Aircraft tax · United States

California aircraft sales and use tax

California charges sales or use tax at the rate where the aircraft is hangared, and presumes an aircraft brought in within 12 months of purchase was bought for California use. Repair labor is not taxed; parts are. Counties may also charge personal property tax.

Every answer below quotes the state's own source. Last checked October 18, 2026. Estimate the tax on your aircraft

Do you pay sales tax on an aircraft bought in California?

Taxed. Sales or use tax at the rate for the place the aircraft is principally hangared, which varies by district.

The use tax rate is the same as the sales tax rate and is based on where you principally hangar the aircraft.
California Department of Tax and Fee Administration, Tax Guide for Purchasers of Vehicles, Vessels, and Aircraft: Aircraft · checked October 18, 2026

Do you owe use tax on an aircraft bought outside California?

Depends. An aircraft bought out of state and brought into California within 12 months is presumed bought for California use if the buyer is a California resident, if it is subject to California property tax in the first 12 months, or, for a nonresident, if it is used or stored in California more than half that time. The presumption can be rebutted, and tax paid to another state is credited.

it is presumed that the aircraft was purchased for use in California.
California Department of Tax and Fee Administration, Aircraft tax guide · checked October 18, 2026
The aircraft is subject to property tax in California during the first 12 months of ownership.
California Department of Tax and Fee Administration, Aircraft tax guide · checked October 18, 2026

What aircraft sales tax exemptions does California have?

Depends. Common carrier use over 50 percent in the first 12 months; aircraft brought in within 12 months solely for repair, retrofit or modification at an FAA repair station; interstate or foreign commerce use; a nonresident whose only California use is flying it out; and purchases from close family members.

more than 50 percent of the operational use
California Department of Tax and Fee Administration, Aircraft tax guide · checked October 18, 2026
use tax does not apply to the purchase of an aircraft brought into this state within the first 12 months of ownership exclusively for the purposes of repair, retrofit, or modification.
California Department of Tax and Fee Administration, Aircraft tax guide · checked October 18, 2026

Are aircraft rentals taxed in California?

Taxed. A lease is a sale: the lessor collects use tax from the renter on each rental, unless the lessor paid tax on the aircraft's purchase price, in which case rentals are not taxed.

Generally, the applicable tax is a use tax upon the use in this state of the property by the lessee.
California Department of Tax and Fee Administration, Regulation 1660, Leases of Tangible Personal Property · checked October 18, 2026

Is flight instruction taxed in California?

Depends. Under a 1994 CDTFA annotation, an aircraft used only for instruction and never rented to qualified pilots is the school's own use: the student buys a service and no rental tax applies. If the same aircraft is also rented to any qualified pilot at the same rate, with instruction billed separately, the student's charge is a rental plus instruction.

Student flight instruction is ordinarily considered to be a use of the aircraft by an owner-instructor.
California Department of Tax and Fee Administration, Annotation 330.1860, Aircraft: Student Flight Instruction · document dated 5/13/94 · checked October 18, 2026

Are aircraft parts and maintenance labor taxed in California?

Depends. Under CDTFA's general repair guidance, repair labor is not taxable and parts are, when billed separately. When parts are 10 percent or less of a lump-sum repair bill, the shop is treated as their consumer.

10 percent or less of the total charge
California Department of Tax and Fee Administration, Regulation 1546 · checked October 18, 2026
the repairman makes a separate charge for such property
California Department of Tax and Fee Administration, Regulation 1546, Installing, Repairing, Reconditioning · checked October 18, 2026
Repair labor is not taxable.
California Department of Tax and Fee Administration, Publication 108, Labor Charges · document dated September 2018 · checked October 18, 2026

Does California register or tax aircraft every year?

Taxed. Counties may assess personal property tax on aircraft; contact the county assessor where it is based.

personal property tax may be due
California Department of Tax and Fee Administration, Aircraft tax guide · checked October 18, 2026

AerScheduler can add sales tax, at the rates you set, to the invoices you raise for parts, labor and other charges, taxing only the lines your state taxes. How it works