Tax Guide for California Tire Fee
Getting Started
General Fee Application
The California Tire Fee applies to the retail purchase of new tires intended for use with, but sold separately from, on-road or off-road motor vehicles, trailers, motorized equipment, construction equipment, or farm equipment. The fee also applies to new tires (including the spare) sold with the retail purchase of new or used motor vehicles, trailers, construction equipment, or farm equipment.
See Industry Topics section for a more detailed list of tires that are subject to the tire fee.
Registration
You must register online for a California Tire Fee account. Register online with us by selecting Register a New Business Activity.
Who is required to register?
You must register with the California Department of Tax and Fee Administration (CDTFA), collect the tire fee, file a return, and pay the fee to CDTFA if you are any of the following:
- A California retailer that sells new tires, including new tires on new or used motor vehicles, farm equipment, construction equipment, or trailers drawn upon a highway or road; or
- Beginning January 1, 2022, a retailer including a marketplace facilitator who sells new tires through a marketplace. Please see our Tax Guide for Marketplace Facilitator Act for more information.
- California retailer (lessor) that leases/rents new or used motor vehicles, farm equipment, or construction equipment that include new tires; or
- Purchaser (consumer) who purchases new tires for personal or business use, but does not pay the tire fee at the time of purchase, including a:
- Purchaser (consumer) that purchases a new tire from an out-of-state seller that does not charge the tire fee.
- Retailer who becomes a purchaser (consumer) by removing new tires from inventory for purposes other than retail sale or resale or by renting, for periods of four months or less (for example, short-term car rental companies), for use with motor vehicles, trailers, farm equipment, or construction equipment on which new tires were mounted (including the spare).
California Tire Fee Tax Rates
| Effective Date | Rate Per New Tire |
|---|---|
| January 1, 2005 – Present | $1.75 |
Visit our Tax Rates – Special Taxes and Fees page to view current and historical California Tire Fees.
Return and Payment
You may both file your CDTFA-501-TF, California Tire Fee Return, and pay the fee online. The tire fee return and payment are due on or before the 15th day of the month following each reporting period. For example, if your reporting period is for the first quarter (January thru March), the return and fee payment is due on April 15th. The CDTFA-501-TF is due either on a quarterly or yearly filing basis. We assign your filing frequency at the time you register.
You are required to file a return even if you did not have any reportable activity during the reporting period.
If you file a late return or late payment we may assess a penalty and/or interest. See the Penalty and Interest topic in this section.
Payment
You may file and pay your tire fees online. Visit our website to make a payment and learn about our various payment options.
If your average monthly fee payment is $20,000 or more, you are required to pay by Electronic Funds Transfer (EFT). CDTFA will notify you in writing if you are required to pay your fees electronically.
Payments must be submitted by the due date to be considered timely. For an EFT payment to be timely, it must be initiated on or before the filing due date and funds must settle into CDTFA's bank account on or before the banking day following the due date. Some EFT payments made on the return's due date may need to be initiated before 3:00 p.m. (Pacific time) to be received timely. For more information regarding EFT payments, please see EFT FAQs.
Penalty and Interest
The penalty for filing a late return and/or late fee payment is ten percent of the fee amount due for the period. Interest also applies to late fee payments.
You may log into your account to submit an online request for an extension to file a return or relief from penalty (including interest due to a disaster).
Notice of Business Change
Login with your username and password to update your account information such as changes to your business ownership, email address, mailing address, location address, and phone or fax number. It is important to notify us so we can update our records to ensure you receive information and email reminders to electronically file timely. If you are unable to login to access your account you may use form CDTFA-345-SP, Notice of Business Change Special Taxes and Fees Accounts, and mail it to the address provided on the form.