California 10-Cent Bag Law: Coverage, Exemptions & Which Stores Charge

The California 10-cent bag fee goes entirely to the store. It is not a tax, and no portion is remitted to the state or any other government agency. The charge exists as a minimum sale price on the recycled paper bag itself, set so that shoppers who bring their own bags aren’t quietly subsidizing bags for everyone else.¹

What the 10 Cents Actually Covers

The statute frames the dime as the price of the bag, not a fee collected on behalf of the government. Its stated purpose is to “ensure that the cost of providing a recycled paper bag is not subsidized by a consumer who does not require that bag.”¹ People who use bags pay for them; people who don’t, don’t.

From the store’s side, 10 cents isn’t pure profit. Compliant recycled paper bags cost wholesalers roughly 5 to 8 cents apiece for smaller sizes, and larger handled shopping bags can run above 10 cents each. Once shipping, storage, and stocking labor are added in, the minimum charge often just breaks even. A store may charge more than 10 cents, but most stay at the floor.

Is Sales Tax Added to the Bag Charge?

No. The California Department of Tax and Fee Administration has stated that amounts charged for carryout bags are not subject to sales tax and should not be included in a retailer’s gross receipts for sales tax purposes. If your receipt shows $0.10 for a bag, that’s the full amount.

When You Don’t Have to Pay

You can always bring your own bag of any material and skip the charge. A store also cannot require you to buy a paper bag as a condition of your purchase.¹

Shoppers paying with a WIC voucher or a CalFresh EBT card must be given a recycled paper bag at no cost. Charging the 10 cents to these customers is prohibited, and the exemption is meant to apply automatically at the register without you having to ask.¹

Bags That Are Always Free

Some bags fall outside the charge entirely because they aren’t checkout bags:

Pre-checkout bags torn from a roll to hold produce, meat, fish, nuts, grains, candy, or bakery items.
Pharmacy bags used to hold prescription medication.
Nonhandled protective bags used to keep a purchased item from damaging or contaminating others.
Nonhandled garment bags placed over clothing on a hanger.

None of these are meant to carry a full purchase out the door; they serve a containment or protective purpose.²

What You Get for the 10 Cents

The paper bag sold at checkout isn’t any brown sack. It must be accepted in curbside recycling programs across the state and must be printed with the manufacturer’s name, country of origin, and postconsumer recycled content percentage.²

As of January 1, 2026, plastic carryout bags at the point of sale are gone, including the thicker “reusable” plastic bags that stores used to sell for a dime under the old rules. Paper is the only option a store can sell at checkout. Starting January 1, 2028, every recycled paper bag sold at checkout must contain at least 50 percent postconsumer recycled material.³

Which Stores Have to Charge It

The 10-cent minimum applies at most large grocery stores, retail stores with a pharmacy, convenience stores, food marts, and liquor stores. Smaller specialty shops that don’t fit any of those categories aren’t bound by the same rules, so you may see different practices at, say, a boutique or hardware store.²

At covered stores, the paper-only rule and the 10-cent minimum apply not just at the checkout counter but at self-checkout kiosks, in-store pickup, curbside pickup, and home delivery. If a bag is used to get your purchase to you, it counts.³

1
California Legislative Information. California Public Resources Code 42283
2
California Legislative Information. California Public Resources Code 42280
3
CalRecycle. Bag Requirements at Grocery and Retail Stores