How to Fill Out California FTB Form 588: Nonresident Withholding Waiver Request

California Form 588, the Nonresident Withholding Waiver Request, is the filing a nonresident payee submits to ask the Franchise Tax Board to waive the 7 percent withholding that would otherwise apply to California-source payments over $1,500 in a calendar year. You complete four short parts, pick a reason code that fits your situation, and send it to the FTB through MyFTB, by mail, or by fax at least 21 business days before the payment date. If the FTB approves the request, it issues a Waiver Determination Notice that you hand to the withholding agent so they can release the full payment.

When Form 588 Is the Right Form

Under Revenue and Taxation Code Section 18662, a withholding agent must withhold 7 percent of gross California-source payments to nonresident individuals and non-California business entities once those payments cross $1,500 in a calendar year.¹ Covered payments include rent, royalties, prizes, compensation for services, and partnership distributions.² Form 588 asks the FTB to waive that withholding entirely.

Two other forms cover nearby situations. If you want a reduced rate rather than a full waiver, you file Form 589 instead. If you qualify to self-certify as exempt — because you are a California resident, an S corporation, a partnership or LLC with a permanent place of business in California, or a corporation qualified to do business in the state — you give the withholding agent Form 590 directly and skip the FTB review.³ Form 588 is the path for nonresidents who cannot self-certify and need an official FTB determination.

Pick Your Reason Code First

The form requires one reason code, and choosing the wrong one is the fastest way to get your request denied. The 2026 form lists five:⁴

Code A applies if you have California tax returns on file for the two most recent taxable years in which you had a filing requirement and you are current on all FTB tax obligations.
Code B applies if you are making timely estimated tax payments for the current year and are current on all FTB tax obligations.
Code C applies to a corporation that is not qualified to do business in California and has no permanent place of business here but files as part of a combined report with a corporation that does. Attach Schedule R-7.
Code D applies to a newly admitted S corporation shareholder, partner, or LLC member. Enter the admission date on the form.
Code E covers anything else. Attach a written explanation and supporting documentation. Military members and civilians supporting the military in a combat zone or contingency operation use this code and attach a copy of their orders.

Most filers fall under Code A or Code B. If you have been filing California returns on time with no outstanding balance, choose A. If you are newer to California-source income and have started quarterly estimated payments, choose B.

Filling Out the Form

Part I: Payee Information

Enter the payee’s legal name, address, and taxpayer ID. Individuals use a Social Security Number or ITIN. Business entities use a Federal Employer Identification Number. California corporations and entities registered with the Secretary of State also enter their California corporation number or SOS file number.⁴ Include a daytime phone and fax number so the FTB can reach you with questions.

Part II: Withholding Agent Information

Enter the name, address, and taxpayer ID of the person or entity making the payment. If you receive California-source income from more than one agent, file a separate Form 588 for each.

Part III: Type of Income and Reason Code

Describe the income — rent from California real property, royalties, independent contractor fees, partnership distributions, or whatever applies. Enter the expected payment dates and the total estimated California-source amount for the period. Then enter your reason code. If you pick Code C or Code E, or if you are a sole proprietor, include the required supporting documentation.³

Part IV: Signature

Sign and date the form. An unsigned form is rejected automatically.³ If a preparer completes the form for you, the preparer signs and provides their contact information, but the payee’s signature is still required.

How to Submit It

There are three ways to get the form to the FTB:

Online through MyFTB at ftb.ca.gov. Log in and select “File a Nonresident Withholding Waiver Request.” This is the fastest option.³
By mail to Withholding Services and Compliance, MS F182, Franchise Tax Board, PO Box 942867, Sacramento, CA 94267-0651.³
By fax to the Withholding Services and Compliance fax number listed in the current year’s form instructions on ftb.ca.gov.

Submit at least 21 business days before the payment date.³ Until the withholding agent has the FTB’s Waiver Determination Notice in hand, they must keep withholding at 7 percent.¹

What Happens After You File

The FTB reviews your filing history, account balance, and the reason code you selected. If everything lines up, you receive a Waiver Determination Notice authorizing the withholding agent to stop withholding on the payments described. Give a copy of that notice to your withholding agent. Without it, the agent has no basis to change anything.

If the request is denied, the notice explains why. Common reasons are unfiled returns, an unpaid balance with the FTB, or a reason code that does not match your actual situation. Fix the underlying problem — file the missing return, pay the balance, or switch to the correct code — and resubmit.

How Long the Waiver Lasts

An approved waiver runs for a maximum of 24 months and expires on December 31 of the calendar year following the year it was granted.³ A Code D waiver expires at the end of the calendar year following the admission date you entered; after that, you would need to qualify under Code A or Code B for a new waiver. Once a waiver lapses, the withholding agent must resume withholding at 7 percent unless you file a new Form 588 and receive a fresh determination. Refile well before the expiration date, allowing for the same 21-business-day processing window.

1
Cornell Law Institute. Cal. Code Regs. Tit. 18, 18662-4 – Withholding on Payments (Nonresident Individuals and Non-California Business Entities) – General
2
California Legislative Information. California Code RTC 18662 – Withholding
3
Franchise Tax Board. 2026 Instructions for Form 588 Nonresident Withholding Waiver Request
4
Franchise Tax Board. California Form 588 – Nonresident Withholding Waiver Request