California Sales Tax

California Sales Tax Guide (2026)

7.25% statewide, reaching 11.25% once district taxes stack, plus the SB 122 change that starts taxing remotely accessed software on January 1, 2027.[1]

5 min read • Reviewed by Tax Advisory Team • Verified • Sources: CDTFA & RTC
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Quick Facts

Sales Tax at a Glance

Statewide base rate
7.25% [1]
State portion of that
6.00% [1]
District tax range
0.10%–2.00% each [2]
Combined rate range
7.25%–11.25% [3]
Highest rate
Lancaster & Palmdale, 11.25% [4]
Sourcing rule
Hybrid, not pure destination [5]
Economic nexus
$500k / year [6]
Physical nexus
Any CA presence [7]
Upcoming law change
SB 122, 1/1/27 [8]
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SB 122 taxes remotely accessed software from January 1, 2027

Signed on June 29, 2026, SB 122 redefines tangible personal property to include digital products, capturing prewritten software that is downloaded or accessed remotely.[8] Any advice that California does not tax SaaS now needs a date qualifier:

Prewritten software, downloaded Prewritten software, remotely accessed Custom software still exempt E-books, music & video excluded Digital assets excluded CDTFA rulemaking still pending
Until then, the old rule holds: Regulation 1502 treats remote computer access as a nontaxable service, so true SaaS remains untaxed through December 31, 2026.[9] CDTFA held an implementation workshop in July 2026 but had not issued final regulations at the time of writing.
Estimate

California sales tax calculator

California · statewide base 7.25%
Presets are verified. For an exact address, choose Custom.
Rate applied–
Estimated sales tax–
Total with tax–

Estimate only. District rates change up to four times a year, so confirm your address with CDTFA’s rate lookup[3] before filing, or let CrownGlobe handle it.

Rates & Registration

California Sales Tax Rates, Nexus & the 7.25% question

Rate components

State-level rate6.00%
Mandatory local add-on1.25%
Statewide base7.25%
Combined range7.25%–11.25%

The rate is quoted two ways. 6.00% is the state-level portion; the 7.25% everyone cites adds a 1.25% local rate imposed by state law. 7.25% is the true floor anywhere in California.[1]

Who must register

Either trigger applies: economic nexus ($500,000 of California sales in the current or prior calendar year, with no transaction-count test), or physical presence such as an office, employees, in-state sales agents or inventory held in a fulfilment centre.[6]

Sourcing is hybrid: the 1% Bradley-Burns local tax follows the seller’s participating California location, while district tax follows the delivery address wherever the retailer is engaged in business, which since 2019 means statewide above $500,000.[5]

Compliance

Sales Tax Registration and Filing

A seller’s permit is free and covers state, local and district collection.

How to register

  • Confirm nexus→
  • CDTFA registration→
  • Get seller’s permit→
  • Frequency assigned→
  • File online

The permit is free and often issued the same day, though CDTFA may require a security deposit.[10]

Filing & due dates

FrequencyAssigned byDue
MonthlyCDTFA assignmentLast day of next month
QuarterlyCDTFA assignmentApr / Jul / Oct / Jan 31
Quarterly prepayOver $17,000 / month24th, plus quarterly return

CDTFA assigns frequency per account rather than by a published table; the $17,000 monthly prepayment trigger is the one figure fixed in statute.[11] Late filing or payment carries a 10% penalty plus interest.[12]

Pricing

Sales Tax & Nexus Pricing

Multi Tax Filing – $50 Per State/Month

ServiceWhat’s Included
Multi-state registrationNexus tracking, permit setup, and state agency coordination.
Monthly filingSales tax returns filed in every registered state.
Exemption & audit supportCertificate handling and notice response.
Get Started with Multi-State Filing
Taxability

Taxable vs. exempt

California taxes tangible goods broadly but very few services, which is why the SB 122 software change matters so much.[13]

Generally taxable

  • Tangible retail goodsRTC 6051
  • Hot prepared food & restaurant mealsReg. 1603
  • Prewritten software on physical mediaReg. 1502
  • Remotely accessed softwareFrom 1/1/2027, SB 122
  • Fabrication labourReg. 1546
  • Handling chargesReg. 1628

Generally exempt

  • Groceries for home consumptionRTC 6359
  • Prescription medicinesRTC 6369
  • Custom softwareReg. 1502
  • True SaaS, through 12/31/2026Reg. 1502
  • Separately stated actual freightReg. 1628
  • Sales for resaleReg. 1668
Worth flagging: bundling any tangible item into an otherwise electronic sale makes the whole transaction taxable. Shipping a backup disc or printed manual with a download turns an exempt sale into a taxable one.[14]
Reference

Glossary of key terms

Nexus
The connection to a state substantial enough to require tax registration.
District tax
A voter-approved local add-on stacking on the 7.25% statewide base.
Bradley-Burns tax
The 1% local component allocated to the seller’s participating California location.
Engaged in business
CDTFA’s test for when a retailer must collect district tax in a given district.
Digital product
SB 122’s new category capturing prewritten software delivered or accessed electronically.
Resale certificate
A Regulation 1668 document letting a registered buyer purchase stock tax-free.
FAQ

Sales Tax FAQs

Both figures are correct but describe different things. 6% is the state-level portion. 7.25% adds a 1.25% local rate imposed under state law, and 7.25% is the minimum that applies anywhere in California.

11.25%, in Lancaster and Palmdale in Los Angeles County. Both rose to that level on April 1, 2025 and were unchanged through the quarter ending June 30, 2026.

$500,000 of California sales in the current or preceding calendar year. There is no separate transaction-count test, and sales by related persons count toward the total.

Not through December 31, 2026, because Regulation 1502 treats remote computer access as a service. SB 122 changes that from January 1, 2027 for prewritten software accessed remotely.

Separately stated delivery charges at actual cost are generally exempt. Anything billed as handling, including a combined shipping and handling line, is taxable at least in part.

CDTFA assigns monthly, quarterly, quarterly prepay, fiscal yearly or yearly per account. Accounts averaging more than $17,000 a month in taxable sales must prepay.

Verification

Sources & methodology

  1. CDTFA – Sales & Use Tax Rate Detail
  2. CDTFA – Local & District Taxes
  3. CDTFA – Quarterly Rate Schedule (PDF)
  4. CDTFA – L-974 Rate Notice (PDF)
  5. CDTFA – Online Retailers & Local Tax
  6. CDTFA – Wayfair Collection Requirements
  7. CDTFA – Annotations, RTC 6203
  8. CDTFA – SB 122 Workshop Materials (PDF)
  9. CDTFA – Regulation 1502
  10. CDTFA – Pub. 107, Seller’s Permit
  11. CDTFA – Pub. 73, Your Seller’s Permit (PDF)
  12. CDTFA – RTC 6591, Penalties
  13. CDTFA – Common Exemptions
  14. CDTFA – Pub. 109, Internet Sales
Methodology: Every figure is checked against CDTFA or the California Revenue & Taxation Code directly, never copied from a third-party guide. District rates change up to four times a year, so this page is reviewed each quarter.
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