California is taxing SaaS. Get registered and your first return filed. Free.
Starting January 1, 2027, California applies a 7.25% state rate plus local district taxes to SaaS, prewritten software, and AI. Book a demo to learn more and Anrok handles your California registration and first return at no cost.
See your California exposure and claim your $1,200 off.
January 1, 2027
The tax takes effect
California's 7.25% state rate plus local district taxes apply to SaaS, prewritten software, and AI products. Most software companies selling into California will have a collection obligation for the first time.
AI is taxable
Treated as prewritten software
Every state taxing authority classifies AI the same way as prewritten software. If you sell AI products into California, your products are in scope and collection is required.
Don't wait
Registrations will fill up fast
What takes a couple of weeks now will take much longer come December. Registrations open 90 days early, so waiting until Q4 puts you at the back of a long line.
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California now taxes SaaS: What software companies need to know before January 1, 2027
California is taxing SaaS starting January 1, 2027. Here's what's changing, who's in scope, and how to get ready before the deadline.
Get ahead of the deadline.
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