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Who must register

California sellers

Digital product sellers in California who are not already registered must register for a seller's permit, file sales and use tax returns, and report and pay tax on retail sales of digital products. (L-1036)

Out-of-state sellers

Out-of-state sellers "engaged in business in this state" as defined in Revenue and Taxation Code §6203 must register for a Certificate of Registration–Use Tax, collect and report use tax on retail sales of digital products to California consumers, and pay it to CDTFA.

Whether you are "engaged in business" depends on §6203 and your facts (for example, physical presence or sales volume into California). Review this with a CPA. (Confirm with a tax professional.)

Already registered?

If you already hold a seller's permit, CDTFA's guidance doesn't describe a separate permit for digital products. Plan to report taxable digital product sales on your returns starting in 2027. (Confirm with a tax professional.)

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.