California charges an 11% excise tax on the retail sale of firearms, ammunition, and firearm precursor parts. The California gun tax, formally the California Firearm and Ammunition Excise Tax (CFET), took effect on July 1, 2024, under Assembly Bill 28 and is separate from regular state and local sales tax.1California Department of Tax and Fee Administration. AB 28 Firearm and Ammunition Excise Tax Administration The legal obligation falls on sellers, but nearly every retailer passes it through to buyers as a line item on the receipt.
What the Tax Applies To
Three categories of goods trigger the tax at the retail level in California: firearms, ammunition, and firearm precursor parts. Each term is defined by the California Penal Code, and the tax applies to both new and used items.2Cornell Law School. California Code of Regulations Title 11, 4303 – Written Guidance and Pictorial Diagrams for the Identification of Firearm Precursor Parts
The precursor-parts piece surprises some buyers. A precursor part is an unfinished frame, receiver, or similar item that can be readily completed into a working firearm. Unfinished lower receivers, sometimes called “80% lowers,” fall inside the definition, so a dealer sale of one triggers the 11% just like a completed handgun.1California Department of Tax and Fee Administration. AB 28 Firearm and Ammunition Excise Tax Administration
Sales shipped out of state are not subject to the tax. The CDTFA treats sales made in interstate or foreign commerce as exempt from both sales tax and the CFET.3California Department of Tax and Fee Administration. Tax Guide for Sellers of Firearm and Ammunition Products – Industry Topics
How Much You Actually Pay at the Counter
The rate is a flat 11% of gross receipts from the retail sale.4California Department of Tax and Fee Administration. Calculating the California Firearm and Ammunition Excise Tax Gross receipts include more than the sticker price. The taxable base also covers merchant credit card fees, discretionary fees, shipping charges to get the item to the delivering dealer, and any fabrication labor charges the dealer adds.5California Department of Tax and Fee Administration. Gross Receipts Subject to Tax and Gift, Raffles, and Promotional Offers
Several fees are carved out of the calculation. Sales tax reimbursement, CFET reimbursement itself, the Dealer Record of Sale (DROS) fee, the Firearm Safety Act fee, and the Safety and Enforcement fee do not count toward the taxable base.5California Department of Tax and Fee Administration. Gross Receipts Subject to Tax and Gift, Raffles, and Promotional Offers So a $37.19 DROS fee is not part of the 11% math.
Stacking With Sales Tax and the Federal Excise Tax
The CFET sits on top of California’s regular state and local sales tax, which runs roughly 7.25% to 10.75% depending on the jurisdiction. Buyers also indirectly absorb the federal excise tax on firearms and ammunition under the Pittman-Robertson Act, which is 10% on handguns and ammunition and 11% on long guns and gets built into the wholesale price before the item reaches a retail shelf.
On a $600 handgun in a city with a 9% sales tax rate, expect about $54 in state and local sales tax plus $66 in CFET, with the federal excise already baked into what the dealer paid at wholesale.
Who Legally Owes the Tax
The seller owes the CFET, not the buyer. The law reaches licensed firearms dealers, firearms manufacturers making retail sales, and ammunition vendors, and these businesses must calculate and remit the tax to the CDTFA whether or not they collect it from customers.1California Department of Tax and Fee Administration. AB 28 Firearm and Ammunition Excise Tax Administration
In practice, retailers pass the cost through and label it “CFET reimbursement” on the invoice. If a retailer accidentally overcollects and does not refund the excess, they must still hand that excess over to the CDTFA.6California Department of Tax and Fee Administration. California Firearm and Ammunition Excise Tax (CFET) Return
Exemptions
The law provides two main exemptions and treats resale in the usual way:
- Sales to active or retired peace officers, or to any law enforcement agency employing that officer, are exempt. The dealer documents the exemption using CDTFA form 230-FET.7California Department of Tax and Fee Administration. Key Guidelines for Sellers of Firearm Products
- A dealer whose total gross receipts from firearms, precursor parts, and ammunition stay below $5,000 in a given quarter owes no CFET on that quarter’s sales.8California Department of Tax and Fee Administration. California Revenue and Taxation Code Section 36021 – Exemptions
- Sales for resale are excluded when the purchasing vendor provides a resale certificate.
