Which income does California not tax for non-residents?

In the context of California tax law, the correct understanding pertains to global income, which refers to all income an individual earns, regardless of the location where it is sourced. For non-residents, California only taxes income that is generated from California sources. This means that a non-resident would not be subject to tax on income earned outside of California, regardless of where that income is generated globally.

Therefore, the distinction lies in the fact that non-residents are only liable for California state taxes on income earned within the state's jurisdiction. In contrast, global income encompasses all income from various sources, and since it includes earnings from outside California, it is not subject to California taxation for non-residents. This understanding is key for non-residents to accurately assess their tax obligations in California.