Do You Owe Use Tax?
You may owe use tax on purchases you made from out-of-state or Internet sellers. Use tax is similar to the sales tax paid on purchases you make in California. You may report use tax on your income tax return instead of filing a use tax return with the California Department of Tax and Fee Administration. To report use tax on your income tax return, you may use either the Use Tax Worksheet or the Use Tax Lookup Table. Both are included in the tax booklet instructions.
You must pay California use tax when you purchase out-of-state items by telephone, Internet, mail, or in person and both of the following apply:
- The seller does not collect California sales or use tax.
- You use, give away, store, or consume the item in this state.
Use Tax Worksheet
When you choose to use the following Use Tax Worksheet method to determine the amount of use tax you owe:
- Add the amount of all purchases made from out-of-state or Internet sellers made without payment of California Sales/Use tax. Include only items on which you would have paid sales tax if you had purchased them in California. See the California Department of Tax and Fee Administration website for more information on taxable items.
- Look up the use tax rate for the location where you used, gave away, stored, or consumed the items you purchased.
- Multiply the amount by the use tax rate.
- If the Use Tax Lookup Table is used to estimate individual purchases less than $1,000, add the amount from the table.
- Subtract any sales or use tax you paid to another state for the items you purchased.
- Enter this amount.
If you have a combination of individual items purchased for $1,000 or more and/or items purchased for use in a trade or business not registered with the California Department of Tax and Fee Administration, and individual, non-business items purchased for less than $1,000, you may either:
- Use the Use Tax Worksheet to compute use tax due on all purchases, or
- Use the Use Tax Worksheet to compute use tax due on all individual items purchased for $1,000 or more plus items purchased for use in a trade or business not registered with the California Department of Tax and Fee Administration, and use the Estimated Use Tax Lookup Table to estimate the use tax due on individual, non-business items purchased for less than $1,000, then add the amounts.
Instead of reporting your use tax liability using the Use Tax Worksheet you can use the Use Tax Lookup Table. The table allows individuals who are not required to hold a California Seller’s Permit or a Consumer Use Tax account, to report their use tax due based on their California Adjusted Gross Income (AGI). The table can only be used for individual purchases less than $1,000. Individual purchases of $1,000 or more must be calculated separately using the use tax worksheet.
Items to Report Directly to the California Department of Tax and Fee Administration
Report use tax due on the following items directly to the California Department of Tax and Fee Administration. Do not report it on your income tax return.
- Vehicles, vessels, and trailers that must be registered with the Department of Motor Vehicles.
- Mobile homes or commercial coaches that must be registered annually as required by the Health and Safety Code.
- Vessels documented with the U.S. Coast Guard.
- Leases of machinery, equipment, vehicles, and other tangible personal property.
If you owe use tax for prior years
The California Department of Tax and Fee Administration has established a voluntary use tax liability disclosure program for in-state qualified purchasers who wish to acknowledge their liability for California use tax. By voluntarily coming forward to the California Department of Tax and Fee Administration under this program, you may be able to limit your liability for tax, penalties, and interest due for prior periods. Get more information.
Note: If you traveled to a foreign country and brought items back to California, generally the use tax is due on the purchase price of the goods you listed on your U.S. Customs Declaration less the $800 per-person exemption. This $800 exemption does not apply to goods sent or shipped to California by mail or other common carrier.
If your filing status is "Married/RDP Filing Separately", you may elect to report one-half of the use tax due or the entire amount on your income tax return. If you elect to report one-half, your spouse may report the remaining half on his or her income tax return or on the individual use tax return available from the State California Department of Tax and Fee Administration.
For more information about use tax, please visit the California Department of Tax and Fee Administration website, or call their Information Center at 800.400.7115 or TTY/TDD 711.
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