Understanding the California Embedded Battery Fee
Starting January 1, 2026, California will enforce a Covered Battery‑Embedded (CBE) recycling fee on specific products sold for use within the state. This fee applies to items containing batteries that are not easily removable using common household tools and is determined by the customer’s shipping address.
How Shopify Tax Helps
To support compliance, Shopify Tax will automatically calculate and collect this fee on eligible orders starting March 12, 2026. This requires merchants to assign specific product categories to their products in Shopify.
What You Need to Do
- Confirm Product Categorization: Ensure that eligible products are accurately categorized in Shopify.
- Review Official Guidance: Familiarize yourself with California’s fee guidelines and your filing or remittance obligations.
- Opt-Out Option: If you don’t wish to collect this fee, assign your products to unlisted categories, and the fee will not be applied.
Product Categories That Trigger the Fee
Below are examples of product categories included under the CBE fee:
- Electronics > Video Game Console Accessories > Video Game Controllers
- Electronics > Audio > Audio Components > Headphones & Headsets > Over-Ear Headphones
- Electronics > Audio > Audio Players & Recorders > Radios > AM/FM Radios
- Electronics > Computers > Smart Glasses
- Electronics > Electronics Accessories > Power > Power Banks
- And more...
Stay Ahead of Compliance
By preparing now and correctly categorizing your products, you can ensure a seamless transition to collecting and managing the California embedded battery fee through Shopify Tax. For more details, refer to California's official guidelines.