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9/15/2012 – repealed effective 4/1/2019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9/15/2012 – repealed effective 4/1/2019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

California SBE and Barnes & Noble.com Reach Settlement

On May 29, 2008, a resolution was reached between the California State Board of Equalization (SBE) and Barnes & Noble.com, canceling two tax determinations against Barnes & Noble.com and waiving claims for past sales and use taxes, interest, and penalties.…

California Court Rules on Computer Service Contracts

The California Court of Appeals concluded that optional computer service contracts sold with computers for a single lump-sum price were not subject to California sales and use taxes. These mixed transactions were bundled in which goods and services are inextricably…

California Food Combination Packages Taxability Discussed

In a California Tax Information Bulletin, the state explains the taxability for food packaged to include both food and non-food items – combination packages. Effective April 2007, pursuant to Regulation 1602, Food Products, which was recently amended to include combination…

California In-State Voluntary Disclosure Program Set To Expire

Currently, the state allows qualified purchasers within California, who are not otherwise required to hold a seller’s permit, to report and pay their use tax liability with a three-year statute of limitations. However, with the expiration of California Code Sec.…

California Regulation on Misuse of Resale Certificate Amended, Penalities Increased

Recent amendments to California regulations dealing with sales for resale have increased the penalties for misuse of a resale certificate. Effective June 5, 2007, in addition to fines imposed at 10% or $500, whichever is greater, for improper payment or…

Distinction between Optional and Mandatory Tips Reflected in California

A recent amendment classifies and distinguishes between optional and mandatory tips.

California Taxability of Flowers Sold by Internet Sellers Clarified

California amended their regulation to define the term “florists” and clarify the applicability of sales and use taxes to the sale of flowers by Internet sellers. “Florist” is defined as “a retailer who conducts transactions for the delivery of flowers,…

Special California Sales and Use Tax Reporting Periods Available

The California Board of Equalization has released revised instructions and a new form, explaining how taxpayers can request special reporting periods for sales and use tax. The Board has generally required businesses to file their sales and use tax returns…

California Law Increases Penalty for Withholding of Collected Tax.

Effective January 1, 2007, any person who collects California sales tax reimbursements or use tax, and fails to timely remit those amounts to the California State Board of Equalization is liable for a penalty of 40 percent of the amount…

Expanded California Artwork Exemption Takes Effect

Certain leased original works of art are exempt from California sales and use tax.

California Use Tax Applied to Out-of-State Wholesaler/Drop Shipper

In California, any previous owner of tangible personal property who distributes property sold by an out-of-state retailer to a California customer is deemed a retailer of that property and is responsible for collection of tax on that property. This position…

California Amnesty Program

The California State Board of Equalization extended the deadline on its amnesty program until January 1, 2008. The extension applies to the remittance of unreported use taxes by retailers. The general Sales and Use Tax Law offers an 8-year statute…

California Rules “”Brick and Mortar”” Stores Created Nexus for Online Retailer.

In a recent decision by the California District Court of Appeals, the court ruled that “brick and mortar” stores in the State of California were acting as agents for an online retailer giving the online retailer nexus in the state.…

REMINDER — California Amnesty Program to Expire March 31, 2005

The State of California recently authorized an amnesty program effective from February 1, 2005 through March 31, 2005. The program applies to personal income, corporation, franchise (income), and sales and use taxes for reporting periods beginning before January 1, 2003.…

California Issues Follow-Up Informational Letter to December 2004 Amnesty Meetings.

The California State Board of Equalization has issued an informational letter in response to questions proposed at the recently held amnesty information meetings. The letter specifically addresses what the Board thought were the main areas of concern. Those areas are:…

California Issues Answers to Frequently Asked Questions Surrounding Amnesty.

The California State Board of Equalization has provided answers to frequently asked questions surrounding the current sales and use tax amnesty program. The Board submitted these answers in a bulletin format for taxpayers to help them better understand the program…

California Ceases to Permit Manufacturing Equipment Exemption.

In two recent amendments to California regulations, the State Board of Equalization stated that the partial manufacturing equipment exemption as it relates to the purchase and lease of tangible personal property used in manufacturing is no longer in effect as…

California enacts Tax Amnesty Program for 2005.

Governor Schwarzenegger has just signed S.B. 1100 authorizing an amnesty to run from February 1, 2005 through March 31, 2005. The program shall apply to personal income, corporation, franchise (income), and sales and use taxes for reporting periods beginning before…

California Court of Appeals Addresses Municipality Competition Ban.

In a recent decision by the Second Appellate District California Court of Appeals, it was found that an agreement between an office products retailer and a city was in violation of the municipality competition legislation. In an effort to negotiate…

California Rules That Popcorn Sold in Theaters is Not Taxable

In a ruling regarding a refund claim, California ruled that popcorn sold in movie theaters is not subject to California sales and use tax due to the fact that it is not intended to be sold as a “hot food…

California state agencies may only contract with registered vendors.

Effective January 1, 2004, California state departments and agencies may contract only with vendors, contractors, or affiliates of vendors or contractors who are registered for sales and use tax purposes with the State of California. When offering a contract to…

California allows filing extension for eligible vendors.

Since California did not adopt a budget by the June 30, 2004 deadline, and may not be able to make payments to creditors due to the lack of budget, vendors that make sales to the state of California may request…

California extends use tax requirements on vessels, vehicles, and aircraft.

Effective from October 1, 2004 to July 1, 2006, vehicles, vessels, and aircraft purchased in another state by residents of California must remain outside of California for more than half of the first 12 months of ownership to be exempt…

Guidelines set on who is allowed to make contracts with state agencies.

Multiple states have recently passed or introduced legislation setting guidelines on who is allowed to make contracts with state agencies.