California vs New Jersey Sales Tax Nexus — Comparison 2026
Compare economic nexus thresholds, state and local rates, and filing rules in California and New Jersey.
| Metric | California | New Jersey |
|---|---|---|
| Economic nexus threshold | $500,000 | $100,000 |
| Transaction threshold | None | 200 |
| State rate | 7.25% | 6.63% |
| Avg. local rate | 1.74% | n/a |
| Combined state + local | 8.99% | 6.63% |
| Marketplace facilitator | Yes | Yes |
| Effective since | 2019-04-01 | 2018-11-01 |
Which state is easier for sellers?
For low-revenue sellers: nexus triggers first in New Jersey because of its $100,000 threshold. If you cross that first, you register there first.
On rate: New Jersey is friendlier for customers with a combined state + local rate of 6.63% vs 8.99%.
New Jersey also adds a 200-transaction trigger that California doesn't have.
California — nexus note
California sales tax nexus and economic nexus threshold: CDTFA guidance says remote retailers must register and collect California use tax when total combined sales of tangible personal property for delivery into California exceed $500,000 during the preceding or current calendar year. California uses a sales-only threshold — no transaction-count test. AB 147 replaced the earlier $100,000/200-transaction Wayfair threshold with the current $500,000 standard, and related-person sales count toward the threshold. CDTFA marketplace guidance says sellers include both direct California sales and marketplace-facilitated sales when testing the $500,000 threshold, but sellers whose California sales are entirely facilitated by registered marketplace facilitators may not need separate registration for those marketplace transactions. Direct-to-consumer sales outside a marketplace remain the seller's own collection responsibility once California nexus is met.
New Jersey — nexus note
New Jersey sales tax nexus and economic nexus threshold: since November 1, 2018, remote sellers must register, collect, and remit New Jersey Sales Tax when current- or prior-calendar-year gross revenue from sales of tangible personal property, specified digital products, or taxable services delivered into New Jersey exceeds $100,000 OR those sales reach 200 or more separate transactions. New Jersey includes nontaxable retail sales of tangible personal property and specified digital products in the $100,000 gross-revenue test, but remote sellers making only resale sales or only nontaxable retail sales are not required to register on that basis. Marketplace facilitators collect New Jersey Sales Tax on marketplace transactions regardless of whether the marketplace seller is above or below the threshold; an over-threshold marketplace-only seller may register and request non-reporting status. New Jersey Division of Taxation source data last retrieved 2026-06-08.
What to do next
Use the nexus calculator to check exactly which of California and New Jersey you've already triggered. Then read each state's full guide:
Frequently asked questions
- Which state has the lower sales tax nexus threshold, California or New Jersey?
- New Jersey has the lower economic nexus threshold at $100,000, versus $500,000 in California. A seller's New Jersey sales would reach the published New Jersey threshold first. These are the thresholds published by each state's tax authority as of 2026-06-08; confirm against the official source before registering.
- Do both California and New Jersey have marketplace facilitator laws?
- Yes. Both California and New Jersey have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-06-08.
- Which has the lower sales tax rate, California or New Jersey?
- New Jersey has the lower combined state and local sales tax rate at 6.63%, compared with 8.99% in California. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-06-08.
- Do I need to register for sales tax in both California and New Jersey?
- It depends on where you cross each state's economic nexus threshold (or have physical presence there). California's published threshold is $500,000, and New Jersey's is $100,000 or 200 transactions. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-06-08.
- When did economic nexus take effect in California and New Jersey?
- California's economic nexus rule took effect on 2019-04-01, and New Jersey's took effect on 2018-11-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.
Sources
date_retrieved: California 2026-05-21 · New Jersey 2026-06-08
- California: https://www.cdtfa.ca.gov/
- California: https://www.cdtfa.ca.gov/industry/wayfair/
- California: https://cdtfa.ca.gov/industry/wayfair/general-information.htm
- California: https://cdtfa.ca.gov/industry/wayfair/frequently-asked-questions.htm
- California: https://cdtfa.ca.gov/industry/MPFAct.htm
- California: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- California: https://taxfoundation.org/data/all/state/sales-tax-rates/
- New Jersey: https://www.state.nj.us/treasury/taxation/
- New Jersey: https://www.nj.gov/treasury/taxation/remotesellers.shtml
- New Jersey: https://www.nj.gov/treasury/taxation/remotesellersfaq.shtml
- New Jersey: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- New Jersey: https://taxfoundation.org/data/all/state/sales-tax-rates/