: “Single, enter $60 on Form 540, line 46.” “Head of household or qualifying surviving spouse/RDP, enter $120 on Form 540, line 46.” “Married/RDP filing jointly, enter $120 on Form 540, line 46.” The joint bullet adds an exception: “If one spouse/RDP claimed the homeowner’s tax exemption and you lived apart from your spouse/RDP for the entire year, enter $60 on Form 540, line 46.”

The married/RDP filing separately bullet reads: “if you and your spouse/RDP lived in the same rental property and both qualify for this credit, one spouse/RDP may claim the full amount of the credit ($120), or each spouse/RDP may claim half the amount ($60 each).” It continues: “If you and your spouse/RDP lived apart for the entire year and you qualify for this credit, you may claim half the amount of the credit ($60).”

Where the result goes next

The record ends with the instruction “Enter your credit amount on Form 540, line 46.” On the form, line 47 reads “Add line 40 through line 46. These are your total credits”, and line 48 reads “Subtract line 47 from line 35. If less than zero, enter -0-”. The booklet’s instructions for that last line say “If the amount on line 47 is more than the amount on line 35”.

The record also asks for the street address and landlord details of the rental. For the wider state picture, see California retirement taxes, and for property tax help that homeowners meet instead, see property tax breaks for seniors in California.

Edition and line numbers

This page reads California 540 Forms and Instructions, 2025 Personal Income Tax Booklet, and Form 540, California Resident Income Tax Return (2025), both from the Franchise Tax Board, for tax year 2025, the current file the Franchise Tax Board served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.

Common mistakes

• Mailing the record in with the return. It says “Do not mail this record. Keep with your tax records.”
• Overlooking a homeowner’s exemption in the household. The record says “You do not qualify for this credit if you or your spouse/RDP received a homeowner’s property tax exemption at any time during the year.”
• Assuming a married couple filing separately always splits the credit the same way. The record says “one spouse/RDP may claim the full amount of the credit ($120), or each spouse/RDP may claim half the amount ($60 each).” when both spouses lived in the same rental property.

Related: California retirement taxes, property tax breaks for seniors in California, California tax brackets, and Form 1040 lines 19 to 21 and total credits.

Sources

• California 540 Forms and Instructions, 2025 Personal Income Tax Booklet, Franchise Tax Board: www.ftb.ca.gov
• Form 540, California Resident Income Tax Return (2025), Franchise Tax Board: www.ftb.ca.gov
• Related official page (not quoted): Franchise Tax Board, 2025 Personal Income Tax Booklet page: www.ftb.ca.gov

Read from the state revenue documents linked above on October 24, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.