California State Tax Archives

How the California Sales Tax Rate Is Determined (2026)

July 12, 2026March 18, 2022 by Brotman Law

The California sales tax rate you pay is the 7.25% statewide base (6.00% state + 1.25% mandatory local) plus whatever district taxes voters have approved where the sale is delivered — which is why the real rate runs from 7.25% to roughly 10.75% depending on the address. District rates change every quarter somewhere in the state; the latest round took effect April 1, 2026 (CDTFA Special Notice L-1022), including Santa Clara County’s jump to 9.750%. Always confirm a specific address with the CDTFA rate lookup.

And when a rate question has turned into an audit or an assessment, our California sales tax attorney page explains how those disputes get defended.

By Sam Brotman, JD, LLM, MBA · Last updated July 2026

If a rate dispute has already turned into an audit or assessment, the question becomes representation — here is when hiring a California sales tax attorney actually pays for itself.

You may be wondering how sales tax rates are set and why they seem to vary across the state. Here is a brief review of the sales and use tax and then we will break down how California sets its sales tax rate and the various elements that impact the rate.

Franchise Tax Board Business Collections

July 5, 2026November 26, 2021 by Brotman Law

Voluntary Case Resolution Procedure

Key Takeaways

The FTB has established special procedures for business tax collections, issuing notices to business entities with tax issues. These notices provide business entities repeated opportunities to voluntarily meet their tax obligations.
FTB notices educate business entities of their legal rights and responsibilities, and provides them with FTB contact information. Notices are used as a method to gain compliance, minimize enforcement costs, and ensure due process.
The FTB must notify business entities in writing about outstanding tax issues, and allow reasonable time for the business entity to comply.

CDTFA Sales Tax Audits

May 25, 2026November 24, 2021 by Brotman Law

Key Takeaways

The California Department of Tax and Fee Administration auditor will always make sure to distinguish between sales and use tax.
In the case of a use tax, purchaser is liable until he or she paid the tax to the state or to a vendor who is authorized or required to collect the use tax and who must issue a receipt to the purchaser.
Invoices for a representative period, depending on the volume, will be examined and compared with the purchase record to determine that all invoices are on hand.

The California Department of Tax and Fee Administration auditor will always make sure to distinguish between sales and use tax. Generally, the sales tax is the liability of the seller, whereas the use tax is the liability of the purchaser.

A retailer who consumes merchandise purchased for resale under a valid resale certificate or any person who consumes merchandise purchased from a retailer, the sale of which is exempt from sales tax (in contrast to CDTFA sales tax audits), is liable for the use tax on the cost of the property purchased.

In the case of a use tax, purchaser is liable until he or she paid the tax to the state or to a vendor who is authorized or required to collect the use tax and who must issue a receipt to the purchaser.

If the purchaser certifies in writing to a seller that the property purchased will be used in a manner as to entitle the seller to treat gross receipt form the sale as exempt from the sales tax, but purchaser actually uses the property in some other manner and for some other purpose, then the purchaser will be liable for sales tax as if purchaser was the seller in the original transaction.

Employment Development Department Installment Agreement – Part Two

July 5, 2026November 12, 2021 by Brotman Law

If an entity which enters into long-term agreement is a corporation, LLC or an LLP, and the remaining balance is more than $10,000 of overall assessable tax liability amount, a form DE 204 must be filed. DE 204 establishes liability of corporate responsible persons in regards to assessed tax liability of the corporation.

Key Takeaways

If an entity which enters into long-term agreement is a corporation, LLC or an LLP, and the remaining balance is more than $10,000 of overall assessable tax liability amount, a form DE 204 must be filed.
In any case, EDD will also require written explanation of how the liability was created.
EDD may require additional supporting documentation regarding financial statement entries. Long-term agreement must be approved by EDD’s lead senior tax compliance representative or tax compliance supervisor.

In any case, EDD will also require written explanation of how the liability was created. EDD also will require financial statements, personal or business, with documentation regarding financial status such as loan denials, tax returns, bank statements, accountant’s financial reports, etc.

