Vending Machine Food Sales (Publication 118)
Sales Tax Factors
Calculating the tax you owe
Use the table below to calculate the amount of tax you owe. This table will help you deduct the tax amounts included in your sales and to determine your taxable gross receipts. Factors are shown for 100 percent taxable sales and 33 percent taxable food sales. Please see the Partially taxable food sales section of the Applying and Reporting Tax tab for further details on when to use the 33 percent taxable factors. Be sure to use the correct factor for the tax rate in effect at the vending machine's location. For information about tax rates in specific areas, please select California City and County Sales and Use Tax Rates.
| Tax rate | Factor for tax calculation | |
|---|---|---|
| 100% taxable | 33% taxable | |
| 7.250 | 93.2401 | 32.2289 |
| 7.375 | 93.1315 | 32.2160 |
| 7.500 | 93.0233 | 32.2030 |
| 7.625 | 92.9152 | 32.1900 |
| 7.750 | 92.8074 | 32.1771 |
| 7.875 | 92.6999 | 32.1641 |
| 7.975 | 92.6140 | 32.1538 |
| 8.000 | 92.5926 | 32.1512 |
| 8.125 | 92.4855 | 32.1383 |
| 8.225 | 92.4001 | 32.1280 |
| 8.250 | 92.3788 | 32.1254 |
| 8.350 | 92.2935 | 32.1151 |
| 8.375 | 92.2722 | 32.1125 |
| 8.475 | 92.1871 | 32.1022 |
| 8.500 | 92.1659 | 32.0996 |
| 8.625 | 92.0598 | 32.0868 |
| 8.725 | 91.9752 | 32.0765 |
| 8.750 | 91.9540 | 32.0739 |
| 8.875 | 91.8485 | 32.0610 |
| 8.975 | 91.7642 | 32.0508 |
| 9.000 | 91.7431 | 32.0482 |
| 9.125 | 91.6380 | 32.0353 |
| 9.225 | 91.5541 | 32.0251 |
| 9.250 | 91.5332 | 32.0225 |
| 9.375 | 91.4286 | 32.0097 |
| 9.500 | 91.3242 | 31.9969 |
| 9.625 | 91.2201 | 31.9841 |
| 9.750 | 91.1162 | 31.9713 |
| 9.875 | 91.0125 | 31.9586 |
| 10.000 | 90.9091 | 31.9458 |
| 10.250 | 90.7029 | 31.9203 |
| 10.500 | 90.4977 | 31.8949 |
| 10.750 | 90.2935 | 31.8695 |
To compute the 100% taxable sales tax factor for other tax rates the formula is as follows:
100% taxable factor percentage = 100 divided by [1 + tax rate (decimal form)]
Example: 100% taxable factor at 7.25% = 100 divided by (1 + .0725) = 100 ÷ 1.0725 = 93.2401%
To compute the cold food factor for other tax rates the formula is as follows:
Cold food factor percentage = 100 divided by [3.0303 + tax rate (decimal form)]
Example: Cold food factor at 7.25% = 100 divided by (3.0303 + .0725) = 100 ÷ 3.1028 = 32.2289%
- Please see the Partially taxable food sales section of the Applying and Reporting Tax tab.
Taxable gross receipts worksheet—sample calculation
The table below shows how to properly calculate the taxable gross receipts from vending machine sales and which figures to carry to your sales and use tax return. The example shows $25,000 in total taxable sales: $15,000 in 100 percent taxable sales and $10,000 in 33 percent taxable sales. This example uses a tax rate of 8.25 percent, but you must use the rate in effect where your machines are located. If you have vending machines in locations with different tax rates, you will need to complete separate worksheets for each rate and combine totals to prepare your return.
| A | B | |||
|---|---|---|---|---|
| Example | 100% taxable sales |
33% taxable sales |
Total of A+B round and carry to return line indicated |
|
| 1. | Gross sales including tax | $15,000.00 | $10,000.00 | $25,000 to return-gross sales |
| 2. | Taxable sales percentage factor (see table above) | × 92.3788% | × 32.1254% | |
| 3. | Taxable receipts without tax (gross sales including tax times taxable sales percentage factor) | $13,856.82 ($15,000 × .923788) |
$3,212.54 ($10,000 × .321254) |
|
| 4. | Tax rate (use rate where machines are located) | × 8.25% | × 8.25% | |
| 5. | Tax included in sales (taxable receipts without tax times tax rate) | $1,143.19 ($13,856.82 × .0825) |
$265.03 ($3,212.54 × .0825) |
$1,408.22 to return-sales tax included |
| 6. | Tax exempt food sales (column B only; gross sales including tax minus taxable receipts without tax minus tax included in sales) | n/a | $6,522.43 ($10,000 − $3,212.54 − $265.03) |
$6,522.43 to return-sales of food products |
Revision June 2023