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California Sales Tax

On this page you will find handy sales and use tax information about California.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to California that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

6% Note that the true California state sales tax rate is 6%.  There is a statewide county tax of 1.25% and therefore, the lowest rate anywhere in California is 7.25%.  We have listed the combined state/county rate as the state rate to eliminate confusion.
Range of Local Rates

0% – 11%
Local Rates Apply to Use Tax

Yes
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

9/15/2012 – repealed effective 4/1/2019
AFFILIATE NEXUS

9/15/2012 – repealed effective 4/1/2019
ECONOMIC NEXUS

4/1/2019 – see state notice
MARKETPLACE NEXUS

10/1/2019

8/28/2023 – Clarification
Sales Tax Amnesty
Status

Inactive

Amnesty Filing Dates

September 1, 2013 - December 2, 2013

Go to City of Los Angeles Amnesty Page
AMNESTY INCLUSION PERIODS

TAX TYPES AND CONDITIONS

The following City of Los Angeles Taxes: Business, Utility Users Taxes (Telephone, Electricity, Gas), Commercial Tenant’s Occupancy, Transient Occupancy, and Parking Occupancy Taxes.
AMNESTY BENEFITS

Waiver of penalties.

Status

Inactive

Amnesty Filing Dates

October 4, 2011 - October 3, 2012

Go to City of Los Angeles Amnesty Page
AMNESTY INCLUSION PERIODS

From October 4, 2011 through October 3, 2012, look-back period for prior City of Los Angeles Business Taxes is three years. Beginning October 4, 2012, the period is limited to five years.

TAX TYPES AND CONDITIONS

City of Los Angeles Business Tax.
AMNESTY BENEFITS

Penalties on late payment of taxes may be waived.

Status

Inactive

Amnesty Filing Dates

Voluntary registration with the CDTFA and filing by September 25, 2019

Go to California Amnesty Page
AMNESTY INCLUSION PERIODS

A “qualifying retailer” will not be assessed tax by the CDTFA on sales made prior to April 1, 2016 and will be relieved of penalties for sales made for the period April 1, 2016 to March 31, 2019.

TAX TYPES AND CONDITIONS

Sales and use tax. Effective June 27, 2019, a “qualifying retailer” meets all of the following conditions:

• The retailer is not registered or has not registered with the CDTFA prior to December 1, 2018
• The retailer had not filed sales or use tax returns or made sales or use tax payments prior to being contacted by the CDTFA
• The retailer voluntarily registers with the CDTFA, and by September 25, 2019, files completed tax returns for all tax reporting periods on and after April 1, 2016, and pays in full the taxes due or applies for an installment payment agreement, but only if final payment under the terms of the agreement is paid no later than December 31, 2021
• The retailer is or was engaged in business in California solely because the retailer used a marketplace facilitator to facilitate sales for delivery in California and the marketplace facilitator stored the retailer’s inventory in this state
AMNESTY BENEFITS

Limited lookback and waiver of penalties for sales made for the period April 1, 2016 to March 31, 2019.

Administration Information
Streamlined Sales Tax Status

Advisory State
NUMBER OF TAXING AUTHORITIES

323 Sales Tax Jurisdictions
HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Origin *California is mixed. State, county, and city taxes are based on the origin, but district taxes are based on the destination (the buyer)
Sales Tax Return Due Date

Last day of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

California Resale Certificate
TYPES OF EXEMPTIONS

California has many exemptions and exclusions, they can best be classified by categories as follows: Necessities of Life (food, health and housing related); General Public Benefit (alternative energy, pollution control, veteran vendors, etc.); Industry Based (transportation, entertainment, petroleum, manufactured housing, leasing); Other (electric power generation & distribution; printed materials and sales messages; space flight, sales of certain food plants and seeds, and sales of prescription medicine, various others).

