Updated October 24, 2026. Quick answer: Line 91 of California Form 540 is the use tax line, and the booklet says it cannot be left blank. It is for tax on purchases from out-of-state sellers that did not charge California sales or use tax. You compute the amount on the Use Tax Worksheet or, for smaller items, the Estimated Use Tax Lookup Table, and the result goes on line 91 and then into the balance lines that follow it on the form.
What this line does
The form’s own label for the line is “Use Tax. Do not leave blank. See instructions”, and the booklet’s heading for the instructions is Line 91. Beneath it the form prints “If line 91 is zero, check if:” followed by two boxes, “No use tax is owed.” and “You paid your use tax obligation directly to CDTFA.”
The booklet also explains use tax in general on page 33. It says “The use tax has been in effect in California since July 1, 1935.” and “It applies to purchases of merchandise for use in California from out-of-state sellers and is similar to the sales tax paid on purchases you make in California.” This page is one entry in California Form 540 line by line.
Who it applies to
The booklet states the general condition this way: “You must pay California use tax on taxable items if:” “The seller does not collect California sales or use tax, and” “You use, gift, store, or consume the item in this state.”
It gives a plain case: “You live in California and purchase a dining table from a company in North Carolina.” The booklet adds “However, not all purchases require you to pay use tax.” and illustrates with “you would include purchases of clothing, but not exempt purchases of food products or prescription medicine.”
For a California resident also reading about retirement income, the state-level background is in California retirement taxes and whether California taxes pensions.
What the instructions say
| Line | What the form says |
|---|---|
| Line 91 heading | “You are required to enter a number on this line.” |
| Zero amount | “If the amount due is zero, you must check the applicable box to indicate that you either owe no use tax, or you paid your use tax obligation directly to the California Department of Tax and Fee Administration.” |
| When you may owe | “You may owe use tax if you made purchases from out-of-state retailers (for example, purchases made by telephone, online, by mail, or in person) where California sales or use tax was not paid and you used those items in California.” |
| Business purchases | “Some taxpayers are required to report business purchases subject to use tax directly to the California Department of Tax and Fee Administration.” “However, they may report certain personal purchases subject to use tax on the FTB income tax return.” |
| Seller’s permit | “You may not report business purchases subject to use tax on your income tax return if you:” “Have or are required to hold a California seller’s permit” |
| Purchases over the stated amount | “Make more than $10,000 in purchases subject to use tax (excluding vehicles, vessels, and aircraft) per calendar year and have not paid use tax on those purchases to a retailer engaged in business in California or to a retailer authorized by the California Department of Tax and Fee Administration to collect the tax” |
| Registered with CDTFA | “Are otherwise registered or required to be registered with the California Department of Tax and Fee Administration to report use tax.” |
| If not reported on the return | “If you owe use tax but you do not report it on your income tax return, you must report and pay the tax to the California Department of Tax and Fee Administration.” |
| Worksheet or lookup table | “You must use the Use Tax Worksheet to calculate your use tax liability, if any of these apply:” |
| First worksheet trigger | “You prefer to calculate the amount of use tax due based upon your actual purchases subject to use tax, rather than based on an estimate.” |
| Third worksheet trigger | “You owe use tax on purchases of individual items with a purchase price of $1,000 or more each.” |
| Example 1 | “You purchased a television for $2,000 from an out-of-state retailer that did not collect tax.” “You must use the Use Tax Worksheet to calculate the tax due on the price of the television, since the price of the television is $1,000 or more.” |
Retirees who also need the federal side of these totals can compare Form 1040 lines 32 and 33.
The Use Tax Worksheet, line by line
The worksheet is printed on booklet page 18 under the heading “Use Tax Worksheet (See Instructions Below)” and the form tells you “Use whole dollars only”. Its seven lines read as follows.
| Line | What the form says |
|---|---|
| Worksheet line 1 | “Enter purchases from out-of-state sellers made without payment of California sales/use tax.” |
| Worksheet line 2 | “Enter the applicable sales and use tax rate” |
| Worksheet line 3 | “Multiply Line 1 by the tax rate on Line 2.” |
| Worksheet line 4 | “enter the use tax amount due from the Estimated Use Tax Lookup Table.” “If all of your purchases are included in Line 1” |
| Worksheet line 5 | “Add Lines 3 and 4. This is your total use tax.” |
| Worksheet line 6 | “Enter any sales or use tax you paid to another state for purchases included on Line 1.” |
| Worksheet line 7 | “Subtract Line 6 from Line 5. This is the total use tax due. Enter the amount due on Line 91.” “If the amount is less than zero” |
The worksheet has its own notes. For line 1 it says “Report purchases of items that would have been subject to sales tax if purchased from a California retailer unless your receipt shows that California tax was paid directly to the retailer.” and “Include handling charges.” and “Enter only purchases made during the year that corresponds with the tax return you are filing.”
