California Sales Tax for Contractors (2026): Materials vs Fixtures
Whether a California contractor charges sales tax on a remodel, why fixtures are different from materials, and three jobs worked at 7.25%.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in California
Materials only
You pay tax on materials as their consumer. You are the retailer of fixtures you supply and install, like sinks, faucets and prefabricated cabinets. On a lump-sum job, tax is on your cost of the fixture.
7.25%
7.25% statewide (6% state plus 1.25% local), plus district taxes
Itemizing or time and materials
Still the consumer on time and materials, unless you bill tax on marked-up materials.
None from the homeowner. You may give your supplier a resale certificate for fixtures.
Source: CDTFA Publication 9; Regulation 1521 (CDTFA guide, Feb 2025)
“Construction contractors are generally the consumers of materials.”
“Contractors are the retailers of fixtures they furnish and install”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $0 | $362.50 |
| Kitchen $40,000 job, $15,000 materials | $0 | $1,087.50 |
| Addition $90,000 job, $35,000 materials | $0 | $2,537.50 |
On the kitchen: The customer pays no sales tax. You pay $1,087.50 on $15,000 of materials at 7.25%, and build it into the price. Fixtures you supply, like faucets, sinks and many cabinets, are retail sales taxed on their price.
How it works in California
Materials
Become part of the building and lose their identity: lumber, concrete, drywall, tile. You pay tax when you buy them.
Fixtures
Keep their identity once installed: faucets, sinks, toilets, water heaters, many cabinets. They're retail sales; on a lump-sum job the tax is on your cost.
Labor
Installation labor on a home isn't taxed.
Also check
- The 7.25% includes 1.25% of mandatory local tax; district taxes add more where the job is.
- On time and materials you stay the consumer of materials, unless you bill sales tax on marked-up materials.
California sales tax questions
Do contractors charge sales tax in California?
On fixtures they sell and install, yes. On materials, the contractor pays the tax instead and doesn't charge it.
Is labor taxable in California?
Installation labor on real property isn't taxed.
Are cabinets materials or fixtures in California?
A cabinet is a fixture when at least 90% of its cost is incurred before it's installed, as with most factory-built cabinets. Otherwise it's materials.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.