Gable Tax Group

Gable Tax Group Professional services company that provides state and local sales and use tax compliance and consult

California’s software and SaaS sales tax expansion is now law.Earlier this year, we warned California businesses that th...
09/29/2026

California’s software and SaaS sales tax expansion is now law.

Earlier this year, we warned California businesses that the state was considering expanding sales tax to SaaS and cloud software. SB 122 has now been enacted.

Beginning January 1, 2027, California will impose sales tax on prewritten software regardless of how it is delivered, including SaaS, remotely accessed software, electronically downloaded software, and AI-based software products.

Businesses that sell or purchase SaaS, software, and cloud applications should start reviewing their contracts, billing practices, taxability assumptions, invoicing, exemption documentation, and sales tax systems now.

Have questions about how California’s new software and SaaS tax rules may affect your business?
Schedule a call with me to discuss your specific situation, or email me at [email protected].

Gable Tax Group will continue monitoring CDTFA guidance as businesses prepare for the January 1, 2027 effective date.

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530 S. Lake Avenue #517
Pasadena, CA
91101

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Monday 8am - 5pm
Tuesday 8am - 5pm
Wednesday 8am - 5pm
Thursday 8am - 5pm
Friday 8am - 5pm

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