For travel it says “generally use tax is due on the purchase price of the goods you listed on your U.S. Customs Declaration less an $800 per-person exemption.” For married or registered domestic partner filers: “you may elect to report one-half of the use tax due or the entire amount on your income tax return.”
For line 2 the booklet says “Enter the sales and use tax rate applicable to the place in California where the property was used, stored, consumed, or given away.” Line 6 is explained by “You cannot claim a credit for more than the amount of use tax that is imposed on your use of property in this state.”
The figures the form prints
Each of these sits inside one running sentence. The seller’s permit rule above carries a purchase limit of “Make more than $10,000 in purchases subject to use tax (excluding vehicles, vessels, and aircraft) per calendar year”.
The $1,000 per item rule is printed in the worksheet trigger “You owe use tax on purchases of individual items with a purchase price of $1,000 or more each.” Example 3 in the booklet reads “The total price of the items you purchased from out-of-state retailers that did not collect use tax is $2,300, which includes a $1,000 television, a $900 painting, and a $400 table for your living room.”
The credit for tax paid to another state is illustrated by “if you paid $8.00 sales tax to another state for a purchase, and would have paid $6.00 in California, you can claim a credit of only $6.00 for that purchase.”
The Estimated Use Tax Lookup Table on booklet page 18 is a multi-column table of adjusted gross income ranges and use tax amounts. Its amounts are not reproduced here; read them from the table in your own booklet. The booklet describes it as “You may use the Estimated Use Tax Lookup Table below to estimate and report the use tax due on individual non-business items you purchased for less than $1,000 each.” and says “Simply include the use tax liability that corresponds to your California Adjusted Gross Income (found on Line 17) and enter it on Line 91.”
It also limits the table: “You may not use the Estimated Use Tax Lookup Table to estimate and report the use tax due on purchases of items for use in your business or on purchases of individual non-business items you purchased for $1,000 or more each.”
Where the result goes next
The worksheet sends its final answer to the form: “Enter the amount due on Line 91.” Further down the same page of Form 540 the balance lines use line 91 directly. Line 93 reads “Payments balance. If line 78 is more than line 91, subtract line 91 from line 78” and line 94 reads “Use Tax balance. If line 91 is more than line 78, subtract line 78 from line 91”.
Two other booklet notes bear on filing. “Do not file an Amended Income Tax Return to revise the use tax previously reported.” And for extensions: “wait until you file your tax return to report your purchases subject to use tax and make your use tax payment.”
The federal return has no matching line; for the lines that total your other payments on Form 1040 see Form 1040 lines 32 and 33 and Form 1040 lines 22, 23 and 24.
Edition and line numbers
This page reads California 540 Forms and Instructions, 2025 Personal Income Tax Booklet for tax year 2025, the current file the Franchise Tax Board served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Leaving line 91 empty. The form says “Use Tax. Do not leave blank. See instructions” and the booklet adds “If the amount due is zero, you must check the applicable box”.
- Using the lookup table for a large item. The booklet says “You may not use the Estimated Use Tax Lookup Table to estimate and report the use tax due on purchases of items for use in your business or on purchases of individual non-business items you purchased for $1,000 or more each.”
- Trying to correct line 91 on an amended return. The booklet says “Do not file an Amended Income Tax Return to revise the use tax previously reported.”
Related: California retirement taxes, whether California taxes pensions, Form 1040 lines 32 and 33, and Form 1040 lines 22, 23 and 24.
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- California 540 Forms and Instructions, 2025 Personal Income Tax Booklet, Franchise Tax Board: www.ftb.ca.gov
- Form 540, California Resident Income Tax Return (2025), Franchise Tax Board: www.ftb.ca.gov
- Related official page (not quoted): Franchise Tax Board, 2025 Personal Income Tax Booklet page: www.ftb.ca.gov
Read from the state revenue documents linked above on October 24, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.