California is taxing SaaS. Get registered and your first year covered. Free.
Starting Jan. 1, 2027, California applies a 7.25% state rate plus local district taxes that push combined rates as high as 10.75% in some cities. The tax covers SaaS, prewritten software, and AI. Book a demo and Anrok covers your California registration and first year of filing.
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Jan. 1, 2027: California's tax takes effect
California's combined rate runs 7.25% to 10.75% or higher, covering SaaS, prewritten software, and AI. Most software companies selling into California will have a collection obligation for the first time.
AI counts 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.
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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