Can a Tenant Deduct Their Internet Bill From Rent? (AB 1414)

Published August 10, 2026

AB 1414 requires landlords to let tenants opt out of paying for a bundled third-party internet subscription. If a landlord blocks that opt out, the tenant may deduct the cost of the subscription from rent, effective for tenancies on or after January 1, 2026.

The short answer

Yes, under specific conditions. New Civil Code section 1942.8, added by AB 1414, requires a landlord or their agent to let a tenant opt out of paying for a bundled third-party internet subscription connected to the tenancy. If the landlord blocks that opt out, the tenant may deduct the cost of the subscription from rent. The rule applies to tenancies commenced, renewed, or continuing month to month on or after January 1, 2026.

Last verified: August 10, 2026

What the law actually requires

AB 1414, authored by Assemblymember Ransom and signed October 10, 2025 as Chapter 506, adds a new statute rather than amending an existing one. Civil Code section 1942.8 did not exist before this bill.

Subdivision (a) states the core rule: "For any residential tenancy commenced, renewed, or continuing on a month-to-month or other periodic basis, on or after January 1, 2026, a landlord or their agent shall allow the tenant to opt out of paying for any subscription from a third-party internet service provider, such as through a bulk-billing arrangement, to provide service for wired internet, cellular, or satellite service that is offered in connection with the tenancy."

This targets bulk billing, sometimes called bulk internet or a door fee, the practice of a property bundling an internet service provider subscription into the rent or a mandatory add-on fee for every unit, whether or not a tenant wants that specific provider's service.

The remedy if a landlord blocks the opt out

Subdivision (c) is the enforcement mechanism, and it is short: "If the landlord or their agent violates subdivision (a), the tenant may deduct the cost of the subscription to the third-party internet service provider from the rent."

The statute does not set a dollar cap on the deduction, does not describe a required notice-and-cure period before a tenant deducts, and does not specify documentation the tenant must provide. It ties the deduction to the actual subscription cost, not to a fixed statutory penalty.

| Provision | What the statute says | Civil Code citation |

|---|---|---|

| Tenant's right | Landlord must allow opt out of a bundled third-party ISP subscription | Section 1942.8(a) |

| What's covered | Wired internet, cellular, or satellite service offered in connection with the tenancy, including bulk-billing arrangements | Section 1942.8(a) |

| Remedy for violation | Tenant may deduct the cost of the subscription from rent | Section 1942.8(c) |

| Retaliation | Prohibited, consistent with existing protections under Section 1942.5 | Section 1942.8(b) |

| Bulk billing itself | Not banned. Landlords may still offer bulk-billing arrangements | Section 1942.8(d) |

| Effective date | Tenancies commenced, renewed, or continuing month to month on or after January 1, 2026 | Section 1942.8(a) |

Bulk billing is not banned, only mandatory bulk billing without an opt out

This is the detail landlords most often get wrong when they hear about this law. AB 1414 does not prohibit bundling internet into a lease or a bulk arrangement with a provider. Subdivision (d) says explicitly: "This section does not prevent a landlord or their agent from offering bulk-billing arrangements to their tenants."

What the statute prohibits is forcing a tenant to pay for that arrangement with no way out. A landlord can still negotiate a bulk deal with an internet provider and offer it as the default or the convenient option. The tenant must be allowed to opt out of paying for it, for example if they want to use a different provider or already have service through another line.

Retaliation protection

Subdivision (b) folds the tenant's rights under this new statute into California's existing retaliation protections at Civil Code section 1942.5. That statute already bars a landlord from raising rent, decreasing services, or moving to evict a tenant in retaliation for the tenant exercising certain protected rights, within a defined window after the protected act. AB 1414 extends that same retaliation shield to a tenant who exercises the internet opt-out right.

What "internet service provider" means under this statute

Section 1942.8(e) borrows its definition of internet service provider from Civil Code section 3100 rather than writing a new one. That cross-reference means the scope of covered providers tracks whatever section 3100 defines, which this article has not independently verified beyond confirming the cross-reference exists in the chaptered bill text. If you need the precise boundary of what counts as a covered internet service provider for an edge case, such as a satellite reseller or a mobile hotspot vendor, confirm the section 3100 definition directly or with a landlord-tenant attorney.

What South Bay landlords with bulk internet arrangements should do

If any of your South Bay units have a bulk internet fee baked into the rent or billed as a mandatory add-on, build an opt-out mechanism into the lease and your billing process before your next lease signing or renewal on or after January 1, 2026. That means giving the tenant an actual way to decline the bundled subscription and stop paying for it, not just a verbal option. Keep a record of who opted out and when, since the statute's remedy for a blocked opt out is a rent deduction the tenant can take unilaterally, and a documentation gap works against the landlord in any dispute over what was offered.

FAQ

Does AB 1414 ban bulk internet billing in California rentals?

No. Section 1942.8(d) explicitly allows landlords to keep offering bulk-billing arrangements. The law only requires that tenants be allowed to opt out of paying for it.

How much can a tenant deduct from rent if a landlord blocks the opt out?

The statute says the tenant may deduct "the cost of the subscription to the third-party internet service provider," tied to the actual subscription cost rather than a fixed penalty. The bill text does not specify a documentation or notice process for making that deduction. Confirm the mechanics with a landlord-tenant attorney before a dispute.

Does this apply to a lease signed in 2024 that hasn't changed?

The statute applies to a tenancy "commenced, renewed, or continuing on a month-to-month or other periodic basis, on or after January 1, 2026." A periodic month-to-month tenancy that is ongoing into 2026 appears to fall within that language based on the text itself. For a fixed-term lease that has not yet renewed, confirm with an attorney how the trigger applies.

Can I retaliate by raising rent on a tenant who opts out of my bulk internet deal?

No. Section 1942.8(b) explicitly prohibits retaliation for exercising the opt-out right, applying the same protections as Civil Code section 1942.5.

What counts as a "third-party internet service provider" under this law?

The statute uses the definition of internet service provider found in Civil Code section 3100. This article has not independently verified the full text of that cross-referenced definition. Confirm it directly if your situation involves an edge case like a mobile hotspot or satellite reseller.

Does this law require me to pay for internet myself if I stop bundling it?

No. The statute requires that tenants be allowed to opt out of paying for a bundled subscription. It does not require the landlord to provide internet service at all.

This is general information about a recently enacted state law, not legal advice. Confirm how AB 1414 applies to your specific bulk billing arrangement and lease terms with a licensed California landlord-tenant attorney.

Topics: compliance, AB 1414, internet service, bulk billing, South Bay

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