Do I have to charge sales tax for online sales in California?
Quick answer
Only after you cross economic nexus. Once you exceed $500,000 in sales into California over 12 months, you must register with the California Department of Tax and Fee Administration and charge the buyer's destination rate.
Remote sellers exceeding $500,000 in California sales must register with the CDTFA and collect district taxes.
Rule summary
How California treats each category.
| Economic nexus — sales threshold | $500,000 |
|---|---|
| Transaction-count threshold | None — sales volume only |
| Marketplace facilitator collection | Required — Amazon, Etsy and eBay collect on your behalf for their sales |
| Rate to charge | The buyer's destination rate (7.75%–10.25% in covered California metros) |
| Registration authority | California Department of Tax and Fee Administration |
This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the California Department of Tax and Fee Administration or a tax professional before relying on it for filing.
Combined rates in California
What a taxable purchase actually costs in California.
Frequently asked
Answers pulled from the same rule set.
- Do I have to charge sales tax for online sales in California?
- Only after you cross economic nexus. Once you exceed $500,000 in sales into California over 12 months, you must register with the California Department of Tax and Fee Administration and charge the buyer's destination rate.
- Do marketplace sales count toward the California threshold?
- Marketplaces collect and remit for their own sales, but most states still count those sales when measuring your $500,000 threshold. Check the California Department of Tax and Fee Administration guidance before excluding them.
- Which rate does an online seller charge in California?
- California sources remote sales to the delivery address, so you charge the buyer's combined state, county, city and district rate, not your own location's rate.
More California guides
Other California rules that change the total.