Illustration of the California SaaS sales tax under SB/AB 122 — a state outline with a cloud icon over a stack of receipts, green and orange accents
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California SaaS Sales Tax 2027: SB/AB 122 Guide

BySW Accounting admin

Will California start charging sales tax on my SaaS subscriptions? Under a 2026 budget trailer bill (SB/AB 122), yes — as drafted, the California SaaS sales tax would extend the state’s 7.25% (plus district) sales and use tax to prewritten software and Software-as-a-Service beginning January 1, 2027, sourced to the purchaser’s California billing address. If…