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California Sales and Use Tax Rates Change on April 1, 2025: What Your Business Needs to Know

If your business sells goods or services in California, it’s time to review your tax settings. As of April 1, 2025, the California Department of Tax and Fee Administration (CDTFA) has implemented new sales and use tax rates across multiple districts. These updates reflect local tax measures passed during the November 2024 elections and apply to both in-state and remote sellers.


At Bizora, we help businesses stay ahead of compliance updates. Here’s what you need to know about the new tax rates—and how to adjust your systems quickly and accurately.


What Changed in California Sales and Use Tax Rates?

The CDTFA has officially updated district-level sales and use tax rates in several California cities and counties. These changes are binding and affect all taxable sales and purchases made on or after April 1, 2025.


Key districts with new rates include:

  • Los Angeles County

  • San Diego County

  • San Mateo County

  • Sacramento County


Each change may range from 0.125% to 1.00% depending on the district. You can view the full list of rate adjustments on the CDTFA’s April 2025 Tax Rate Page.


Who Is Affected by the New Sales and Use Tax Rates?

These tax rate changes apply to:

  • Brick-and-mortar retailers in California

  • Remote sellers meeting economic nexus thresholds

  • Service-based businesses that sell tangible products

  • Online marketplaces operating in California


If your business invoices customers, collects sales tax, or remits taxes to the state, you need to verify your rate tables are up to date.


How to Update Your Sales Tax Collection Systems

To stay compliant with the new tax rates, take the following steps:

  1. Check Your District Rates: Use the CDTFA’s California City and County Sales Tax Rates Lookup to confirm current rates by ZIP code.

  2. Update Your POS or E-Commerce Platform: Platforms like Shopify, QuickBooks, and Square allow you to manually or automatically sync new tax rates.

  3. Review Contracts and Invoices: For businesses invoicing clients or offering subscriptions, make sure future-dated charges reflect the new rates.

  4. Train Your Team: Ensure your finance and operations staff are aware of the changes to avoid billing errors.


Bizora Can Help You Stay Compliant

Navigating California’s tax rate landscape can be complex—especially for growing businesses. Bizora offers streamlined support for:

  • State sales tax registration and updates

  • District-specific tax compliance

  • Point-of-sale tax configuration

  • E-commerce tax system audits


Whether you're a local business or an out-of-state seller with nexus in California, Bizora can help you maintain compliance and avoid costly penalties.


Stay Ahead of Tax Rate Changes with Bizora


Keeping your systems aligned with California’s tax updates is part of maintaining good standing with state authorities. Let Bizora help you track key dates, implement rate changes, and stay ahead of compliance risk.


For more compliance tools and sales tax guidance, explore our services at bizora.ai or schedule a consultation today.

 
 
 

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