California Equipment Financing
Calculate equipment loan and lease payments for your California business. Compare financing options and maximize tax benefits.
California Business Overview
Key economic indicators for equipment financing decisions
Population
39.0M
State Tax Rate
8.84%
Business Climate
Largest state economy, innovation hub, extensive business regulations
Top Industries in California
Major sectors driving equipment financing demand
Most Financed Equipment in California
Equipment types commonly purchased by California businesses
Understanding California's Tax Advantage
How California's 8.84% state income tax affects equipment financing
When you purchase equipment, you can claim tax deductions at two levels: federal and state. Here's how it works in California:
Federal Tax Savings (All States)
- ✓Section 179: Deduct up to $1,250,000
- ✓Federal corporate rate: ~21%
- ✓Example: $100K equipment = ~$21K federal savings
California State Tax Savings
- ✓State income tax rate: 8.84%
- ✓Same Section 179 deduction applies
- ✓Example: $100K equipment = ~$8,840K state savings
Total savings: ~$8,861K (federal + state)
Calculate your exact savings: Use our Section 179 calculator to see the federal and state tax benefits for your specific equipment purchase.
Equipment Financing Options in California
Compare different financing methods for your business
Equipment Loans
Traditional financing where you own the equipment from day one. Ideal for California businesses looking to build assets and claim Section 179 deductions.
Equipment Financing FAQs for California
Common questions about equipment financing in California
What equipment financing options are available in California?
California businesses can access equipment loans, equipment leases, sale-leasebacks, and lines of credit. Many California lenders also offer SBA 504 loans for larger equipment purchases.
What are the typical interest rates for equipment loans in California?
Equipment loan rates in California typically range from 5% to 30% depending on credit score, equipment type, and loan term. Well-qualified California businesses can secure rates as low as 5-8%.
Can California businesses claim Section 179 tax deductions?
Yes! California businesses can deduct up to $1,250,000 in equipment purchases under Section 179 for tax year 2025. This federal tax benefit is available to all U.S. businesses, including those in California.
How does California's 8.84% state tax rate affect equipment financing?
California's 8.84% state tax rate affects the overall tax benefits of equipment financing through Section 179 deductions and depreciation. Use our calculators to see the total tax impact.
What types of equipment are most commonly financed in California?
In California, the most commonly financed equipment includes Tech Equipment, Agricultural Equipment, Restaurant Equipment, Medical Equipment. These align with California's top industries: Technology, Entertainment, Agriculture, Manufacturing.
How long does it take to get approved for equipment financing in California?
California businesses can typically get approved for equipment financing in 24-48 hours with online lenders, or 1-2 weeks with traditional banks. Pre-qualification is often instant.