# California aircraft 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.

Source: https://www.aerscheduler.com/aircraft-tax/united-states/california
Checked: 2026-10-18

## 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](https://cdtfa.ca.gov/industry/vehicles-vessels-aircraft/aircraft.htm). Checked 2026-10-18.

## 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](https://cdtfa.ca.gov/industry/vehicles-vessels-aircraft/aircraft.htm). Checked 2026-10-18.

> "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](https://cdtfa.ca.gov/industry/vehicles-vessels-aircraft/aircraft.htm). Checked 2026-10-18.

## 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](https://cdtfa.ca.gov/industry/vehicles-vessels-aircraft/aircraft.htm). Checked 2026-10-18.

> "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](https://cdtfa.ca.gov/industry/vehicles-vessels-aircraft/aircraft.htm). Checked 2026-10-18.

## 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](https://cdtfa.ca.gov/lawguides/vol1/sutr/1660.html). Checked 2026-10-18.

## 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](https://cdtfa.ca.gov/lawguides/vol2/suta/330-1860.html), dated 5/13/94. Checked 2026-10-18.

## 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](https://cdtfa.ca.gov/lawguides/vol1/sutr/1546.html). Checked 2026-10-18.

> "the repairman makes a separate charge for such property"
>
> California Department of Tax and Fee Administration, [Regulation 1546, Installing, Repairing, Reconditioning](https://cdtfa.ca.gov/lawguides/vol1/sutr/1546.html). Checked 2026-10-18.

> "Repair labor is not taxable."
>
> California Department of Tax and Fee Administration, [Publication 108, Labor Charges](https://cdtfa.ca.gov/formspubs/pub108/taxable-labor.htm), dated September 2018. Checked 2026-10-18.

## 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](https://cdtfa.ca.gov/industry/vehicles-vessels-aircraft/aircraft.htm). Checked 2026-10-18.

_Not tax advice. Confirm with the state's revenue department or a CPA before a purchase or a pricing decision._