Cal. Code Regs., tit. 18, § 1685.5 — Calculation of Estimated Use Tax–Use Tax Table

Reference: Section 6452.1, Revenue and Taxation Code.

# (a)

In General. Revenue and Taxation Code (RTC) section 6452.1 requires the California Department of Tax and Fee Administration (Department) to annually calculate the estimated amount of use tax due according to a person's adjusted gross income (AGI) and make such amounts available to the Franchise Tax Board (FTB), by July 30 of each year, in the form of a use tax table for inclusion in the instructions to the FTB's returns.

# (b)

Who is Eligible to Use the Department's Use Tax Tables.
(1) Consumers may elect to use the Department's use tax tables included in the instructions to their FTB returns to report their estimated use tax liabilities for one or more single nonbusiness purchases of individual items of tangible personal property each with a sales price of less than one thousand dollars ($1,000) on their FTB returns. However, eligible consumers may still calculate their actual use tax liabilities using the worksheets in the instructions to their FTB returns and report their actual use tax liabilities on their FTB returns. Consumers are not required to use the use tax tables included in the instructions to their FTB returns.
(2) Consumers may not use the Department's use tax tables to estimate their use tax liabilities for business purchases. Businesses required to hold a seller's permit or to register with the Department under the Sales and Use Tax Law and report their use tax liabilities directly to the Department may not use the Department's use tax tables.

# (c)

Safe Harbor. If eligible consumers use the use tax tables included in the instructions to their FTB returns to estimate their use tax liabilities for qualified nonbusiness purchases and correctly report their estimated use tax liabilities for their qualified nonbusiness purchases in accordance with their AGI ranges, then the Department may not assess the difference, if any, between the estimated use tax liabilities reported in accordance with the use tax tables and the consumers' actual use tax liabilities for qualified nonbusiness purchases.

# (d)

Definitions and Data Sources.
(1) AGI Ranges. The Department's use tax tables shall be separated into fifteen (15) AGI ranges as follows:
(A) AGI less than $10,000;
(B) AGI of $10,000 to $19,999;
(C) AGI of $20,000 to $29,999;
(D) AGI of $30,000 to $39,999;
(E) AGI of $40,000 to $49,999;
(F) AGI of $50,000 to $59,999;
(G) AGI of $60,000 to $69,999;
(H) AGI of $70,000 to $79,999;
(I) AGI of $80,000 to $89,999;
(J) AGI of $90,000 to $99,999;
(K) AGI of $100,000 to $124,999;
(L) AGI of $125,000 to $149,999;
(M) AGI of $150,000 to $174,999;
(N) AGI of $175,000 to $199,999;
(O) AGI more than $199,999
(2) Use Tax Liability Factor. On June 1, 2026, and each June 1 thereafter, the use tax liability factor for the current calendar year shall be calculated by multiplying the percentage of income spent on taxable purchases by 0.017, multiplying the product by the average state, local, and district sales and use tax rate, and then rounding the result to the nearest thousandth of a percent.
(3) Total Personal Income. Total personal income shall be determined by reference to the most current personal income data published by the United States Bureau of Economic Analysis for an entire calendar year.
(4) Total Spending on Electronic Shopping. Total spending on electronic shopping shall be determined by summing the most current quarterly retail e-commerce sales data published by the United States Census Bureau for an entire calendar year.
(5) Total Spending on Taxable Purchases. Total spending on taxable purchases shall be determined by multiplying total spending on electronic shopping by 80 percent (0.80), so that the result does not include spending on nontaxable purchases, and then rounding the result to the nearest tenth of a percent.
(6) Percentage of Income Spent on Taxable Purchases. The percentage of income spent on taxable purchases shall be calculated by dividing total spending on taxable purchases by total personal income, multiplying the result by 100, and rounding the result to the nearest tenth of a percent.
(7) Average State, Local, and District Sales and Use Tax Rate. The average state, local, and district sales and use tax rate shall be the total of:
The average of the rates of the statewide sales and use taxes imposed under article XIII of the California Constitution and the Sales and Use Tax Law (§RTC section 6001 et seq.) during each quarter of the preceding calendar year;
The average of the statewide rate of local tax imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law (§RTC section 7200 et seq.) during each quarter of the preceding calendar year; and
The weighted average of the rates of the district taxes imposed under the Transactions and Use Tax Law (§RTC section 7251 et seq.) in effect in the various jurisdictions throughout the state during each quarter of the most recent calendar year for which the Department has taxable sales data by jurisdiction after taking into account the proportion of the total statewide taxable transactions (by dollar) reported for each jurisdiction during each quarter of that calendar year.

