The California use tax rate matches the sales tax rate for your address: 7.25% statewide, plus any local district taxes, for a combined rate that ranges from 7.25% up to above 10% in parts of Los Angeles County and other high-district areas. You owe this tax when you buy tangible personal property from an out-of-state seller who didn’t collect California tax, then bring it into the state to use, store, or consume. The rate that applies is tied to where you use the item, not where the seller sits.
How to Find Your Exact Rate
California’s combined rate has two layers. The 7.25% statewide base applies everywhere. On top of that, cities, counties, and transportation authorities add district taxes that voters have approved locally.1California Department of Tax and Fee Administration. Know Your Sales and Use Tax Rate Those district taxes vary widely, which is why rates in two neighboring cities can differ by more than a full percentage point.
The CDTFA runs a free “Find a Sales and Use Tax Rate by Address” tool. Enter the street address where you’ll first use or store the item and the tool returns the exact combined rate.1California Department of Tax and Fee Administration. Know Your Sales and Use Tax Rate District rates shift as new local measures take effect, so check the tool fresh each time rather than reusing a figure from months ago.
What the Rate Applies To
Multiply your address’s combined rate by the purchase price of the item. Separately stated actual shipping or postage charges can be excluded from the taxable amount, but a line labeled only “handling” stays taxable, and a combined “shipping and handling” charge with no breakout gets taxed in full.2Legal Information Institute. California Code of Regulations Title 18, 1628 – Transportation Charges
If you already paid sales or use tax to another state on the same item, California credits that amount dollar for dollar. When the other state’s rate equals or beats California’s combined rate, you owe nothing more. When it was lower, you owe only the difference.3California Department of Tax and Fee Administration. Sales And Use Tax Law – Section 6406 Keep the receipt showing the out-of-state tax paid.
One boundary worth knowing: digital products delivered entirely electronically, such as software downloads, ebooks, apps, streaming services, and cloud-based software, are generally not subject to California sales or use tax at all. If a physical copy ships alongside the download, the whole sale becomes taxable.4California Department of Tax and Fee Administration. Internet Sales (Publication 109) Nontaxable Sales Separately, if you bought through a major online marketplace like Amazon or eBay, the platform itself is required to collect and remit California tax on sales delivered here, so you generally won’t owe use tax on those purchases on your own.5California Department of Tax and Fee Administration. Tax Guide for Marketplace Facilitator Act
How to Report and Pay as an Individual
For personal purchases, use tax is due by April 15 of the year after the purchase. You can report it on your California income tax return or pay the CDTFA directly after the purchase.6California Department of Tax and Fee Administration. California Use Tax For Personal Use
Form 540, Line 91
Most people report on Form 540, Line 91. The line requires an entry: either the amount owed, or a checked box confirming you owe nothing or already paid the CDTFA directly.7Franchise Tax Board. 2025 Instructions for Form 540 California Resident Income Tax Return Calculate the amount by multiplying each item’s purchase price by your address’s combined rate.
If you don’t have receipts for small purchases, the CDTFA’s Use Tax Lookup Table estimates your liability from your California adjusted gross income.8Franchise Tax Board. Use Tax The table only covers personal items with a purchase price under $1,000 each and isn’t available for business purchases. The amounts are modest: an AGI between $40,000 and $49,999 produces about $4, and anyone over $199,999 multiplies AGI by 0.009%.9California Department of Tax and Fee Administration. California Use Tax Table Any single item at $1,000 or more has to go through the Use Tax Worksheet in the Form 540 instructions instead.
Paying the CDTFA Directly
You can also pay anytime through CDTFA online services, selecting “File a Return” and the one-time use tax option. This is the cleaner approach after a large purchase if you’d rather settle it immediately than carry it to tax season.6California Department of Tax and Fee Administration. California Use Tax For Personal Use
Vehicles, Vessels, and Aircraft Follow Different Rules
Cars, boats, and airplanes cannot be reported on your income tax return.6California Department of Tax and Fee Administration. California Use Tax For Personal Use For vehicles, the DMV typically collects use tax when you register the vehicle. If you claim the purchase was exempt or nontaxable, the DMV may require a use tax clearance certificate from the CDTFA before letting you register without paying.10California Department of Tax and Fee Administration. Tax Guide for Purchasers of Vehicles
If the DMV doesn’t collect it, payment is due by the last day of the month following the month of purchase, filed through CDTFA online services under the option for a vehicle, vessel, aircraft, or mobile home.10California Department of Tax and Fee Administration. Tax Guide for Purchasers of Vehicles Miss that date and penalties and interest start. Registering a vehicle outside California specifically to avoid the tax triggers a 50% penalty on the tax due, and the CDTFA watches for the pattern on expensive cars and boats.11California Department of Tax and Fee Administration. Regulation 1703
Exemptions That Can Reduce or Eliminate the Tax
Most food products intended for home consumption are exempt from both sales and use tax,12California Department of Tax and Fee Administration. Revenue and Taxation Code 6359 – Food Products as are prescription medicines dispensed by a pharmacist or furnished by a physician.13California Department of Tax and Fee Administration. Sales And Use Tax Law – Section 6369 If an item wouldn’t be taxed at a California store, you don’t owe use tax on it either.
Travelers get a per-person exemption for the first $800 in tangible personal property purchased abroad from a retailer, as long as the goods were hand-carried into California within a 30-day period. Items shipped or mailed from a foreign country don’t qualify, and anything above $800 is taxable on the excess.8Franchise Tax Board. Use Tax
Qualifying manufacturers and research operations can claim a partial exemption on machinery and equipment used primarily in manufacturing, processing, refining, fabricating, or research and development. The partial exemption rate is 3.9375%, which reduces the effective rate paid on qualifying purchases, and the exemption is authorized through July 1, 2030.14California Department of Tax and Fee Administration. Sellers — Tax Guide for Manufacturing, and Research and Development Equipment Exemption
Penalties and Interest If You Skip It
The CDTFA cross-references DMV records and customs declarations to catch unreported purchases, so the risk of being found isn’t theoretical. The main penalties:
- Late payment: a flat 10% penalty on the unpaid tax.11California Department of Tax and Fee Administration. Regulation 1703
- Late filing: an additional 10% penalty on the tax due for the missing period.11California Department of Tax and Fee Administration. Regulation 1703
- Fraud or intent to evade: a 25% penalty on top of the others.11California Department of Tax and Fee Administration. Regulation 1703
- Out-of-state vehicle, vessel, or aircraft registration to dodge the tax: a 50% penalty.11California Department of Tax and Fee Administration. Regulation 1703
Interest accrues on top. For 2026, the CDTFA charges 10% annual interest on deficiencies, running from the original due date until you pay, with the rate adjusting semiannually based on the IRS rate plus three percentage points.15California Department of Tax and Fee Administration. Interest Rates On a vehicle purchase, those combined charges can add thousands to the bill, so even when the base rate feels small, paying on time is the straightforward move.