California Tax Regulations for Wireless Devices

The state of California has specific tax regulations regarding the sales of cellular phones and other devices like tablets or mobile hot spots that use wireless service. These devices are often subsidized (sold at a discount) with a requirement that the customer enters a contract with a wireless service provider. For example, a phone that sells for $599.99 without a contract may sell for $0.01 with a two-year contract for wireless service. California requires that devices sold at a discount with a wireless service contract are taxed on the full, undiscounted price of the device without a contract. So in the example above, a phone sold for $0.01 with a two-year contract would be taxed on the $599.99 no-contract price.

The regulations described above for wireless devices sold at a discount with a contract are not applicable to the sale of devices that are end-of-life or obsolete.

Your estimated tax will be displayed when you review your order during checkout. For additional details on California tax rates and to see what rate applies to you, please visit the California State Board of Equalization Website.