Rates last verified: August 25th, 2026
Sources: California Department of Tax and Fee Administration; California Public Utilities Commission. Full citations at the bottom of this page.
A California telecom bill collects charges for three different authorities. The California Governor's Office of Emergency Services (Cal OES) sets the 911 and 988 surcharges each year, and the California Department of Tax and Fee Administration (CDTFA) collects them. The California Public Utilities Commission (CPUC) adds a per-line public purpose surcharge and a percentage user fee on intrastate revenue. And cities and counties impose their own utility users taxes under local ordinances.
Quick Facts
| Item | California Treatment |
|---|---|
| 911 surcharge | $0.41 per access line, per month (2026); prepaid pays $0.41 per retail transaction |
| 988 surcharge | $0.05 per access line, per month (2026, down from $0.08); prepaid pays $0.05 per retail transaction |
| CPUC Public Purpose Programs surcharge | $0.90 per active access line through August 31, 2026; $1.05 effective September 1, 2026; applies to wireline, wireless (prepaid and postpaid), and Voice over Internet Protocol (VoIP) |
| CPUC user fee | 1.8% of intrastate telecommunications revenues, effective January 1, 2026 |
| Local utility users taxes | Set by each city and county; on prepaid, collected as a percentage of the retail price, with rates that vary by jurisdiction |
| Internet access | Exempt under the federal Internet Tax Freedom Act |
How California Taxes Telecom Services
California's telecom charges are program surcharges and fees rather than a single tax with a single rate. Each layer has its own administrator, its own base, and its own change schedule, which is why a California invoice rarely looks the same two years in a row.
The per-line layer moves annually. Cal OES determines the 911 and 988 surcharge amounts by October 1 each year, and the new amounts take effect on January 1. For 2026, the 911 surcharge stayed at 41 cents per access line while the 988 surcharge dropped from 8 cents to 5 cents.
The CPUC layer moves on its own schedule. Since April 1, 2023, California has assessed one flat per-line surcharge in place of the six variable-rate public purpose surcharges that used to appear on bills. That surcharge is 90 cents per active access line now and rises to $1.05 on September 1, 2026. On top of it, telecommunications corporations pay a CPUC user fee of 1.8% of intrastate revenues, meaning service that originates and terminates within California.
911, 988, And Other Per-Line Surcharges
The 911 surcharge is 41 cents per access line, per month, for 2026. The 988 surcharge, which funds the crisis line, is 5 cents per access line, per month. Both apply per line for postpaid service; for prepaid mobile telephony services, the seller collects the same amounts per retail transaction at the point of sale. CDTFA administers collection, and the amounts run January 1 through December 31 before Cal OES resets them.
CPUC Surcharges And Fees
The Public Purpose Programs surcharge funds six programs, including California LifeLine, the Deaf and Disabled Telecommunications Program, the two high-cost funds, the California Teleconnect Fund, and the California Advanced Services Fund. It applies to all telephone corporations: wireline, wireless prepaid and postpaid, and VoIP. The rate is a flat 90 cents per active access line, rising to $1.05 on September 1, 2026.
The CPUC user fee is 1.8% of intrastate telecommunications revenues, effective January 1, 2026, with a $100 annual minimum. Interstate services and equipment charges sit outside its base.
Local Utility Users Taxes
California cities and counties impose utility users taxes on telecommunications under their own ordinances, and each jurisdiction sets its own rate. On prepaid service, the local charge is collected as a percentage of the retail selling price, and CDTFA publishes the current rate for every city and county. Getting the local layer right means placing each customer in the correct city or county, since neighboring jurisdictions can charge different rates or none at all.
Taxability By Service Type
- The CPUC Public Purpose Programs surcharge applies to wireline, wireless (prepaid and postpaid), and VoIP service.
- The 911 and 988 surcharges apply per access line, and per retail transaction for prepaid.
- The CPUC user fee applies to intrastate service only, meaning calls that originate and terminate in California.
- Internet access is exempt from state and local taxes under the federal Internet Tax Freedom Act.
How CereTax Handles California
California's difficulty is velocity and layering. The per-line amounts reset every January 1, the CPUC surcharge moves on its own schedule, the user fee applies to only the intrastate slice of revenue, and local ordinances set their own utility users tax rates city by city. CereTax applies each layer to the right base, assigns local taxes at the rooftop level, and updates when the administrators move their rates, with an audit trail behind every calculation. If you serve customers in California, book a demo and bring a real invoice.
Sources
- California Department of Tax and Fee Administration, Special Notice L-1012, 2026 Emergency Telephone Users Surcharge Rates. Accessed August 17, 2026.
- California Department of Tax and Fee Administration, Tax Guide for Sellers of Prepaid Mobile Telephony Services and Telecommunication Service Suppliers. Accessed August 17, 2026.
- California Public Utilities Commission, Surcharge Rates. Accessed August 17, 2026.
- California Public Utilities Commission, CPUC User Fee (Resolution M-4879). Accessed August 17, 2026.
- Internet Tax Freedom Act, 47 U.S.C. § 151 note.
See how other states compare on the telecom tax by state hub.