# (e)

Calculation of the Estimated Use Tax Liability.
(1) The estimated use tax liability for consumers in the AGI range described in subdivision (d)(1)(A) shall be determined by multiplying $5,000 by the use tax liability factor and then rounding the result to the nearest whole dollar.
(2) The estimated use tax liability for consumers in each of the AGI ranges described in subdivision (d)(1)(B) through (N) shall be determined by multiplying the midpoint of each AGI range by the use tax liability factor and then rounding the result to the nearest whole dollar.
(3) The estimated use tax liability for consumers in the AGI range described in subdivision (d)(1)(O) shall be determined by multiplying each consumer's actual AGI by the use tax liability factor and then rounding the result to the nearest whole dollar.

# (f)

Use Tax Table Format.
The use tax tables for calendar year 2026 and subsequent years shall utilize the same format as follows:
Adjusted Gross Income. Use Tax Table Format
Adjusted Gross Income (AGI) Range
Use Tax Liability
Less Than $10,000
$
$10,000 to $19,999
$
$20,000 to $29,999
$
$30,000 to $39,999
$
$40,000 to $49,999
$
$50,000 to $59,999
$
$60,000 to $69,999
$
$70,000 to $79,999
$
$80,000 to $89,999
$
$90,000 to $99,999
$
$100,000 to $124,999
$
$125,000 to $149,999
$
$150,000 to $174,999
$
$175,000 to $199,999
$
More than $199,999 -Multiply AGI by __% (.000__)
History-Adopted July 26, 2011, effective September 15, 2011.
Amended March 20, 2012, effective May 31, 2012. New subdivisions (a)(1), (a)(2) and (a)(3) were added. Subdivision (b)(1) was amended to increase the number of and modify the intervals of adjusted gross income ranges in the use tax tables. Subdivision (b)(2) was amended to substitute "June" for "May." New subdivision (b)(5) was added; renumbered remaining subdivisions. Newly designated subdivision (b)(6) was amended to replace "electronic and mail order" with "taxable." Subdivision (d)(2) was amended to provide the format of the use tax table for calendar year 2012 forward.
Amended April 24, 2013, effective July 1, 2013. In subdivision (b)(2), deleted "and each June 1 thereafter," in the second sentence. Additionally, a sentence was added prescribing the manner in which the Board shall annually calculate the estimated amount of use tax due according to a person's adjusted gross income.
Amended March 25, 2015, effective July 1, 2015. In subdivision (b)(7)(A), deleted "section 35 of" from before "article."
Amended effective September 12, 2019. The amendments replaced "Board of Equalization (BOE)" with "California Department of Tax and Fee Administration (Department)" in subdivision (a)(1); replaced "BOE" with "Department" in subdivision (a)(2), (a)(2)(B), and (a)(3); added "dollars" to subdivision (a)(2)(A); deleted "the BOE shall calculate" from after "June 1, 2012," and added "shall be calculated" after "current calendar year" in the second sentence in subdivision (b)(2); replaced "thereafter" with "through June 1, 2018," deleted "the BOE shall calculate" from before "the use tax liability factor," and added "shall be calculated" after "current calendar year" in the third sentence in subdivision (b)(2); and added the fourth sentence to subdivision (b)(2).
Amended effective July 8, 2020. The amendments deleted "and each June 1 thereafter, "from after "June 1, 2019," in the fourth sentence in subdivision (b)(2); and added the fifth sentence to subdivision (b)(2).
Amended effective July 13, 2021. The amendments deleted "and each June 1 thereafter," from after "June 1, 2020," in the fifth sentence in subdivision (b)(2); added the sixth sentence to subdivision (b)(2); and added Government Code sections 15570.22 and 15570.24 to the authority note.
Amendments filed November 26, 2025, and operative January 1, 2026 (Register 2025, No. 49). The amendments replaced "Estimated Use Tax and Use Tax Table. The" with "Revenue … requires the" and deleted "is required" from after "(Department)" in subdivision (a)(1) and reformatted subdivision (a)(1) as subdivision (a); renumbered subdivisions (a)(2), (a)(2)(A), and (a)(2)(B), as new subdivisions (b), (b)(1), and (b)(2), respectively; replaced "Department" with "the Department's" in the title of new subdivision (b); inserted "Department's" in new subdivision (b)(1); replaced "The" with "Consumers may not use the Department's," "table may not be used" with "tables," and ", including purchases made by businesses" with ". Businesses," and inserted "their" after "estimate" and "may not … tables" in new subdivision (b)(2); renumbered subdivisions (a)(3), (b), (c), and (d), as new subdivisions (c), (d), (e), and (f), respectively; inserted "Department's" and replaced "table" with "tables" in new subdivision (d)(1); deleted "or Use Tax Table Percentage" from the title of and replaced all the text in new subdivision (d)(2), which provided "For the 2011 calendar year the use tax liability factor or use tax table percentage shall be 0.070 percent (.0007). On June 1, 2012, the use tax liability factor or use tax table percentage for the current calendar year shall be calculated by multiplying the percentage of income spent on taxable purchases for the preceding calendar year by 0.37, multiplying the product by the average state, local, and