California Sales Tax Guide: Rate, Rules & Filing

California’s statewide base sales and use tax rate is 7.25% — the highest state-level base rate in the US. Local district taxes add 0.10%–2%+, pushing combined rates above 10.75% in some cities. Several district-tax changes took effect on April 1, 2026, with San Jose’s combined rate rising to 10.00%. California sources state, county, and local tax to the seller’s location and district tax to the buyer’s location.

To look up the combined rate for a specific California address, use our US sales tax calculator.

California use tax applies when you buy a taxable item for use in California from a seller that doesn't collect California tax, typically an out-of-state retailer [10]. The rate is the same as the sales tax rate where the item is used: the 7.25% statewide rate plus any district taxes [10].

Businesses with a seller's permit report use tax on their sales and use tax return, on the line for purchases subject to use tax [11]. Individuals report it on their California income tax return or pay CDTFA directly [11]. Someone who isn't registered with CDTFA but buys more than $10,000 a year of items subject to use tax (vehicles excluded) must register as a qualified purchaser and file a return by April 15 [12].

You have economic nexus in California if your total combined sales delivered into the state exceed $500,000 in the current or prior calendar year, including sales made through a marketplace. There is no transaction-count trigger. Physical presence — such as inventory (including FBA stock), employees, or an office — creates nexus immediately, regardless of sales volume.

How to register for a California seller's permit:

1. Confirm you have nexus: physical presence or $500,000 in combined sales into California.

2. Gather your details: EIN or SSN, entity information, a bank account, estimated monthly sales, and major supplier names.

3. Register free at CDTFA Online Services and select "Register a New Business Activity."

4. Receive your seller's permit, often the same day, along with your assigned filing frequency.

5. Start collecting district-accurate tax and remit it on schedule.

California's Marketplace Facilitator Act (AB 147, as amended by SB 92 and AB 1402) made marketplace facilitators responsible for collecting, reporting, and paying sales or use tax on facilitated retail sales of tangible merchandise delivered to California customers beginning October 1, 2019. A facilitator that is registered or required to register with CDTFA is treated as the retailer for those sales once its combined sales — its own California-delivery sales plus sales it facilitates for marketplace sellers and related persons — exceed $500,000 in the preceding or current calendar year, the same figure as California's general economic nexus threshold. A marketplace seller whose merchandise sales are exclusively facilitated by a registered facilitator generally does not need its own seller's permit or Certificate of Registration for those facilitated sales, though it must still report total sales and may claim facilitated sales as a deduction.[9]

The CDTFA assigns monthly, quarterly, or annual filing based on reported or estimated taxable sales. Quarterly is the default for most mid-sized sellers; high-volume sellers file monthly and may owe prepayments on the 24th of the second and third months of each quarter. Returns are due the last day of the month after the reporting period, with January–March due April 30. If a due date lands on a weekend or state holiday, it moves to the next business day.

Step-by-step: how to file California sales tax online

California exempts most groceries (unprepared food for home consumption), prescription medicines, and many medical devices; purchases made with CalFresh benefits are exempt. Hot prepared food, dietary supplements, and carbonated drinks are taxable. Standalone SaaS delivered electronically is generally not taxable because no tangible personal property changes hands.

A California resale certificate (CDTFA-230) lets you buy goods for resale without paying sales tax, provided you intend to resell them in the regular course of business [7]. The certificate stays valid until revoked in writing, so it does not expire; misusing it exposes you to tax, penalties, interest, and possible criminal prosecution [7]. A seller who accepts a valid certificate in good faith owes no tax on that sale [7].

For the official form, multistate certificate rules and expiry, see the California resale certificate guide.

A late return or payment triggers a 10% penalty on the unpaid tax for the period, plus interest from the day after the due date. Failing to make a required prepayment carries a separate 6% penalty on the amount not paid. Filing on time but paying late still draws the 10% charge.

After an audit, the CDTFA issues a Notice of Determination for any additional tax due. You have 30 days from the mailing date to file a Petition for Redetermination (CDTFA-416); miss the deadline and the liability becomes final, leaving only payment in full followed by a claim for refund [8]. A timely petition proceeds to an appeals conference, and you can appeal an adverse decision to the independent California Office of Tax Appeals [8].

• [1] CDTFA — California City & County Sales & Use Tax Rates

• [2] CDTFA — Wayfair: Use Tax Collection Requirements (economic nexus)

• [3] CDTFA — Online Services (register for a seller's permit)

• [4] CDTFA — Filing Dates for Sales & Use Tax Returns

• [5] CDTFA — Grocery Stores (Publication 31)

• [6] CDTFA — Internet Sales: Nontaxable Sales (Publication 109), Regulation 1502

• [7] CDTFA — Sales for Resale (Publication 103)

• [8] CDTFA — Appeals Procedures (Publication 17)

• [9] California Department of Tax and Fee Administration — Tax Guide for Marketplace Facilitator Act

• [10] CDTFA — Use Tax

• [11] CDTFA — Publication 110: Paying Use Tax

• [12] CDTFA — Qualified Purchaser: File a Return

Verified July 2026 against CDTFA published guidance.

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