@jasonlk: California is adding sales tax to SaaS starting Jan 1 Not sure they could have picked a worse time - 7.25% state + loca…
Summary
California is adding sales tax to Software-as-a-Service (SaaS) starting January 1, leading to price increases of 8-10% for customers and impacting software and AI budgets for businesses based in the state.
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Cached at: 08/27/26, 09:41 PM
California is adding sales tax to SaaS starting Jan 1
Not sure they could have picked a worse time
- 7.25% state + local district taxes, so 8-10% for most customers
- Every CA-based customer you have is getting a price increase you didn’t send
- And if you’re based here, your entire software and AI budget goes up 8-10% in 2027
Stacks on top of vendor uplifts. A 7% renewal increase becomes 16%.
Custom software and AWS-style infrastructure are excluded
Nobody knows yet where usage-based AI spend lands.
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