Nonprofits do not get a break. There is no exemption for sales to nonprofit organizations, hunter safety programs, or youth shooting sports groups. Ammunition bought by a nonprofit from a California dealer carries the full 11%.
Dealer Registration and Filing
Every licensed firearms dealer, firearms manufacturer, and ammunition vendor selling covered products at retail in California must register with the CDTFA for a CFET Certificate of Registration. This is in addition to any existing seller’s permit, and registration is free.9California Legislative Information. California Revenue and Taxation Code 3603510California Department of Tax and Fee Administration. Tax Guide for Sellers of Firearm and Ammunition Products – Getting Started
Returns are filed electronically each quarter and are due the last day of the month following the end of the quarter. A return for January through March is due by April 30.10California Department of Tax and Fee Administration. Tax Guide for Sellers of Firearm and Ammunition Products – Getting Started
File every quarter, even a zero. A return is required even if you had no sales or qualified for the small-seller exemption. Skipping one can trigger enforcement, including a CDTFA notification to the Department of Justice that puts a dealer license at risk.
Retailers must keep all CFET-related records for at least four years, including invoices, exemption certificates, resale certificates, and documentation supporting the gross receipts reported on returns.11California Department of Tax and Fee Administration. Regulation 1698 – Records
Penalties and Interest for Late Payment
A late filing or late payment brings a penalty of 10% of the amount due for the period.6California Department of Tax and Fee Administration. California Firearm and Ammunition Excise Tax (CFET) Return Interest accrues on unpaid balances for each month or partial month the payment is late. For 2026, the CDTFA’s debit interest rate on unpaid taxes is 10%, equal to the federal IRS underpayment rate plus three percentage points, and the CDTFA updates that rate every January and July.12California Department of Tax and Fee Administration. Interest Rates
Where the Money Goes
After administrative costs, CFET revenue flows into the Gun Violence Prevention and School Safety Fund, which supports violence prevention, education, research, and intervention programs across the state.13California Department of Tax and Fee Administration. Tax Guide for Sellers of Firearm and Ammunition Products
The first $75 million collected annually, or as much as is available, is continuously appropriated to the Board of State and Community Corrections for the California Violence Intervention and Prevention (CalVIP) program, which funds community-based organizations working on violence reduction.14Board of State and Community Corrections. California Violence Intervention and Prevention (CalVIP) Program California was the first state to impose a separate state-level excise tax on guns and ammunition.1California Department of Tax and Fee Administration. AB 28 Firearm and Ammunition Excise Tax Administration
Is the Tax Being Challenged in Court
Yes, but it remains in effect. AB 28 has drawn multiple lawsuits raising Second Amendment concerns. In one case, two federal firearms license holders argued the tax burdens the ability of ordinary citizens to exercise their Second Amendment rights and harms their businesses financially. The San Diego County Superior Court dismissed the challenge in October 2024 on procedural grounds, finding the plaintiffs had not exhausted their administrative remedies, and the plaintiffs appealed in December 2024.15California Department of Tax and Fee Administration. February 2025 Special Taxes Litigation Report
A separate suit backed by the Second Amendment Foundation, Firearms Policy Coalition, California Rifle & Pistol Association, and the National Rifle Association directly challenges the tax’s constitutionality under the Second Amendment. As of early 2025, the CDTFA had filed a motion to dismiss, with a hearing scheduled for September 2025.15California Department of Tax and Fee Administration. February 2025 Special Taxes Litigation Report No court has issued an injunction blocking collection. Dealers must continue collecting and remitting the tax, and buyers should expect to see it on the receipt.