EDD may require additional supporting documentation regarding financial statement entries. Long-term agreement must be approved by EDD’s lead senior tax compliance representative or tax compliance supervisor.

Employment Development Department Installment Agreement – Part One

July 5, 2026November 10, 2021 by Brotman Law

Under California law, taxpayers have a legal obligation to report and pay contributions and withholdings when due. If a taxpayer becomes delinquent in the payment of amounts due, the Employment Development Department (EDD) will take appropriate action to collect the full amount immediately.

Key Takeaways

Under California law, taxpayers have a legal obligation to report and pay contributions and withholdings when due.
The EDD recognizes that sometimes it is in the best interest of the state and in the interest of a California taxpayer that EDD allows an installment agreement to liquidate over a period of time an amount owed by taxpayer.
A taxpayer can request installment agreement by phone, by letter or by completing and filing an Installment Agreement Request (DE 927B).

The EDD recognizes that sometimes it is in the best interest of the state and in the interest of a California taxpayer that EDD allows an installment agreement to liquidate over a period of time an amount owed by taxpayer.

Employee Payroll Taxes: How the EDD Handles Misclassified Workers

May 25, 2026November 5, 2021 by Brotman Law

Managing employee payroll taxes can get quite complicated, with a number of areas being particularly opaque. One of those is the question of employee classification; is a person properly classified as a worker or an independent contractor?

Misclassifying workers as independent contractors carries with it some significant consequences, including penalties and even potential fraud prosecution, so it is a topic worth exploring in some detail.

Why Do I Owe State Taxes This Year? (& Why so Much?) 2022 Guide

July 12, 2026October 22, 2021 by Brotman Law

If the FTB has been in touch — or the amount you owe doesn’t look right:

Most FTB notices come with a 30-day response window. A free 15-minute call covers whether what you owe is correct, what options exist before the deadline, and whether your situation warrants representation.

Get Sam’s Take — Free 15-Minute Call → Or call: (619) 378-3138

If you haven’t had to pay any state taxes for the past few years but now face a liability, you might be wondering, why do I owe state taxes this year? It’s a pretty common question that many taxpayers struggle to find the answer to.

You may not even be aware that you owe state taxes this year. It all depends on how your income has changed over the previous year and whether you still have any credits or deductions available to you that were used previously to reduce your taxes.

California Payroll Tax: SUI, ETT, SDI & PIT Employer Guide

July 12, 2026August 13, 2021 by Brotman Law

The California payroll tax structure for an employer in this state is based on four distinct taxes, commonly referred to as the CA SUI, ETT, SDI, and PIT payroll taxes. There are different rates for each of these taxes and the calculation methods are different as well.

Do You Owe Sales Taxes? CDTFA Collections Can Track You Down

July 5, 2026June 11, 2021 by Brotman Law

Key Takeaways

If it is determined that your business owes unpaid sales or use taxes, the CDTFA may take steps to claim that money.
If you receive a notice from the CDTFA about a sales and use tax liability, you may benefit from the help of an experienced tax attorney to help you navigate the issue.
Unpaid taxes may attract large fines and penalties on top of the original liability, and any delay or confusion can quickly compound a bad situation into something much worse.

California Payroll Tax Appeals – Part Two

May 25, 2026June 7, 2021 by Brotman Law

During an appeal, the taxpayer should prepare and file a pre-trial brief or memorandum of points and authorities, in which he or she describes the relevant law and its application to his or her case in support of of it.

Key Takeaways

During an appeal, the taxpayer should prepare and file a pre-trial brief or memorandum of points and authorities, in which he or she describes the relevant law and its application to his or her case in support of of it.
The taxpayer may want to locate and interview helpful witnesses, including workers previously interviewed by EDD, principals of the business and its management employees.
It is worthwhile noting that an Administrative Law Judge may order the taking of interrogatories (a set of written questions to opposing party, answers to which may later be used as evidence).

The taxpayer may want to locate and interview helpful witnesses, including workers previously interviewed by EDD, principals of the business and its management employees.