The California Department of Tax and Fee Administration (CDTFA) has issued a Special Notice (L1022) announcing new sales and use tax rates effective April 1, 2026, following voter-approved district tax changes in certain cities and counties throughout California.
What’s Changing
- District tax rate changes apply only within the specific city or county limits identified in the CDTFA notice.
- In addition to new rates, voters in some areas extended existing citywide and countywide district taxes that were otherwise set to expire.
- These changes may impact retailers, service providers, and remote sellers with California sales or delivery locations in affected jurisdictions.
How to Confirm the Correct Rate
Tax rate spreadsheets, including applicable tax codes and expiration dates, are available from CDTFA’s California City & County Sales & Use Tax Rates webpage beginning March 1, 2026.
To confirm the correct rate for a specific business or delivery location, taxpayers can use CDTFA’s “Find a Sales and Use Tax Rate by Address” tool, with updated rates searchable starting April 1, 2026.
Action Steps for Businesses
- Review whether your business operates or delivers goods into affected local jurisdictions.
- Update point-of-sale systems, invoicing, and tax calculation software as needed.
- Confirm compliance prior to the April 1 effective date to avoid under collection or overcollection.
CDTFA encourages taxpayers to sign up for Online Services to receive future notices electronically. Assistance is available through CDTFA’s Customer Service Center at +1 (800) 400-7115.
If you have questions about how these changes may affect your business or need assistance reviewing your sales and use tax compliance, feel free to contact Nick Ricards at [email protected] or (720) 370-1169.
