California Use Tax Basics (Publication 110)
Paying Use Tax

Generally, when you buy an item that is used, stored, consumed, or given away in California, you owe use tax. In some cases, sellers must collect use tax from their customers and pay it to us, the California Department of Tax and Fee Administration (CDTFA).

• California seller's permit
  If you hold a seller’s permit, you must pay use tax when submitting your sales and use tax return. Report the amount of your purchase under "Purchases subject to use tax" on the return for the period that includes the date when you first used, stored, or consumed the item in California. When you obtain your seller’s permit, you will be instructed to file your tax return on a monthly, quarterly, or annual reporting basis. Your tax return and payment are due after the close of each reporting period. For example, if you are on a fiscal year reporting basis, your reporting period closes on June 30, your tax return and payment are due on July 31, the last day of the following month.
• Required registration to report use tax
  

  A "qualified purchaser" must register with us and annually report and pay use tax directly to us, as required by Revenue and Taxation Code (R&TC) section 6225. If you are not required to hold a seller's permit and are not currently registered with us for use tax purposes, you may be required to register as a "qualified purchaser."

  Prior to January 1, 2024, a "qualified purchaser" was defined as a person that received at least $100,000 in gross receipts from their business operations per calendar year and was not otherwise required to be registered with us. Gross receipts are the total of all receipts from both in-state and out-of-state business operations.

  Beginning January 1, 2024, the definition of a "qualified purchaser" was revised* to eliminate the requirement that the person receives at least $100,000 in gross receipts per calendar year from business operations. It instead requires that the person makes more than $10,000 in purchases subject to use tax (excluding vehicles, vessels, or aircraft) per calendar year if the use tax imposed on those purchases has not otherwise been paid to a retailer engaged in business in this state or authorized to collect the tax. This change is effective from January 1, 2024, through December 31, 2028.

  On January 1, 2029, that definition of a "qualified purchaser" will revert to the person receiving at least $100,000 in gross receipts per calendar year from business operations.

  You can register on our website at www.cdtfa.ca.gov by selecting Register Online under Register for a Permit and then select Register a New Business Activity. Once you have registered, you may pay any use tax due after filing your return. You can also register in person at any of our offices to report use tax.

  For additional information, see publication 126, Mandatory Use Tax Registration for Service Enterprises.

  *See Assembly Bill 1097 (Stats. 2023, ch. 355).

• California income tax return
  If you do not hold a permit with us for paying your use tax as described above, you may report and pay use tax to the Franchise Tax Board (FTB) on your California income tax return. A Use Tax Table is included with the instructions for the FTB income tax return; it is a tool to assist you in reporting use tax when filing your annual income tax return. The Use Tax Table is only used for personal purchases less than $1,000, not for business purchases. Business purchases subject to use tax should be reported using actual business purchase receipts. The due date for use tax is the same as the due date for your state income tax return. The date the use tax liability was incurred must be within the tax year being reported on your state income tax return. The FTB will forward the use tax collected to us. If you are a "qualified purchaser" you are required to register with us to report and pay use tax.
• Consumer use tax account
  If you make frequent taxable purchases from out-of-state sellers and are not required to register for a use tax account as a qualified purchaser, you may register with us and obtain a consumer use tax account. You can register on our website at www.cdtfa.ca.gov by selecting Register, and then select Register or Apply for a New Business Activity or Location. Once you have registered, you may pay any use tax due by filing your return. You can also register in person at any of our offices. Please contact our Customer Service Center at 1-800-400-7115 (TTY:711) for assistance. You will be provided an account number and the ability to electronically file your return. You will be notified whether you must file your consumer use tax return on a quarterly or quarterly prepay basis. Your tax return and payment are due after the close of each reporting period. For example, if you are on a quarterly reporting basis, the reporting period for the first quarter closes on March 31, your tax return and payment are due on April 30, the last day of the following month.
• Vehicles, vessels, and aircraft
  Special rules and reporting requirements apply to these purchases. Please see the following:
  
  • Regulation 1610, Vehicles, Vessels and Aircraft
  • Publication 52, Vehicles and Vessels: Use Tax
  • Publication 79, Documented Vessels and California Tax
  • Publication 79A, Aircraft and California Tax

  You may also call our Customer Service Center at 1-800-400-7115 (TTY:711).

• Registration
  If you do not have a seller's permit and are not required to register for a use tax account as a “qualified purchaser,” you can report your purchase(s) subject to use tax by selecting Register, and then select File and Pay Your One Time Use Tax, you may pay any use tax by filing your return. You can also register to report use tax in person at any of our offices. Please contact our Customer Service Center for assistance at 1-800-400-7115 (TTY:711). Use tax is due on purchases made prior to 2012 by January 31, of the following calendar year. Use tax is due on your purchase(s) made after January 1, 2012, by April 15 of the following calendar year in which you first purchased and used the property in California. Penalty and interest apply to payments received after the due date.

What can I do if I owe use tax for prior years?

The In-State Voluntary Disclosure Program may benefit purchasers who are not required to have a seller's permit, but have use tax amounts due. If you owe use tax for periods prior to the current reporting year, you should review this program. Information is available by searching "in-state voluntary disclosure."

What tax rate applies?

Please see California City and County Sales and Use Tax Rates, and publication 44, District Taxes (Sales and Use Taxes). Special use tax rules for railcars, heavy trucks, and similar equipment are also found in publication 44.