Rate structure
California's statewide base rate is 7.25% — the highest base rate in the country. District taxes add up to 3.5 percentage points depending on delivery location, so the combined rate ranges from 7.25% to 10.75%. California is a destination-sourced state for district tax: you charge the rate at your buyer's address.
COMPONENTRATENOTES
Statewide base7.25%Includes 1.25% mandatory local portion
District taxes0–3.50%City/county districts, by delivery address
Combined range7.25–10.75%Highest combined rates in Alameda County
ShippingExempt**If separately stated and actual cost
Example: a $100 order shipped to Los Angeles (90012) = 7.25% state + 2.25% district = $9.50 tax at 9.50%.
Economic nexus threshold
You must register and collect once your total California sales exceed $500,000 in the current or prior calendar year. There is no transaction-count threshold. Marketplace sales count toward the threshold even though the marketplace collects for you.
Filing frequency & prepayments
CDTFA assigns your frequency at registration based on expected tax liability, and adjusts it over time. Sellers averaging $17,000+ per month in taxable sales must also make monthly prepayments within quarterly filing.
FREQUENCYASSIGNED WHEN (TAX/YR)RETURN DUE
Quarterly$1,200 – $12,000Last day of month after quarter end
Quarterly + prepay$204,000+ taxable sales/yrPrepayments due the 24th monthly
MonthlyAssigned by CDTFALast day of following month
AnnualUnder $1,200January 31
2026 quarterly due dates
Q4 2025
Feb 2, 2026
Oct–Dec 2025
Q1 2026
Apr 30, 2026
Jan–Mar 2026
Q2 2026
Jul 31, 2026
Apr–Jun 2026
Q3 2026
Nov 2, 2026
Jul–Sep 2026
Prepayers: monthly prepayments are due the 24th of the following month for the first two months of each quarter.
Marketplace facilitator rules
Since October 2019, marketplaces (Amazon, eBay, Walmart, TikTok Shop) collect and remit California tax on your marketplace sales. But you still have obligations:
You still file — marketplace sales are reported on your return as a deduction, not omitted.
Direct channels are yours — Shopify and your own site are not covered — you collect and remit those.
Threshold counts everything — marketplace + direct sales together determine your $500k nexus status.
FAQ
Do I need a California permit if I only sell on Amazon?
If you exceed the $500k threshold or have physical presence (including FBA inventory in CA warehouses), yes — you must register even though Amazon collects for you.
Does FBA inventory in California create nexus?
CDTFA has treated in-state inventory as physical presence. Many FBA sellers register on this basis; review your specific situation before deciding.
What if I sell on Shopify and TikTok Shop?
TikTok Shop collects as a marketplace facilitator; Shopify does not. You collect on Shopify orders and report both streams on your CDTFA return — SalesTax50 separates them automatically.
What are the penalties for late filing?
10% of tax due plus interest. CDTFA also charges a 10% penalty on late prepayments.
Let AutoFile handle your California returns
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