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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9/15/2012 – repealed effective 4/1/2019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9/15/2012 – repealed effective 4/1/2019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.

Tax is Based on Amount Paid to Hotel, Not Amount Charged by Online Travel Companies in California

A California court has found that transient occupancy tax is based on the room rental received by the hotel, not on the amount paid to an online travel company (OTC) by the customer. Santa Monica attempted to enforce its transient…

California Sales Tax Treatment of Deal-of-the-Day Instruments Discussed

The California State Board of Equalization has issued a notice detailing the sales and use tax treatment for Deal-of-the-Day Instruments (DDI). Websites such as Groupon offer DDIs which feature coupons redeemable for merchandise or service at local or national retailers.…

Los Angeles Provides Information on Voluntary Disclosure Program

The Los Angeles Office of Finance has provided information on the voluntary disclosure program that began on October 4, 2011.

California Delays Implementation of Remote-Seller Nexus Law

Enactment of the click-through and affiliate nexus provisions is conditional on federal authorization for states to require sellers to collect taxes on sales of goods to in-state customers regardless of the seller’s location.

California Enacts Click-Through and Affiliate Nexus

California has enacted click-through and affiliate nexus legislation that expands the definition of a retailer engaged in business in California, effective as of June 29, 2011. The definition now includes any retailer who enters into an agreement with a person…

California Decreases Statewide Sales and Use Tax Rate

California’s statewide sales and use tax rate applicable to sales of tangible personal property is scheduled to decrease on July 1, 2011. The current rate – 8.25% – will be reduced to 7.25%. This rate is a combination of 6.25%…

Software Licensed to Operate Switching Equipment Exempt from California Sales Tax

Software licensed by a California taxpayer to a telephone company to operate switching equipment was deemed exempt from sales and use tax under statutes regarding technology transfer agreements (TTAs). The software was copyrighted, contained patented processes, and allowed the telephone…

California Legislation Would Require Notification to Online Purchasers

If enacted, recently passed California legislation would require retailers, who are not required to collect use tax, to provide notification on their retail Internet Web site or catalogue that tax is imposed on the storage, use, or other consumption in…

California Reminds Use Tax Registrants of April Deadline

The California State Board of Equalization (BOE) has notified more than 180,000 taxpayers that they are required to register with the BOE under a new law in order to report and pay their use tax liability for purchases subject to…

California Updates Offer in Compromise Publication

The California State Board of Equalization (BOE) has updated guidance regarding its Offer in Compromise Program for the taxes and fees it administers. An offer in compromise is a proposal to pay BOE an amount that is less than the…

California Registration Requirements Added to Regulation

California legislation enacted in 2009 that imposes registration requirements on qualified purchasers for use tax purposes has been added to Regulation 1699, Permits. Clarification that the provisions refer to seller’s permits has also been added to the regulation. (Regulation 1699,…

California Amends Rules on Refund Dollar Amount Approval Requirements

The California State Board of Equalization (BOE) has amended its rule on approvals required for certain dollar amount refunds. If a Board staff Decision and Recommendation or Supplemental Decision and Recommendation determines a refund in excess of $100,000 (previously $50,000)…

California has Revised its Publication that Addresses the Taxability of Combination Packages and Gift-Wrapping

The California State Board of Equalization has revised its publication on gift-wrapping charges to include the taxability of gift packages with a combination of food and nonfood items. Gift packages that contain only food, such as cheese, crackers, or fruit,…

California Releases New Publication on Voluntary Disclosure Programs

The California State Board of Equalization has issued a publication to provide details on its in-state and out-of-state voluntary disclosure programs. The publication describes what the program is, the difference between the two programs, the eligibility requirements, how to apply…

Special Session Bill on Internet Sales Dies in California Assembly

Bill 27, which proposed to tax certain internet sales, died in the third session of the California Assembly. The bill would have amended the definition of a retailer to include any retailer who entered into an agreement with a California…

New Registration and Reporting Requirements in California

California has issued a news release and special notice informing taxpayers that the new use tax registration and reporting law requires all “qualified purchasers” to register with the BOE and report and pay use tax. A qualified purchaser is a…

California Amends Sales for Resale Regulation

A California sales and use tax regulation discussing sales for resale has been amended to clarify the proper use of qualified resale certificate. The amendments provide that the acceptable resale designation on a purchase order is not limited to the…

California Governor Schwarzenegger Vetoes “”Amazon”” Nexus Provisions

Governor Schwarzenegger vetoed a majority vote tax increase passed by the California legislature after Overstock.com announced that it would pull its affiliate advertising from the State. California lawmakers had proposed a tax on affiliate advertising similar to New York’s “Amazon”…

Fixed Price Contracts Not Exempt From California 1% State Rate Increase

California has issued a supplemental special notice informing taxpayers that fixed price contracts and lease agreements are not exempt from the 1% increase. This is true even if they were entered into before the April 1, 2009 effective date. So,…

California Cell Phone Regulation Provided Safe Harbor from Unfair Competition Claims

The California Court of Appeals has upheld a trial courts decision that a taxpayer’s unfair competition and misleading advertisement claims against a telecommunication provider be dismissed. In compliance with the California Code of Regulation, providers selling cell phones at half-price…

California Increases State Sales and Use Tax Rate

In an effort to resolve the state budget deficit, California will be imposing a 1% temporary increase (from 6.25% to 7.25%) in the state sales and use tax rate, effective April 1, 2009. The 1% increase (specifically dedicated to the…

Legislation Introduced to Change Statutory Definition of “”Retailer Engaged in Business”” in California

The definition of a \”retailer engaged in business in this state\” any retailer entering into an agreement with a resident of California under which the resident, for a commission or other consideration, directly or indirectly refers potential customers of tangible personal property.

California Supplements Exempt if Used to Treat Obesity

California Regulations 1591 and 1602 have been amended to clarify that dietary supplements, when supplied by a physician as part of a weight loss program to treat the disease obesity, are not classified as food products and, therefore, exempt from…

California Taxpayers Reminded of Voluntary Disclosure Program

Effective January 1, 2009, the In-State Voluntary Disclosure Program provides additional benefits to California purchasers who are not required to hold a seller’s permit, but have a use tax liability. The benefits include a three year limitation for the Board…