district sales and use tax rate, and then rounding the result to the nearest thousandth of a percent. On June 1, 2013, and each June 1 through June 1, 2018, the use tax liability factor or use tax table percentage for the current calendar year shall be calculated by multiplying the percentage of income spent on taxable purchases for the preceding calendar year by 0.23, multiplying the product by the average state, local, and district sales and use tax rate, and then rounding the result to the nearest thousandth of a percent. On June 1, 2019, the use tax liability factor or use tax table percentage for the current calendar year shall be calculated by multiplying the percentage of income spent on taxable purchases for the preceding calendar year by 0.10, multiplying the product by the average state, local, and district sales and use tax rate, and then rounding the result to the nearest thousandth of a percent. On June 1, 2020, the use tax liability factor or use tax table percentage for the current calendar year shall be calculated by multiplying the percentage of income spent on taxable purchases for the preceding calendar year by 0.036, multiplying the product by the average state, local, and district sales and use tax rate, and then rounding the result to the nearest thousandth of a percent. On June 1, 2021, and each June 1 thereafter, the use tax liability factor or use tax table percentage for the current calendar year shall be calculated by multiplying the percentage of income spent on taxable purchases for the preceding calendar year by 0.03, multiplying the product by the average state, local, and district sales and use tax rate, and then rounding the result to the nearest thousandth of a percent"; inserted "for … year" in new subdivision (d)(3); replaced "at" with "on" in the title and text of new subdivision (d)(4); deleted "and Mail Order Houses" from after "Shopping" and "and mail order houses" from after "shopping" in the title and text of new subdivision (d)(4); replaced "reference to" with "summing" and "electronic shopping and mail order house spending" with "quarterly … sales" and inserted "for … year" in new subdivision (d)(4); replaced the colon at the end of new subdivision (d)(5) with "multiplying … percent" and deleted subdivisions (A), (A)(i) through (vi), (B), and (C) from new subdivision (d)(5), which provided "(A) Determining the percentage, rounded to the nearest tenth of a percent, of total spending at electronic shopping and mail order houses that are not included in the following categories of items, by reference to the most current retail trade product lines statistics by kind of business data published by the United States Census Bureau: (i) Groceries and other foods for human consumption off premises, excluding bottled, canned, or packaged soft drinks; (ii) Prescriptions; (iii) Video content downloads; (iv) Audio content downloads; (v) Prepackaged computer software, including software downloads; and (vi) All nonmerchandise receipts. (B) Adding ten billion dollars ($10,000,000,000) to the total spending at electronic shopping and mail order houses to account for spending that is not included in the spending data published by the United States Census Bureau; and (C) Multiplying the sum calculated in (B) by the percentage of total spending at electronic shopping and mail order houses that are not included in the categories of items listed in (A) above so that the result does not include spending on nontaxable purchases, and then rounding the result to the nearest tenth of a percent"; deleted "during a calendar year" from before "shall" and "the" from after "dividing" and replaced "for that year by the total personal income for that year" with "by total personal income" in new subdivision (d)(6); deleted "for a calendar year" from after "rate" in new subdivision (d)(7); inserted "average of the" and replaced "in effect on January 1 of that" with "during … calendar" in new subdivisions (d)(7)(A) and (B); replaced "Rev. & Tax. Code, §" with "RTC section" in new subdivisions (d)(7)(A), (B), and (C); replaced "rate" with "rates" in new subdivision (d)(7)(B); replaced "rate" with "of the rates," "on January 1 of that year" with "during each quarter of the … by jurisdiction," and "the fourth quarter of the calendar year that is two years prior to the calendar year for which the calculation is made. For example, the total reported taxable transactions (by dollar) for the fourth quarter of 2010 shall be used to determine the weighted average rate of the district tax rates in effect on January 1, 2012, to calculate the weighted average rate of district taxes for calendar year 2012" with "each quarter of that calendar year" in new subdivision (d)(7)(C); inserted "consumers in" in new subdivisions (e)(1) and (3); replaced "(b)" with "(d)"and deleted "or use tax table percentage" from after "factor" in new subdivisions (e)(1), (2), and (3); inserted "consumers in each of" in new subdivision (e)(2); replaced "range member's" with "consumer's" in new subdivision (e)(3); reformatted new subdivision (f)(2) as new subdivision (f) and replaced "2012" with "2026" in new subdivision (f); and deleted new subdivision (f)(1), which provided the use tax table for calendar year 2011.