What is California's e-commerce sales tax in 2026?

California's 2026 e-commerce sales tax: out-of-state sellers collect once they cross $500,000 in California-destination revenue. As a remote seller, charge the 7.25% state rate plus any applicable local rate at the buyer's ship-to address.

Do I collect sales tax on every California order?

You collect California sales tax once you cross the economic nexus threshold ($500,000). Below threshold, you don't need to collect unless you have physical nexus (office, employees, inventory in California).

What rate do I charge for California e-commerce sales?

For sales shipped into California from out of state, charge the 7.25% state rate plus any applicable local rate at the buyer's ship-to address. Most e-commerce platforms (Shopify, WooCommerce) can apply destination rates automatically when you enable CA in tax settings. Sales that both begin and end inside California can follow a different sourcing rule in a minority of states — check with the California Department of Revenue if you are an in-state seller.

Do I need to collect sales tax on shipping in California?

It depends on state-specific rules. Many states tax shipping when the product is taxable; some states exempt shipping if separately stated. Check California's specific policy or use a tax service that encodes the rule.

California E-commerce Sales Tax Nexus Guide — 2026

Updated 2026-07-20

Reviewed by Nexus by State research team using official state tax sources. Last reviewed 2026-07-20.

Guide content last reviewed: 2026-07-20

If your E-commerce business sells $500,000 into California in a calendar year, you have economic nexus and must register, collect, and remit California sales tax.

E-commerce sales tax basics in California

For a direct-to-consumer store (Shopify, WooCommerce, BigCommerce, or custom) shipping to California buyers, the economic nexus trigger is $500,000 in CA-destination revenue (effective 2019-04-01). Crossing that bar obligates registration, collection, and periodic filing.

Once registered, charge 7.25% state tax plus the applicable local rate — averaging 1.74% across California but varying by the buyer's shipping ZIP on most tangible personal property. Digital products, subscriptions, and professional services have different treatment — see the California SaaS page if you sell software or digital goods.

Registration + collection checklist

Register with the California Department of Revenue for a sales tax permit.
Configure your cart platform to collect tax at the destination rate. Enable CA in your tax settings.
As a remote seller, charge the combined state + local rate at the customer's delivery address — interstate sales are sourced to the destination, not to where you ship from.
File returns on the cadence your DOR assigns (monthly, quarterly, or annually).
Track your California-sourced revenue monthly so you know when you're approaching or below threshold for the next period.

Common mistakes e-commerce sellers make in California

Using origin-based rates (your HQ state's rate) instead of destination rates. A sale shipped from outside California into California is sourced to the buyer's delivery address, so charge the CA rate, not your home state's. Intrastate sales are a separate question: a minority of US states apply origin sourcing to sales that both begin and end in-state, so if your business is located in California, confirm the intrastate rule with the California Department of Revenue before configuring your cart.
Guessing at how marketplace sales count toward the California threshold. States split on this — some let a seller exclude sales a registered marketplace facilitator already collected on, others require those sales to be included in the threshold test even though the marketplace remits the tax. Read California’s own rule on the California marketplace facilitator page before adding or removing them from your nexus-tracking spreadsheet.
Waiting until year-end to register. Registration and collection deadlines run from the threshold-crossing date, and the length of that grace period is set by each state — some require collection on the very next transaction, others allow until the first day of a later month. Check California’s deadline with the DOR as soon as you cross $500,000; back-tax exposure accrues for every day you sell unregistered.
Forgetting to file zero returns once registered. Missing filings trigger penalties even when you owe no tax.

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.

What to do next

Read the full California overview for thresholds, filing frequency, marketplace facilitator rules, and registration links. Use the nexus calculator to check whether you have crossed the threshold. For background on the post-Wayfair economic nexus framework, see the pillar guide.

E-commerce sales tax in other states

Compare California's e-commerce rules with nearby and similar states' e-commerce sales tax guides:

Frequently asked questions

What is California's e-commerce sales tax in 2026?: California's 2026 e-commerce sales tax: out-of-state sellers collect once they cross $500,000 in California-destination revenue. As a remote seller, charge the 7.25% state rate plus any applicable local rate at the buyer's ship-to address.
Do I collect sales tax on every California order?: You collect California sales tax once you cross the economic nexus threshold ($500,000). Below threshold, you don't need to collect unless you have physical nexus (office, employees, inventory in California).
What rate do I charge for California e-commerce sales?: For sales shipped into California from out of state, charge the 7.25% state rate plus any applicable local rate at the buyer's ship-to address. Most e-commerce platforms (Shopify, WooCommerce) can apply destination rates automatically when you enable CA in tax settings. Sales that both begin and end inside California can follow a different sourcing rule in a minority of states — check with the California Department of Revenue if you are an in-state seller.
Do I need to collect sales tax on shipping in California?: It depends on state-specific rules. Many states tax shipping when the product is taxable; some states exempt shipping if separately stated. Check California's specific policy or use a tax service that encodes the rule.

Sources

date_retrieved: 2026-05-21