 

Entity types of exemptions: General Public Benefit (museums and public arts; nonprofit, religious & educational; veterans organizations); Other (sales to the US Government)

 

California Exemption Certificate Forms
History & Fun Facts
HISTORY

  • California has the highest presumed state-level sales tax rate, at 7.25 percent which is actually made up of a 6.25% state rate and a state-wide 1% county rate. In addition, some cities and many special purposes authorities can impose sales tax.
  • As of July 1, 2017, the California Board of Equalization transferred the bulk of its tax duties to the California Department of Tax and Fee Administration (CDTFA) and the Office of Tax Appeals.
FUN FACTS
  • Every quarter, the CDTFA posts the Top 500 Sales & Use Tax Delinquencies in California, including an interactive map. Please, don’t be shamed into compliance in this way.
  • Beware of California’s definition and taxation of “fixtures.” This creates a lot of audit issues for construction and service providers.
  • Some exemptions exist in an attempt to promote certain types of consumer choices. For example, there is an exemption for “fresh,” but not prepared, foodstuffs.

Jurisdictions in California, Colorado and Illinois Approve Soda Taxes

On November 8, 2016, the San Francisco, Oakland, and Albany jurisdictions in California and the Boulder jurisdiction in Colorado approved “soda taxes” through ballot measure.

California Amends Regulation for Newspapers and Periodicals

California amended a regulation regarding newspapers and periodicals to clarify how sales and use tax apply to lump-sum charges for mixed newspaper subscriptions that include the right to access digital content.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Contractors Should Consider California Manufacturing and R&D Partial Exemption

California advises construction contractors to consider manufacturing and R&D partial exemption. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

California Makes Treatment of Tips and Gratuities Consistent with Records Kept for IRS

Effective January 1, 2015, California has amended a sales and use tax regulation regarding taxable sales of food products.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

California Adopts Regulation to Implement Partial Manufacturing and R&D Exemption

On July 17, 2014, California adopted a regulation to implement the partial sales and use tax exemption for manufacturing and research and development equipment which was effective July 1, 2014.

Tax Applies to Transactions Using Virtual Currency in California

The California State Board of Equalization (BOE) has issued a notice that discusses the sales and use tax applicability for transactions in which virtual currencies (e.g. Bitcoin) are accepted as payment for sales of goods and services in the same…

California Delays Tax on Medi-Cal Managed Care Plans

Implementation of California’s Medi-Cal managed care sales tax program has been delayed pending federal approval. The implementation date has not yet been determined. The California Board of Equalization (BOE) will notify taxpayers once the program is approved. Medi-Cal managed care…

San Francisco Ordinance Does Not Impose Tax on Service Fees Charged by Online Travel Companies

Under the plain language of the San Francisco ordinance that imposes a California local transient occupancy tax of 6% of the rent charged by the operator on transients for occupying a hotel, online travel companies (OTCs) had no tax liability.…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Los Angeles Enacts Tax Amnesty Program

The City of Los Angeles has enacted a tax amnesty program, effective September 1, 2013 through December 2, 2013.

California Enacts New Tax on Medi-Cal Managed Care Plans

California has enacted legislation that imposes a sales tax at the rate of 3.9375%, effective July 1, 2013 through June 30, 2016, on the retail sale of Medi-Cal health care services sold at retail in the state. Counties, cities, and…

California Enacts Manufacturing and R&D Equipment Exemption

California Gov. Jerry Brown has enacted a state sales and use tax exemption for purchases of manufacturing and research and development (R&D) equipment by biotechnology and manufacturing companies. Effective July 1, 2014 through July 1, 2022, the sale, storage, use,…

California Amends Regulation on Government Supply Contracts

California has amended a sales and use tax regulation regarding U.S. government supply contracts. The amended regulation provides that the term “retail sale” means a sale for any purpose other than resale in the regular course of business and provides…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

California’s Sales Tax Rate Increase Becomes Effective January 2013

California’s sales and use tax rate will increase by 0.25%, from 7.25% to 7.5%, effective January 1, 2013, due to voter approval of Proposition 30. The increased tax rate is applicable from January 1, 2013 through December 31, 2016. Voters…