Invoicing in California

Built-in handling of CA sales tax (7.249999999999999% state rate) and statutory late fees.

State sales tax
7.25%
Late fee max
1.5%/mo
Metros covered
25
Written contract req.
Yes
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California compliance at a glance

  • Sales tax: 7.25% state rate. Services generally exempt; tangible goods taxable. Local rates push combined to 10.75%.
  • Late fees: Up to 1.5% per month. (Cal. Civ. Code 搂3287; 搂1671 (penalty rule)) Late fees must be reasonable and in written agreement; statutory interest 10%/yr otherwise.
  • Written contracts: Required for jobs over $500.
  • Prompt-pay law: California Prompt Payment Act (Gov. Code 搂927); Bus. & Prof. Code 搂7108.5 (construction). Public contracts: payment within 45 days. Construction subs: 10 days from prime contractor's receipt.

California metros

California guides