California invoice generator

California invoice FAQ

How does California sales tax work on invoices?

California's statewide base sales tax is 7.25%, plus district taxes that vary by city/county and can push the combined rate to 11.75% in some jurisdictions. The destination of the sale (where goods are shipped or services rendered) determines the rate. CDTFA-registered sellers must show sales tax on invoices for taxable sales, typically as a separate line. Issueable supports two-tax-line if you need to split state base + district add-on for clarity.

What's taxable in California vs not?

Tangible personal property is generally taxable. Most services are NOT taxable in California (with exceptions for fabrication labor, repair labor when materials are sold, and specific services like custom software in some interpretations). Food sold for off-premises consumption (groceries) is typically exempt; restaurant food is taxed. Prewritten software delivered electronically, with no disk or other physical media, is not taxable (CDTFA Regulation 1502). Issueable applies tax to the whole invoice, so bill non-taxable services on their own invoice.

How do district taxes work?

California has hundreds of special tax districts on top of the 7.25% statewide rate. San Francisco's combined rate is 8.625%; Los Angeles County is 10.25-11.75% depending on city, and Lancaster and Palmdale, at 11.75%, are the highest in the state. The destination address determines which district applies. For B2B sales, the buyer's location matters; for B2C, where the goods are delivered. CDTFA publishes a destination-based rate lookup; many sellers use Stripe Tax, TaxJar, or Avalara to automate.

What's a resale certificate (Form CDTFA-230) and how do I handle it?

When a buyer purchases for resale (they'll resell to end customers), they provide a resale certificate to claim the sale tax-exempt. As the seller, you keep the certificate on file (CDTFA requires retention for 4 years post-transaction) and don't charge sales tax. Reference the certificate on the invoice: "Tax-exempt, resale per CDTFA-230 # [number] on file." Wrong handling here is a common audit finding.

What does an LLC need on a California invoice?

Your business name as registered with the California Secretary of State (must include "LLC" or "Limited Liability Company"), business address, and contact info. Sales tax permit number (a 9-digit account number from CDTFA) on every taxable-sales invoice. California also has the $800 annual minimum franchise tax; that's a tax obligation, not invoice content, but it's a heads-up for new LLCs.

Are services taxable in California?

Most services are NOT taxable. Exceptions: services that result in a tangible product (fabricated parts, custom-built items), repair labor on tangible goods (when parts are also sold), some specific telecom and utility services. Pure consulting, design (delivered digitally), legal, medical, and most professional services are typically exempt. When in doubt, check CDTFA Pub 17 or consult a CPA, the line between taxable and exempt is fact-specific.

How do I handle Bay Area vs Los Angeles vs Inland tax differences?

All on the same invoice template; just apply the destination's combined rate. SF: 8.625%. Oakland: 10.75%. Berkeley: 10.25%. San Jose: 10%. LA City: 10.25%. Inland Empire (Riverside / San Bernardino areas): 7.75-9.25% depending on city. Issueable lets you set the rate per invoice; for high-volume sellers, integrate with Stripe Tax to auto-apply by destination. The invoice format is the same; the rate differs.

Does California require itemized invoices?

There is no general dollar threshold for itemizing invoices in California. The itemization rule that does exist covers repair work: when parts and materials are worth more than 10% of the total repair charge, or you charge for them separately, list the parts at their retail price apart from the labor (CDTFA Regulation 1546). Issueable invoices are itemized by default (every line has description, quantity, rate, and total), which makes it easy to show which charges are taxable.