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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9/15/2012 – repealed effective 4/1/2019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9/15/2012 – repealed effective 4/1/2019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’s Mariposa County Healthcare Authority sales and use tax expires June 30, 2004.

Effective July 1, 2004, the sales and use tax rate in Mariposa County, California will be 7.25%, down from 7.75%. Any collections of the MCHA sales or use tax after this date must be returned to the customer or forwarded…

California increases state rate and partial exemptions; locals lowered.

As of July 1, 2004, the state sales and use tax rate increases from 6% to 6.25%. However, as part of this approved rate increase, voters also approved a decrease in the local tax rates, therefore leaving the unchanged combined…

Online sales tax may be option for California fiscal crisis.

Legislators in California, some of whom have historically opposed a sales tax of online purchases, are now rethinking their stance, mostly due to the $35 billion budget gap. This fiscal crisis is one of the worst in the state’s history…

California use tax can now be reported on income tax return.

It is now easier to report use tax in the state of California. A Use Tax line has been added to the California Income Tax Return, allowing taxpayers to report use tax on any purchases made during the tax year…

California reporting of use tax explained.

In California, a new line has been added to the 2003 income tax returns in which taxpayers must report use tax owed for out-of-state purchases. The Franchise Tax Board has found that many taxpayers are confused by this addition and…

California announces in-state voluntary disclosure program.

Purchases of tangible merchandise for storage, use, or other consumption in California from out-of-state vendors not collecting California tax are subject to a use tax liability on the purchase price of such property. Effective January 1, 2004, California instituted an…

California manufacturing exemption to expire.

Recently passed laws in California include a provision for the removal of the partial exemption from the state portion of the sales and use tax for property used in manufacturing. The law pertaining to this exemption, for sales dated on…

California rate changes.

Recently passed laws in California will affect several types of taxes, one in particular being the sales and use tax rate. Components of the statewide 7.25% sales and use tax rate change will change, effective July 1, 2004. Among these…

California has reenacted its Managed Audit Program.

It is scheduled to be operative January 1, 2004. At the discretion of the State Board of Equalization (SBE), and consistent with the efficient use of audit resources, taxpayers who meet the following criteria could be considered candidates for a…

California electronic funds transfer program.

As of June 27, 2003, the California State Board of Equalization (SBE) regulation that implements the current practice of payment of sales and use taxes by electronic funds transfer (EFT) will come into affect. This regulation mandates all taxpayers with…

California exemption explained.

In the state of California, the government exemption for sales and use tax does not apply to federal contractors purchasing materials for the job because they are not considered agents of the government. This would also include construction contractors. However,…

Revised manufacturing exemption certificate for California explained.

Beginning December 3, 2002, the manufacturer’s exemption certificate and manufacturer’s use tax declaration will show both the beginning and expiration date of a partial exemption for the leasing of qualified property. Prior to December 3rd, the certificate and declaration were…

California to possibly extend Internet tax moratorium.

The Revenue and Taxation committee approved a bill which could possibly extend the moratorium on the Internet Tax out all the way to January 1, 2008. This moratorium would not only cover Internet access and computer services but would also…

California public tax hearings.

As requested last month by Governor Gray Davis, The California Commission on Tax Policy in the New Economy has decided to solicit public comment on issues of tax policy prior to issuing an interim report at the end of April.…

California’s proposed resolutions to money troubles.

California’s multi-billion dollar budget crisis is the reason behind so many recent taxation issues and proposed legislation. Governor Gray Davis recently proposed in his January 10, 2003 Budget Address, to increase the state sales and use tax rate by 1%…

California sales and use tax amendment affects publishers.

A state regulation has recently been amended for clarification purposes regarding publishing. Regulation 1543 states that any transfer of copy or a manuscript, cartoon and/or comic strip from an author to a publisher explicitly for publication purposes is a nontaxable…

California nexus created by out-of-state online retailer.

In California, the distribution of coupons can be considered a selling activity under state law. The California State Board of Equalization determined an out-of-state online retailer was responsible for use tax on sales to all California customers because of their…

California’s timber partial-exemption rule promulgated.

As of September 1, 2001, the sale, storage, use, or other consumption of off-road commercial timber harvesting equipment and machinery is exempt from California sales and use tax. As of January 1, 2002, the exemption applies to the 5% state…

Simplified payments in California.

A formula has been created in California under the Alternative Method for Reporting Use Tax (AMRUT). The idea behind this program was to try and make it easier on taxpayers to calculate use tax. This formula includes a percentage of…

California technology transfer agreement defined.

California has defined a technology transfer agreement as a legally binding contract that gives a third-party permission to manufacture and sell products that are otherwise protected under a copyright or patent the seller maintains. All revenue received for tangible personal…

California exemption of medicines.

As of December 20, 2001, sales and use tax does not apply to the sale or use of medicines when sold or furnished by way of prescription, from pharmacist, physician, dentist, podiatrist, or health facility for the treatment of human…

California court finds promotional items taxable.

In California, a recent appellate court decision found Yamaha Corporation was subject to use tax on “gifts” or promotional items shipped out of state. Yamaha removed musical instruments from inventory, tax-free, and shipped them via common carrier to retailers and…