California will tax software and SaaS starting January 1, 2027
Senate Bill 122 (Stats. 2026, ch. 23), signed June 29, 2026, adds digital products to California's definition of tangible personal property. A digital product is prewritten software, whether it's delivered on media, downloaded, or accessed remotely (SaaS). Retail sales of these products may now be subject to sales or use tax. (CDTFA L-1036)
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Guides
General information, not tax advice. This site summarizes public CDTFA guidance on Senate Bill 122 (Stats. 2026, ch. 23). It is not legal or tax advice, and it does not replace the law or CDTFA regulations. For your specific situation, consult a CPA or tax attorney, and consider asking CDTFA for written advice. Written advice can protect you, but phone advice cannot.