Updated: Nov 4, 2021
Sales tax is a tax paid to a governing body (state or local) on the sale of certain goods or services. The sales tax is generally administered at the state level. This paper has compiled a calendar of California Sales Tax Filing Due Date, and the sales tax rate that helps you determine the correct rate and the due date to follow.
Most states charge a sales tax on select goods and services, but California has its own way. The California sales tax is a minimum of 7.25%, which is not only the highest rate in the country but also some counties and cities charge even higher rates.
Sales tax collected from customers belongs to the state of California. You have the responsibility to manage the taxes you collect to remain compliant with state and local laws. The California sales tax rates will vary from county to county. Particularly, the sales tax rate is currently 7.25 % in Orange County, and the number in Los Angeles is 9.5 %.
The table below displays the 2021 quarterly sales tax filing due date in California:
The nearest upcoming due date for filing sales tax is on January 31. Here is the 2021 California City & County official list of Sales and Use Tax rates.
The impact of failing to collect California Sales Tax
If your business acts as an agent in California, you must register with The California Department of Tax and Fee Administration (CDTFA), and then collect the correct amount of sales tax per sale, file returns, and remit to the state tax authority. Failure can lead to applicable penalties and interest.
The consequences of failing to pay taxes either by the filing date or through an installment plan could be catastrophic. Therefore, your business should be well versed with sales tax to be sure to stay compliant with California state and local tax law.
If you need advice or services on any aspect of bookkeeping, accounting and tax, our specialists are ready to help. Get in touch with us for free quote.