Does California have sales tax?

Yes. California has a 7.25% statewide sales tax rate, plus an average local rate of 1.74%. Check the exact rate at the customer's delivery address before charging. Source data last retrieved 2026-05-21.

Do I have to collect sales tax in California?

You must collect California sales tax if your economic nexus threshold is met: $500,000 in sales to California customers.

What is California's sales tax nexus threshold for 2026?

California publishes a sales-only economic nexus threshold: more than $500,000 in total combined sales of tangible personal property delivered into California during the preceding or current calendar year. There is no separate transaction-count test. Related-person sales count toward the threshold, and the CDTFA source data was last retrieved 2026-05-21.

Do marketplace sales count toward California economic nexus?

CDTFA marketplace guidance says to include California sales made on your own behalf and sales facilitated through a marketplace when testing the $500,000 threshold. If all of your California sales are facilitated by registered marketplace facilitators that are treated as the retailers for those sales, you may not need a separate California registration for those marketplace transactions, but direct-to-consumer sales outside the marketplace remain your own collection responsibility once California nexus is met.

Why does California use a $500,000 Wayfair threshold?

California enacted AB 147 after South Dakota v. Wayfair. The law replaced California's initial remote-seller threshold with the current $500,000 sales-only standard for tangible personal property delivered into California, effective April 1, 2019.

What is California's sales tax rate?

California's base state rate is 7.25% plus an average local rate of 1.74%. Always check the exact rate at the customer's delivery address before charging.

Does California have a marketplace facilitator law?

Yes. Marketplaces like Amazon, Etsy, and eBay collect and remit California sales tax on behalf of third-party sellers for transactions they facilitate. Direct-to-consumer sales outside a marketplace are still your responsibility.

What is California's marketplace facilitator threshold for sales tax?

California applies the same threshold to marketplace facilitators as to remote sellers: $500,000 in California sales over the lookback period. When a marketplace exceeds the threshold, it must register and collect California sales tax on every facilitated sale — sellers do not collect on those marketplace transactions. Direct-to-consumer sales you make outside any marketplace still count toward your own economic nexus and remain your collection responsibility once you cross the threshold.

When did California's economic nexus law take effect?

California's current economic nexus rule took effect on 2019-04-01.

California Sales Tax Nexus & Economic Nexus Threshold (2026)

Updated 2026-05-21

Economic nexus triggers at $500,000 in sales delivered to California customers.

7.25% statewide sales tax rate, with an average combined state and local rate of 8.99%.

Economic nexus threshold	$500,000 No transaction count threshold
State sales tax rate	7.25% Average combined rate (state + local): 8.99%
Marketplace facilitator law	Yes Amazon, Etsy, eBay collect and remit on your behalf
Effective date	2019-04-01
Department of Revenue	Official site

Check California nexus with your numbers

If your sales are close to the California threshold, run the sales tax nexus calculator with your revenue and transaction count before you register. The calculator applies the same state threshold data shown here and can compare California against every other state where you sell.

How California nexus works

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.

Filing frequency

Filing frequency in California depends on your sales tax liability. Higher-volume sellers file monthly; lower-volume sellers typically file quarterly or annually. The state will assign a frequency when you register.

Marketplace facilitator law

Yes, California has a marketplace facilitator law. Sales you make through Amazon, Etsy, eBay, Walmart, and other marketplaces are collected and remitted by the marketplace — you do not need to collect tax on those transactions yourself, though you may still need to register.

California sales tax by topic

Related states to California

If you sell into California, you likely also sell into these nearby or economically similar states. Each has its own nexus threshold and rate.

Texas$500,000 · 6.25%

Compare California vs Texas →

New York$500,000 · 4.00%

Compare California vs New York →

Florida$100,000 · 6.00%

Compare California vs Florida →

Washington$100,000 · 6.50%

Compare California vs Washington →

Frequently asked questions

Does California have sales tax?: Yes. California has a 7.25% statewide sales tax rate, plus an average local rate of 1.74%. Check the exact rate at the customer's delivery address before charging. Source data last retrieved 2026-05-21.
Do I have to collect sales tax in California?: You must collect California sales tax if your economic nexus threshold is met: $500,000 in sales to California customers.
What is California's sales tax nexus threshold for 2026?: California publishes a sales-only economic nexus threshold: more than $500,000 in total combined sales of tangible personal property delivered into California during the preceding or current calendar year. There is no separate transaction-count test. Related-person sales count toward the threshold, and the CDTFA source data was last retrieved 2026-05-21.
Do marketplace sales count toward California economic nexus?: CDTFA marketplace guidance says to include California sales made on your own behalf and sales facilitated through a marketplace when testing the $500,000 threshold. If all of your California sales are facilitated by registered marketplace facilitators that are treated as the retailers for those sales, you may not need a separate California registration for those marketplace transactions, but direct-to-consumer sales outside the marketplace remain your own collection responsibility once California nexus is met.
Why does California use a $500,000 Wayfair threshold?: California enacted AB 147 after South Dakota v. Wayfair. The law replaced California's initial remote-seller threshold with the current $500,000 sales-only standard for tangible personal property delivered into California, effective April 1, 2019.
What is California's sales tax rate?: California's base state rate is 7.25% plus an average local rate of 1.74%. Always check the exact rate at the customer's delivery address before charging.
Does California have a marketplace facilitator law?: Yes. Marketplaces like Amazon, Etsy, and eBay collect and remit California sales tax on behalf of third-party sellers for transactions they facilitate. Direct-to-consumer sales outside a marketplace are still your responsibility.
What is California's marketplace facilitator threshold for sales tax?: California applies the same threshold to marketplace facilitators as to remote sellers: $500,000 in California sales over the lookback period. When a marketplace exceeds the threshold, it must register and collect California sales tax on every facilitated sale — sellers do not collect on those marketplace transactions. Direct-to-consumer sales you make outside any marketplace still count toward your own economic nexus and remain your collection responsibility once you cross the threshold.
When did California's economic nexus law take effect?: California's current economic nexus rule took effect on 2019-04-01.

Sources

date_retrieved: 2026-05-21