Estimated Use Tax - Use Tax Table

  1. What is the use tax table?
  2. Where can I find the use tax table?
  3. What is use tax?
  4. Who can use the use tax table on the FTB income tax returns?
  5. If an invoice or transaction total is $1,000 or more, may I still use the use tax table to report items on that invoice that cost less than $1,000?
  6. I am an individual who is not required to hold a seller's permit or a consumer use tax account. I have made purchases of $300. Am I required to use the table?
  7. I am married filing separately. Can I report using the table?
  8. I am a sole proprietor and file an annual sales and use tax return for my crafting business. I purchased a home computer for personal use over the internet and the retailer did not charge me sales tax. Can I use the table to report the purchase on my FTB income tax return?
  9. My husband and I live in Sacramento and order gifts for our children from the internet. The out-of-state online retailer ships the gifts directly to them and does not charge California sales tax. My children live in San Francisco, CA and Denver, CO. Do I owe use tax on those purchases?

  1. What is the use tax table?

    The table is an easy tool for individuals to report their use tax when filing their California Franchise Tax Board (FTB) annual income tax returns. The table provides an estimated use tax liability, as calculated by the Board of Equalization, which an individual may use to report their use tax liability.

  2. Where can I find the use tax table?

    The table is included with the instructions for the FTB income tax return instructions. You may also find the table here.

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  3. What is use tax?

    Use tax is similar to sales tax. When you buy merchandise, usually from out-of-state retailers over the internet or by mail order, California use tax is due on those purchases. However, if the out-of-state retailer charges you California sales or use tax, you do not need to report tax on that purchase. The use tax rate is the same as the sales tax rate.

  4. Who can use the use tax table on the FTB income tax returns?

    Individuals, who are not required to hold a California Seller's Permit or a Consumer Use Tax account, may use the use tax table to report their use tax. The tax due is based on their California Adjusted Gross Income (AGI), but only on purchases of individual items for less than $1,000. Individual items purchased for $1,000 or more must be calculated separately. The threshold for reporting use tax is based on the purchase price of the individual items, not the total purchase amount.

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  5. If an invoice or transaction total is $1,000 or more, may I still use the use tax table to report items on that invoice that cost less than $1,000?

    The $1,000 threshold refers to the selling price of an individual item. In other words, if you purchase one non-business item for $950, you may use the table to report that purchase. If you purchase two of those same items at $950 each for an invoice total of $1,900 (2 X $950), you may still use the table to report those purchases. On the other hand, if you purchase an individual item with a selling price of $1,200, the purchase of that item may not be reported using the use tax table. That $1,200 item must be reported on an actual basis.

  6. I am an individual who is not required to hold a seller's permit or a consumer use tax account. I have made purchases of $300. Am I required to use the table?

    You are not required to use the table. You may choose to report the use tax based on your actual purchases.

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  7. I am married filing separately. Can I report using the table?

    Married persons filing separately may use the table. The person filing the return must use the Adjusted Gross Income (AGI) they record on their separate return. When their spouse files his/her return, the spouse must also report the use tax based on the AGI on his/her separate return.

  8. I am a sole proprietor and file an annual sales and use tax return for my crafting business. I purchased a computer for personal use over the internet and the retailer did not charge me sales tax. Can I use the table to report the purchase on my FTB income tax return?

    Yes. Even though you are registered as an individual business (sole proprietor), you may report your non-business purchases on individual items of tangible personal property each with a sales price of less than one thousand ($1,000) on your FTB return. Business purchases subject to use tax should be reported on your sales and use tax return.

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  9. My husband and I live in Sacramento and order gifts for our children from the internet. The out-of-state online retailer ships the gifts directly to them and does not charge California sales tax. My children live in San Francisco, CA and Denver, CO. Do I owe use tax on those purchases?

    Use tax is due only on purchases of tangible personal property used in California. You may use the table to report your purchases subject to use tax for the item sent to your child in San Francisco, if the purchase is for an individual item under $1,000. Any purchase shipped directly from a seller to your child in Colorado would not be subject to California use tax.

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