California’s new SaaS tax will hike software costs by 8-10% starting 2027

California’s new SaaS tax will hike software costs by 8-10% starting 2027

7h ago
SaaStr SaaS HoarderSH Gtm_strategy New

The Gist

  • California SB 122 imposes 7.25% to 10.75% tax on SaaS and prewritten software
  • The law redefines digital products as taxable tangible personal property
  • Vendors and buyers face increased costs, with $2B projected annual state revenue

RevBots.ai View:

SaaS Hoarders will feel this pinch hardest as their bloated stacks become even more expensive to maintain.

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