Yes. California’s Department of Tax and Fee Administration (CDTFA) lists district tax changes operative October 1, 2026, affecting the City of Perris, the City of Red Bluff, and Los Angeles County. The changes apply only within the specified boundaries; whether they affect your order depends on the delivery address and whether you are responsible for collecting tax on that sale.
California’s statewide rate is 7.25%, but district taxes can make the total rate higher and different from one location to another. For a specific delivery address, use CDTFA’s address lookup rather than relying on a ZIP code. If you sell directly and are required to collect California tax, apply the rate that is in effect for the transaction and delivery location; marketplace-facilitated sales may be handled under California’s marketplace facilitator rules.
Key takeaways
- CDTFA lists October 1, 2026 district tax changes for Perris, Red Bluff, and Los Angeles County.
- The changes apply only within the specified boundaries; check the complete delivery address.
- A ZIP code alone may not identify the correct California tax rate.
- Out-of-state sellers may owe district tax if engaged in business in California, including by meeting the state’s economic-nexus threshold.
- Shipping-charge taxability depends on the transaction; do not apply a blanket assumption.
Which California areas had October rate changes?
CDTFA’s notice for changes operative October 1, 2026, identifies three affected areas: the City of Perris in Riverside County, the City of Red Bluff in Tehama County, and Los Angeles County. The notice says the changes apply only within the indicated city or county limits. A customer’s county name or mailing city alone may not establish whether the delivery point is inside the affected boundary.
For the listed changes, Perris and Red Bluff each have a new city district tax, while Los Angeles County has a countywide district tax change. The exact combined rate can still depend on the particular address and any applicable district boundaries. Check the address in CDTFA’s current lookup before changing tax settings or deciding that an order is affected.
This is a California-specific update, unlike the questions discussed in Did pennsylvania change local sales tax sourcing on october 1 and Did washington, d.c. raise its sales tax rate. For California orders, use California’s own rate and sourcing guidance.
How does a delivery address affect the tax rate?
California’s total sales and use tax rate includes the statewide rate and, where applicable, local and district taxes. For shipped orders, the delivery destination is important in determining the applicable district tax when the seller is required to collect it. Two customers in the same broad area—or even with the same mailing city—may not necessarily have the same applicable district rate.
That does not mean every seller must collect tax on every California order. Your collection obligation depends on whether you are engaged in business in California and whether the sale is handled by a marketplace facilitator. Review Economic Nexus in California and Marketplace Facilitator Rules in California for those separate questions. Sellers using fulfillment inventory should also consider Amazon FBA sales tax in California, because inventory and other in-state activities can affect obligations.
How to check the rate for a California delivery address
Use CDTFA’s California City & County Sales & Use Tax Rate Information page and select “Find a Sales and Use Tax Rate by Address.” Enter the complete delivery address and search. CDTFA says the result reflects the current rate for the address entered. For an order affected by a rate change, check the rate applicable to the transaction date rather than assuming a current lookup result answers a historical filing question.
If the address is ambiguous, the lookup does not resolve the boundary, or your records show a different jurisdiction, contact CDTFA for assistance. Keep the address and the rate determination with your transaction records. If you are unsure whether the change applies to your business or how to configure collection, the exact position depends on your circumstances—confirm with the state, or talk to us and we will check it for you.
Why a ZIP code may not identify the correct rate
No. CDTFA cautions that a ZIP code or mailing address alone may not identify the correct tax rate. Postal routing can associate an address with a city or post office in a neighboring jurisdiction, even when the physical delivery location is elsewhere. District boundaries also do not necessarily follow ZIP-code boundaries.
Use the full street address in CDTFA’s lookup instead of assigning one rate to an entire ZIP code. If your checkout or order system groups addresses by ZIP, review whether that method can distinguish the relevant California tax jurisdictions and correct any affected orders or settings.
When out-of-state sellers must collect district tax
Being located outside California does not by itself remove a seller’s California tax obligations. CDTFA says a retailer engaged in business in California must register and collect, report, and pay applicable tax on taxable sales. Physical presence can create an obligation; California also has an economic-nexus threshold for sales of tangible personal property delivered into the state. CDTFA’s guidance describes the threshold as more than $500,000 in total sales of tangible personal property for delivery in California by the retailer and related persons during the preceding or current calendar year.
CDTFA states that a retailer meeting that threshold is considered engaged in business in every California district that imposes district tax, even without physical presence in each district, and must collect applicable district use tax on taxable deliveries there. Other California activities may independently require registration. Marketplace-facilitated sales have separate collection and reporting considerations, so do not assume marketplace sales and direct sales are treated identically. The exact position depends on your circumstances—confirm with CDTFA or ask us to review your facts.
When to register and what to do about a seller’s permit
A retailer making taxable sales in California generally needs to register with CDTFA when it is engaged in business in the state. The relevant facts can include physical presence, inventory, representatives, and the economic-nexus threshold. Registration requirements and the type of account can differ depending on whether you are selling from within California or selling into the state from elsewhere.
