NSNexus by State

California vs Virginia Sales Tax: 8.99% vs 5.75%, Nexus 2026

Updated

Reviewed by Nexus by State research team using official state tax sources. Last reviewed .

Compare California and Virginia sales tax rates: California shows a 8.99% combined state and average local rate with a $500,000 economic nexus threshold, while Virginia shows 5.75% with a $100,000 threshold. This guide focuses on seller sales-tax obligations rather than personal income-tax returns.

MetricCaliforniaVirginia
Economic nexus threshold$500,000$100,000
Transaction thresholdNone200
State rate7.25%5.30%
Avg. local rate1.74%0.45%
Combined state + local8.99%5.75%
Marketplace facilitatorYesYes
Effective since2019-04-012019-07-01

Which state is easier for sellers?

For low-revenue sellers: nexus triggers first in Virginia because of its $100,000 threshold. If you cross that first, you register there first.

On rate: Virginia is friendlier for customers with a combined state + local rate of 5.75% vs 8.99%.

Virginia 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.

Virginia — nexus note

Economic nexus in Virginia triggers when remote sellers exceed $100,000 in gross sales OR 200 or more separate transactions into Virginia in the current or preceding calendar year — whichever is met first.

What to do next

Use the nexus calculator to check exactly which of California and Virginia you've already triggered. Then read each state's full guide:

California overview →Virginia overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, California or Virginia?
Virginia has the lower economic nexus threshold at $100,000, versus $500,000 in California. A seller's Virginia sales would reach the published Virginia threshold first. These are the thresholds published by each state's tax authority as of 2026-05-27; confirm against the official source before registering.
Do both California and Virginia have marketplace facilitator laws?
Yes. Both California and Virginia 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 2026-05-27.
Which has the lower sales tax rate, California or Virginia?
Virginia has the lower combined state and local sales tax rate at 5.75%, 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 2026-05-27.
Do I need to register for sales tax in both California and Virginia?
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 Virginia'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 2026-05-27.
When did economic nexus take effect in California and Virginia?
California's economic nexus rule took effect on 2019-04-01, and Virginia's took effect on 2019-07-01. 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.

More sales tax comparisons

Selling into more than two states? Compare California and Virginia against other major markets for nexus thresholds, rates, and marketplace facilitator rules.

More California comparisons

More Virginia comparisons

Sources

date_retrieved: California 2026-05-21 · Virginia 2026-05-27