California’s New CBE Waste Recycling Fee
Effective January 1, 2026, California is introducing a new Battery-Embedded (CBE) Waste Recycling Fee that applies to certain products sold or leased for use in the state that contain non-removable, embedded batteries. The fee is set at 1.5% of the product’s retail price, capped at $15 per item, must be separately stated on invoices or receipts where required, and is paid by the customer at the time of purchase or lease.
What you need to do to remain compliant
- Ensure your systems are properly configured to identify applicable products
- Calculate the fee
- Disclose it correctly
Do you already owe tax in California?
Two questions. No email required to see your answer.
Have your sales into California grown over the last four quarters?
What this means for your business
If your sales into California have grown with prices, you may have crossed the economic nexus threshold without changing anything about how you sell. We’ll tell you where you stand in 30 minutes — and if there’s nothing to fix, we’ll say so.