When Is California Sales Tax Due? Key Filing Deadlines

California sales tax is a consumption tax applied by both state and local governments on the sale of tangible goods and certain services within the state. This tax is initially collected by retailers from purchasers at the point of sale. The funds generated from sales and use taxes contribute significantly to the state’s revenue, supporting various public services such as education, transportation, and public safety initiatives. Retailers act as agents of the state, responsible for collecting these taxes from consumers and remitting them to the California Department of Tax and Fee Administration (CDTFA). The sales tax amount is generally measured by the gross receipts derived from total retail sales.

Determining Your Filing Frequency

The California Department of Tax and Fee Administration (CDTFA) assigns a specific sales tax filing frequency to businesses upon registration. This assigned frequency, which can be monthly, quarterly, or annually, depends on a seller’s average amount of taxable sales or anticipated taxable sales. Businesses with higher sales volumes are typically required to file and remit taxes more frequently. For instance, businesses with average monthly taxable sales of $17,000 or more may be required to make sales tax prepayments (2, 11, 33).

The CDTFA reviews a business’s sales tax liability over a period and will notify the business in writing if their filing frequency changes or if they are required to make prepayments (19). It is important for businesses to keep their contact information updated with the CDTFA to receive such critical communications. Once a business is placed on a prepayment schedule, they typically remain on it until formally notified otherwise (33).

Key Sales Tax Due Dates

Sales tax due dates in California vary based on the assigned filing frequency. For businesses filing on a monthly basis, returns and payments are generally due by the last day of the month following the reporting period. For example, sales tax collected in January would be due by the last day of February (4, 9, 10).

Quarterly filers have specific due dates tied to the end of each calendar quarter. The first quarter (January-March) is due April 30th, the second quarter (April-June) is due July 31st, the third quarter (July-September) is due October 31st, and the fourth quarter (October-December) is due January 31st of the following year (17). Annual filers, typically those with lower taxable sales, have a single due date: January 31st for the prior calendar year for sales tax accounts, or April 15th for qualified purchasers and consumer use tax accounts (9). If any due date falls on a weekend or a state holiday, the deadline is automatically extended to the next business day (10).

Preparing for Sales Tax Filing

Businesses must maintain detailed financial records that document all sales transactions. These records should include gross receipts from all sales, clearly distinguishing between sales subject to tax, sales for resale, and exempt sales. Proper categorization of transactions supports accurate calculation of tax liability.

Businesses can reduce their taxable sales by accounting for common deductions and exemptions. Examples include sales made for resale, sales to out-of-state customers where the product is shipped directly out of California, and sales of certain exempt items like most unprepared foods or prescription medicines (22). Maintaining documentation for these deductions, such as resale certificates from purchasers or shipping records, is important. The primary form used for filing sales and use tax is the CDTFA-401-EZ.

This form requires specific information to be entered, including total sales, reported deductions, and the resulting net taxable sales. The tax collected or due is then calculated based on the applicable sales tax rate for the business’s location. Accurate record-keeping directly impacts the ability to correctly complete this form and ensure compliance with state tax regulations.

Submitting Your Sales Tax Return and Payment

Once the sales tax return is prepared, businesses have several methods for submission and payment to the California Department of Tax and Fee Administration (CDTFA). The most common and encouraged method is online filing through the CDTFA website, where businesses can log into their account, select the appropriate filing period, and submit their return electronically (5, 21, 36).

For payment, Electronic Funds Transfer (EFT) directly from a bank account is a preferred method, and some taxpayers are mandated to use EFT based on their sales volume (28). Credit card payments are also accepted, though a service fee, typically around 2.3% of the transaction amount, is charged by a third-party processor (27). Businesses can also pay by check or money order, which should be made payable to the California Department of Tax and Fee Administration, with the CDTFA account number written on the payment (5). Mailed payments should be postmarked by the due date to be considered timely (28).

Understanding Penalties and Interest

Failing to meet sales tax due dates or filing requirements can result in various penalties and interest charges. A common consequence is a 10% penalty applied to the amount of tax due for late filing or late payment (3, 4, 7, 14, 15). If a business is required to make prepayments and fails to do so timely, a 6% penalty may apply to the underpaid amount, which can increase to 10% if the failure is due to negligence (11).

Interest is also assessed on underpayments or late payments, accruing from the original due date until the tax is paid (12). More severe penalties can be imposed for negligence or fraud, such as a 10% penalty for negligence or intentional disregard of the law, and a 25% penalty for fraud or intent to evade tax (16). The CDTFA possesses broad authority to assess and collect unpaid tax, penalties, and interest, which can include liens, levies, and other collection actions to recover outstanding liabilities (3).