The California gun tax is an 11% state excise tax on retail sales of firearms, ammunition, and firearm precursor parts, in effect since July 1, 2024 under Assembly Bill 28.1California Legislative Information. AB-28 Firearms and Ammunition: Excise Tax It sits on top of the existing federal excise tax on the same products and on top of ordinary state and local sales tax, so a buyer at a California counter is paying three layers at once.
What the 11% Applies To
The tax hits gross receipts from retail sales in three categories: firearms, ammunition, and firearm precursor parts.1California Legislative Information. AB-28 Firearms and Ammunition: Excise Tax Gross receipts means the full amount the seller collects on the transaction, including related charges.
“Firearm precursor part” has a narrow legal meaning. Under California Penal Code 16531, it covers a forging, casting, printing, extrusion, or machined body that has reached a stage in manufacture where it can readily be completed or converted into a functioning frame or receiver, or that is sold to the public for that purpose.2California Legislative Information. California Penal Code 16531 Parts that only fit antique firearms are excluded. In practical terms, unfinished frames and receivers (often called “80% lowers”) are covered. Finished accessories like sights, grips, or slings are not.
Who Is Exempt
Two exemptions exist, and neither applies to a typical buyer walking into a gun store.
Sales to active or retired peace officers are exempt, as are sales to the law enforcement agencies that employ them. Separately, any licensed dealer, manufacturer, or ammunition vendor whose gross receipts from covered products fall below $5,000 in a given quarter owes no excise tax for that quarter.3California Department of Tax and Fee Administration. Revenue and Taxation Code 36021 – Exemptions Ordinary state and local sales tax still applies to those sales; only the 11% excise is waived.4California Department of Tax and Fee Administration. California Firearm and Ammunition Excise Tax (CFET) Return
What a Buyer Actually Pays
The legal obligation to calculate and remit the excise tax falls on the seller, specifically licensed firearms dealers, ammunition vendors, and firearms manufacturers making retail sales in California.5California Department of Tax and Fee Administration. Tax Guide for Sellers of Firearm and Ammunition Products In practice, buyers absorb the cost, either through higher shelf prices or a line item at checkout. The IRS has noted that excise taxes are generally built into product costs and may not appear separately on a receipt.6Internal Revenue Service. Basic Things All Businesses Should Know About Excise Tax
The federal excise tax has been in place since 1937 under the Pittman-Robertson Act. It is 10% on pistols and revolvers and 11% on other firearms, shells, and cartridges, collected at the manufacturer or importer level.7Office of the Law Revision Counsel. 26 USC 4181 – Imposition of Tax California’s tax is collected at retail, and ordinary state and local sales tax averages roughly 8.68%.
On a $600 rifle, the math looks like this: about $66 of federal excise is already baked into the retail price, California’s 11% adds another $66, and sales tax adds around $52. The out-of-pocket total lands near $720 or more, depending on the county rate. On pistols the federal rate is 10% rather than 11%, but the California rate stays at 11%.
Where the Money Goes
Revenue flows into the Gun Violence Prevention and School Safety Fund in the State Treasury. Up to $75 million per year is directed to the California Violence Intervention and Prevention (CalVIP) grant program, and in February 2026 Governor Newsom announced $107 million in grants to violence prevention programs statewide.8Office of Governor Gavin Newsom. Governor Newsom Awards $107 Million to Prevent Gun Violence and Improve Community Safety Across State In its first three quarters, the tax generated roughly $44 million in reported revenue.9Legislative Analyst’s Office. Firearms and Ammunition Revenue Update (2025 Q1)
What Sellers Have to Do
Every licensed firearms dealer, ammunition vendor, and firearms manufacturer making retail sales in California must register with the California Department of Tax and Fee Administration for a California Firearm and Ammunition Excise Tax (CFET) Certificate of Registration.5California Department of Tax and Fee Administration. Tax Guide for Sellers of Firearm and Ammunition Products This is separate from any existing sales tax permit. The California Attorney General’s office has confirmed the requirement extends to federally licensed manufacturers making retail sales, including sales of precursor parts.10State of California – Department of Justice – Office of the Attorney General. Assembly Bill 28 (AB 28)
Returns are filed electronically each quarter, due by the last day of the month after each quarter closes: April 30, July 31, October 31, and January 31.4California Department of Tax and Fee Administration. California Firearm and Ammunition Excise Tax (CFET) Return A return is required every quarter, even when there were no taxable sales or the seller qualified for the $5,000 small-volume exemption.
Late filing and late payment each trigger a 10% penalty, capped at a combined 10% for the same period rather than stacked. Interest runs from the day after the due date at the IRS underpayment rate plus three points.11California Department of Tax and Fee Administration. Interest, Penalties, and Collection Cost Recovery Fee
The Pending Legal Challenge
AB 28 is being challenged in court. Jaymes v. Maduros, filed in San Diego Superior Court by individual plaintiffs and firearms organizations including the NRA and the California Rifle and Pistol Association, argues that an 11% tax on constitutionally protected items violates the Second Amendment and seeks an injunction against enforcement. As of early 2026, no ruling on constitutionality has been issued. The tax continues to be collected, and sellers remain obligated to register, file, and pay while the litigation is pending.