If you determine that you need to register, apply through CDTFA for the appropriate seller’s permit or use-tax registration before collecting and reporting as required. Do not treat a marketplace’s collection on some transactions as a substitute for checking your own registration obligations, especially for direct sales. If you may have missed registration or collection, review Back sales tax and penalties in California and get advice based on your sales history.
When to start charging the new rate and how to report it
For the changes in CDTFA’s October 2026 notice, the new rates are operative October 1, 2026. A seller responsible for collecting tax should use the applicable rate for taxable transactions on or after that date when the delivery address falls within an affected boundary. Do not apply the new rate to every California order: the notice limits the changes to the specified areas.
Report taxable sales and the applicable district tax on your CDTFA return using the reporting instructions and location information that apply to your account. Keep records that support the delivery address, transaction date, taxable amount, and rate used. If a return covers transactions on both sides of a rate change, separate the transactions as needed to report them accurately; consult CDTFA’s filing instructions if you are uncertain how a particular return field applies.
Are delivery and shipping charges taxable in California?
California’s treatment of delivery and shipping charges depends on the facts of the transaction, including how the charge is stated and whether the seller’s delivery arrangement meets the state’s conditions for excluding a charge from taxable gross receipts. Do not assume that every separately labeled shipping charge is exempt, or that every delivery charge is taxable.
Review CDTFA’s guidance on applying tax to sales and purchases for the specific arrangement, including whether the charge is separately stated and how delivery is performed. If your checkout combines shipping, handling, or other charges, have the treatment reviewed before applying a blanket rule across all orders. The exact position depends on your circumstances—confirm with CDTFA or talk to us and we will check it for you.
California district tax changes operative October 1, 2026, as listed by CDTFA
| Affected area | County | Change described by CDTFA | What a seller should verify |
|---|---|---|---|
| City of Perris | Riverside | New 1.000% city district tax; listed total rate changes from 7.750% to 8.750% | Confirm the delivery address is within Perris city limits and use the applicable rate for the transaction date. |
| City of Red Bluff | Tehama | New 1.000% city district tax; listed total rate changes from 7.500% to 8.500% | Confirm the delivery address is within Red Bluff city limits; do not infer this from ZIP code alone. |
| County of Los Angeles | Los Angeles | New 0.500% countywide district tax; listed total rate changes from 9.750% to 10.250% | Check the specific address and applicable district code; the notice describes the countywide change but address lookup remains the safer check. |
Frequently asked questions
Did California sales-tax rates change in October?
Yes. CDTFA lists district tax changes operative October 1, 2026, for Perris, Red Bluff, and Los Angeles County. The changes apply only within the specified boundaries, so they do not affect every California delivery.
Does California sales tax depend on the customer’s delivery address?
The delivery location is important for determining applicable district tax on a shipped sale when you are responsible for collecting tax. California’s statewide rate applies statewide, while local district taxes can vary by location. Use the full address to identify the applicable rate.
How do I find the sales-tax rate for a specific California address?
Use CDTFA’s “Find a Sales and Use Tax Rate by Address” lookup on its California City & County Sales & Use Tax Rate Information page. Enter the complete delivery address and check the rate applicable to the transaction date. Contact CDTFA if the result or boundary is unclear.
Do ZIP codes determine California sales-tax rates?
No. CDTFA says a ZIP code or mailing address alone may not identify the correct rate because postal routing and tax boundaries can differ. Look up the full street address instead.
Do out-of-state sellers need to collect California district taxes?
They may. A seller engaged in business in California must generally register and collect applicable tax on taxable sales, and CDTFA says sellers exceeding the state’s economic-nexus threshold are considered engaged in business in districts that impose district tax. Physical presence and other activities can also matter, so check your specific facts and marketplace sales separately.
When must a retailer start charging a new sales-tax rate?
For the changes covered here, CDTFA lists October 1, 2026, as the operative date. A retailer responsible for collection should apply the new rate to qualifying taxable transactions on or after that date when the delivery address is within the affected area.
Are delivery or shipping charges taxable in California?
It depends on the transaction and the way the delivery charge is stated and handled. California has conditions for the tax treatment of delivery charges, so a separate line item is not automatically exempt. Check CDTFA’s guidance for your arrangement.
Official sources
- https://cdtfa.ca.gov/taxes-and-fees/explanationoftaxratechanges.htm
- https://cdtfa.ca.gov/taxes-and-fees/sales-use-tax-rates.htm
- https://cdtfa.ca.gov/taxes-and-fees/tax-rate-faq.htm
- https://cdtfa.ca.gov/industry/wayfair/frequently-asked-questions.htm
- https://cdtfa.ca.gov/industry/local-and-district-retailer-taxes/district-tax.htm
- https://cdtfa.ca.gov/taxes-and-fees/applying-tax-sales-purchases-faq.htm
Related reading
- Amazon FBA sales tax in California
- Back sales tax and penalties in California
- Did pennsylvania change local sales tax sourcing on october 1
- Did washington, d.c. raise its sales tax rate
- Our sales tax compliance services
Getting this handled
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Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This article is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.