California sales tax codes and rates
California's state sales tax rate is 7.25%; county and city rates come on top and are not included. A Nefin company that sells into California gets 5 sales codes, each named after the line of the CDTFA-401 it fills, so the return's figures add up as you invoice. Purchases you owe use tax on go under CA-2, and Nefin works out the use tax due.
California codes from the CDTFA-401
Each code is “CA-” plus the line it fills on the CDTFA-401. Rates are the state rate only; add local rates in Settings, VAT rates, where you collect them.
| Code | What it covers | Rate |
|---|---|---|
| CA-12 | CA taxable sales 7.25% statewide (CDTFA-401 Line 12) | 7.25% |
| CA-4 | CA sales for resale (CDTFA-401 Line 4) | 0% |
| CA-7 | CA sales to US government (CDTFA-401 Line 7) | 0% |
| CA-8 | CA interstate/foreign sales (CDTFA-401 Line 8) | 0% |
| CA-10 | CA other exempt sales (CDTFA-401 Line 10) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| CA-2 | CA purchases subject to use tax (CDTFA-401 Line 2) | 0% |
California in the tax books
Nefin’s sales tax book has one row per invoice and one column per CDTFA-401 line; these are the California columns and the totals worked out from them.
Sales Tax Book
California - CDTFA-401
- [CA-12]Transactions subject to tax (Line 12)
- [CA-4]Sales to other retailers for resale (Line 4)
- [CA-7]Sales to the United States government (Line 7)
- [CA-8]Sales in interstate or foreign commerce (Line 8)
- [CA-10]Other deductions (Line 10)
Totals Nefin calculates
- [CA-1] Total sales (Line 1)Sum of the net amounts in [CA-12] + [CA-4] + [CA-7] + [CA-8] + [CA-10]
- [CA-13] State tax 6% (Line 13)Net amount × 6%, from [CA-12]
- [CA-14] County tax 0.25% (Line 14)Net amount × 0.25%, from [CA-12]
- [CA-15] Local tax 1% (Line 15)Net amount × 1%, from [CA-12]
- [CA-13-15] Statewide tax 7.25% (Lines 13-15, district tax excluded)Total of [CA-13] + [CA-14] + [CA-15]
Use Tax Book
California - CDTFA-401
- [CA-2]Purchases subject to use tax (Line 2)
Totals Nefin calculates
- [CA-13-15] Use tax 7.25% on Line 2 (taxed via Lines 3, 12-15)Net amount × 7.25%, from [CA-2]
Frequently asked questions
What is the California sales tax rate?
The state rate is 7.25%. Counties, cities and districts may add local rates, which vary by address and are not part of these codes.
Which California sales tax codes does Nefin set up?
5 sales codes from the CDTFA-401, for example CA-12 (CA taxable sales 7.25% statewide (CDTFA-401 Line 12)), CA-4 (CA sales for resale (CDTFA-401 Line 4)), CA-7 (CA sales to US government (CDTFA-401 Line 7)).
How does Nefin handle California use tax?
Book a purchase on which the vendor charged no California tax under CA-2 (CA purchases subject to use tax (CDTFA-401 Line 2)). The bill stays at the price you paid, and the use tax book works out the tax you owe at 7.25%.
Are these California codes official?
They are a starting point. Each code follows a line of the CDTFA-401, but check them against your return before you file, and edit them in Settings, VAT rates.