Tax Rate
3.00%
Filing Frequency
Annual
Annual filing due on or before March 1 (or next business day if March 1 falls on weekend). If annual tax ≥ $20,000, monthly prepayments required for following year with Form FS-007. Extension requests must be submitted in writing before due date.
Filing Method
electronic_bulk
Format: Online filing via PTPS portal. Form CDI FS-006 for regular filing or CDI FS-006-0 for zero filing. Must report single-state and multi-state policies separately. Lloyd syndicates reported separately. Top 24 carriers by premium first.
Requirements
California requires an annual surplus lines tax filing through the Premium Tax Processing System (PTPS) using Form CDI FS-006 (or FS-006-0 for zero activity).
• Filing due on or before March 1 (next business day if weekend)
• All surplus line brokers must file annually, including zero activity
• If prior year annual tax ≥ $20,000:
Monthly prepayments required for the following year
Electronic Funds Transfer (EFT) mandatory
• Gross premium must include all policy-related fees
• Report single-state and multi-state policies separately
• Report Lloyd syndicates separately (include syndicate numbers)
• List top 24 carriers by gross taxable premium first
• Annual tax cannot be negative
• No carry-over of excess return premiums from prior year
• Trust Assets and Liabilities statement required as of December 31
• Beginning 2024: all amounts must be reported and paid in whole dollars
• Invoice date must be within:
60 days of policy effective date
60 days of placement with nonadmitted insurer
Filing Methods
- excel_upload
- online_portal
Filing Steps
- 1File online via PTPS portal only
- 2If annual tax ≥ $20,000: monthly prepayments required for following year
- 3If annual tax ≥ $20,000: EFT mandatory
- 4Monthly prepayments use Form FS-007
- 5California keeps 100% of tax for CA home state insureds (no allocation)
- 6Separate single-state and multi-state policies
- 7Report Lloyd syndicates separately with syndicate numbers
- 8List top 24 carriers by gross taxable premium first
- 9Beginning 2024: report and pay in whole dollars only
- 10Gross premiums include policy fees, inspection fees, etc.
- 11No carry-over of excess return premiums from prior year
- 12Annual tax cannot be negative
- 13No group filings - separate return for each license
Required Forms
- CDI FS-006 — Annual Surplus Line Broker Tax Return
- CDI FS-006-0 — Zero Filing Return (if no activity)
- CDI FS-007 — Monthly Premium Tax Payment Voucher (if ≥ $20,000 threshold met)
- CDI FS-008 — PTPS Account Registration Agreement (one-time setup)
- D-1 Disclosure Statement (at application)
- D-2 Disclosure Statement (affixed to policy)
Common Issues to Avoid
- Missing March 1 annual deadline
- Not making monthly prepayments when required ($20K threshold)
- Not paying via EFT when required ($20K threshold)
- Invoice date exceeds 60 days from effective date
- Invoice date exceeds 60 days from placement
- Not separating single-state vs multi-state policies
- Not separating Lloyd syndicate reporting
- Not listing top 24 carriers first
- Reporting in cents instead of whole dollars (2024+)
- Attempting to carry over excess return premiums from prior year
- Group filing instead of separate returns per license
- Not including policy fees in gross premiums
- Missing NAIC number or state of domicile
Helpful Tips
- Register for PTPS well before first filing deadline
- Set annual reminder for March 1 deadline
- Track annual tax total to know if $20K threshold met
- If ≥$20K: set monthly reminders for prepayments
- Ensure invoice date within 60 days (both rules)
- Round to whole dollars before submitting (2024+)
- No negative annual tax - cannot carry over excess returns
- File separate return for each surplus line license
- Include all fees when calculating gross premiums
Important Notes
Tax Rate: 3% to California Department of Insurance
• Stamping Fee: 0.18% to Surplus Line Association of California
• California retains 100% of tax for California home-state insureds (no allocation)
• Filing is completed online via PTPS portal only
• Separate return required for each surplus line broker license
• Extension available up to 30 days if requested in writing before due date (1% monthly interest applies)
• Monthly prepayments (if applicable) use Form CDI FS-007
Frequently Asked Questions
What is the surplus lines tax rate in California?
The surplus lines tax rate in California is 3.00%.
When is surplus lines tax due in California?
Annual filing due on or before March 1 (or next business day if March 1 falls on weekend). If annual tax ≥ $20,000, monthly prepayments required for following year with Form FS-007. Extension requests must be submitted in writing before due date.
How do I submit surplus lines filings in California?
electronic_bulk