Resources For California Use Tax

Annual Reported Use Tax Revenue

Annual Reported Use Tax Revenue
Source Registered with
CDTFA		 Period
Fiscal Year Ending (FYE)		 Use Tax Reported
(in millions)
Use Tax Reported by Registered California Consumers Yes FYE 06/30/2017 $177
Use Tax Reported by Registered Out-of-State Retailers Yes FYE 06/30/2017 $2,912
Use Tax Reported by Seller’s Permit Holders Yes FYE 06/30/2017 $1,401
Use Tax Assessed in Audits Yes FYE 06/30/2017 $129
Use Tax Reported on One-Time, Individual Use Tax Returns No FYE 06/30/2017 $16
Use Tax Reported on California Income Tax Returns No FYE 06/30/2017 $24
Use Tax Reported on Out-of-State Purchases of Vehicles, Vessels, and Aircraft No FYE 06/30/2017 $28
Use Tax Reported on Foreign Purchases No FYE 06/30/2017 $8
Use Tax Collected by DMV on Private Party Transactions No FYE 06/30/2017 $606
Use Tax Reported for Mobile Homes No FYE 06/30/2017 $2.8
Total Combined FYE 06/30/2017 $5,303.8

Updated 11/2017


Registration and Reporting Requirements & Instructions

Individual or Unregistered Service Business

Registration and Reporting Requirements

Even if you are an individual or unregistered service business, and are not required to be registered for any of the reasons below, you are still required to report use tax on all purchases made from out-of-state retailers in which California tax was not collected.

How to Report and Pay Use Tax

If you are not required to hold a seller's permit or use tax account (see below), the easiest way to pay use tax is to report it on your California Income Tax Return found at www.ftb.ca.gov. Follow the instructions included with your income tax return. Complete the worksheet included in those instructions to determine the amount of your use tax liability. However, you may choose to report and pay use tax directly to the California Department of Tax and Fee Administration (CDTFA). Simply use our online registration to report and pay the tax due.

Seller's Permit Holder

Registration and Reporting Requirements

If you hold a California seller's permit, you must pay the use tax due on purchases you make from out-of-state retailers that were not otherwise taxed and taxable merchandise you withdraw from resale inventory for personal or business use.

How to Report and Pay Use Tax

You must report use tax under "Purchases Subject to Use Tax" (Line 2) of your sales and use tax return.

Business That Makes Purchases Subject to Use Tax

Registration and Reporting Requirements

Generally, you are considered a "qualified purchaser" and will be required to register with us and report and pay use tax due when the tax was not paid to a retailer required to collect the tax or to a retailer you reasonably believed was required to collect the tax, if you are a business not required to hold a California seller's permit and:

  • Prior to January 1, 2024, receive at least $100,000 in gross receipts from business operations per calendar year;
  • From January 1, 2024, to December 31, 2028, make 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 authorized to collect the tax; or
  • Beginning January 1, 2029, receive at least $100,000 in gross receipts from business operations per calendar year.

Please see the FAQs for the Qualified Purchaser Program to determine if you are required to register. For more information, please see:

How to Report and Pay Use Tax

You must pay your use tax due by filing your annual use tax return for the previous calendar year by April 15. If the due date falls on a weekend or state holiday, then the due date is extended to the following business day.

Frequent Purchaser of Out-of-State Goods

Registration and Reporting Requirements

If you are a person or business that regularly incurs use tax liabilities, but are not required to hold a seller's permit and are not required to register for a use tax account as a qualified purchaser (see above), you should arrange to receive consumer use tax returns by applying for a consumer use tax account online using our online registration.

How to Report and Pay Use Tax

If you hold a consumer use tax account, you must report use tax on your use tax return. File online or use CDTFA 401-E, State, Local, And District Consumer Use Tax Return.

Purchaser of a Vehicle, Vessel, Aircraft, or Mobile-home

Registration and Reporting Requirements

If you purchase from a seller who does not hold a California seller's permit and did not pay tax on the purchase of a vehicle, vessel, aircraft, or mobile-home, you may be required to report use tax directly to the CDTFA. Please see our Tax Guide for Purchasers of Vehicles, Vessels, & Aircraft for more information on reporting use tax on a vehicle, vessel, or aircraft. Please see Regulation 1610.2, Mobile-homes and Commercial Coaches for more information on reporting use tax on mobile-homes.

How to Report and Pay Use Tax

Generally, use tax on private purchases of vehicles and undocumented vessels is paid to the Department of Motor Vehicles (DMV) at the time of registration.

You can register online to report and pay use tax on a vehicle, a vessel registered with DMV, a documented vessel registered with the U.S. Coast Guard, an aircraft, or a mobile-home.

Please have the following information available at the time of registration:

  • Name and address of both the purchaser and seller
  • Identification number of the property purchased such as the tail number, documentation number or serial number
  • Make, model and year of property
  • Date of Purchase
  • Total Purchase Price
  • Location where property will be used, stored or registered

For additional information about how to report and pay use tax, please see publication 79, Documented Vessels and California Tax, publication 79A, Aircraft and California Tax, or follow the instructions in Regulation 1610.2, Mobile-homes and Commercial Coaches.

Purchases of vehicles, vessels, aircraft, and mobile-homes are not to be reported on your California state income tax return. For additional information, please see our Tax Guide for Purchasers of Vehicles, Vessels, & Aircraft.

Purchaser of Cigarette and Tobacco Products

Registration and Reporting Requirements and How to Report and Pay Use Tax

If you purchase untaxed cigarette and/or tobacco products from an out-of-state retailer, you are required to log in at www.cdtfa.ca.gov to file a return to report your purchases and pay the unpaid excise and use taxes to us. You may not report and pay these taxes on your Sales and Use Tax return or on your California state income tax return.

For more information, please see our:

Purchaser of Foreign Goods

Registration and Reporting Requirements

The first $800 of tangible personal property that is purchased from a retailer in a foreign country by an individual and personally hand-carried into this state from the foreign country within any 30-day period is exempt from use tax. This exemption does not apply to property sent or shipped to this state. You are required to report use tax due on any purchases of foreign goods not meeting this exemption. Please see Foreign Purchases for additional information on reporting requirements for foreign purchases.

How to Report and Pay Use Tax

If you purchase foreign goods that do not qualify for any exclusion, you should report and pay use tax using the method based on your purchaser type as described above (individual, seller's permit holder, etc.) Please see Foreign Purchases for additional information on reporting requirements for foreign purchases.

Storage and Use Exclusion

Use Tax Table

Forms:

Publications:

Regulations: