Are information services taxable in California?
No. Pure information services are not taxable in California, and they stay exempt after S.B. 122 brings SaaS into the tax on 2027-01-01.
| Short answer | Not taxable |
|---|---|
| Effective date | S.B. 122 extends California tax to SaaS and prewritten software on 2027-01-01, but pure information services remain exempt. |
| Authority | S.B. 122 |
| Last reviewed | 2026-09-30 |
Why
California taxes tangible personal property, and selling information is not a sale of property. S.B. 122 (effective 2027-01-01) extends the tax to prewritten software and SaaS, but it excludes pure information services along with raw IaaS and custom software.
The line that matters from 2027 is delivery. An information product delivered through a SaaS application can look like prewritten software access, so AgentTax flags SaaS-delivered database products for review from 2027-01-01 rather than treating them as silently exempt.
Business vs. consumer buyers
Because California does not tax this category, buyer type does not change the answer.
Where the line is
- From 2027-01-01, information delivered through a hosted software application may be treated as taxable SaaS. Guidance from the CDTFA on that line is still pending.
How AgentTax classifies information services
Selling access to compiled information: databases, research products, reports and data feeds the seller assembles and furnishes to many customers. AgentTax routes AI research work to its information service category.
Run a California sale through the AgentTax engine and get the amount, the rate it used and the statute behind it. No signup needed.
Open the calculatorFrequently asked questions
- Does California S.B. 122 tax information services?
- No. S.B. 122 reaches prewritten software and SaaS from 2027-01-01, but pure information services remain exempt. Information delivered through a SaaS application is the grey zone.
Related
- All California digital tax answers
- Is SaaS taxable in California? (full guide)
- Is data processing taxable in California?
- Information services: every state we cover
- Are information services taxable in Arkansas?
- Are information services taxable in Connecticut?
- Are information services taxable in Florida?
- Are information services taxable in Georgia?
- Are information services taxable in Idaho?
- Are information services taxable in Illinois?
Further reading on the AgentTax blog
- It's Law: Newsom Signs California's SaaS Sales Tax, and the January 1, 2027 Clock Starts Now
- Where Does an Agent 'Use' Software? California's SB 122 Sourcing Workshop and the Situs Problem for AI Agents
- Users and Devices: What the CDTFA's First SB 122 Workshop Signals About Allocating Software Tax to Agents
Sources
This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions. Positions on this page come from the AgentTax tax policy registry (v1.24.0); see our methodology.