California
Provinces
California
Provinces
California
About
California
About
California
California
California
Standard rate
The standard rate in California for sales tax for 2024 is 7.25-10.25%.Reduced rate
The reduced rate in California for sales tax for 2024 is 5%.Sales of tax-free products and services
The following products and services are tax-free in California:- Food;
- Health Related;
- Housing (Gas, electricity, water, steam, telephone lines, and poles).
Who must register sales tax in California
If you are selling in California, and have an economic nexus to California, your buyers are required to pay sales tax and if you meet the $500,000 threshold in the preceding or current calendar year, you must register to collect and pay sales taxin California.
Standard rate
7.25-10.25%
Reduced rate
5%
Threshold
$500,000
Just fill your US ZIP or address and find out sales tax rate
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Threshold
Starting October 1, 2019, out-of-state dealers with economic presence or nexus in California must register to collect sales tax. This includes online retailers or remote sellers that meet the $500,000 threshold in the preceding or current calendar year, including all sales facilitated through a marketplace facilitator’s marketplace as defined above. The same threshold is set for goods. There is no threshold for digital services as registration for digital services is not required. Digital services such as digital images, e-books, mobile applications, data and software provided online via the Internet are not taxable. Merchant thresholds by state Marketplace thresholds by state The special rules are applicable to the SAAS business. Software as Service Tax Thresholds by state.Online Marketplaces
A marketplace facilitator is considered the seller and retailer for each sale facilitated through its website. In accordance with the law, a person, including a marketplace facilitator, is required to register with the California Tax Department and get a Certificate of Registration if they:- Sell tangible personal property in the state;
- Have a physical presence in this state (business location, representative, etc);
- Have an economic nexus.
Sales tax payment and filing date
Based on your tax liability, determine your filing frequency – either, quarterly, quarterly prepaid, or annual (Fiscal annual):- Annual or Fiscal Annual – $0 to $100;
- Quarterly – $101.00 to $1200.00;
- Quarterly Prepaid – $1,200.01 and up.
Penalty and interest
- Late Filing Penalty – 10% of sales tax incurred;
- Late Payment Penalty – 10% of sales tax incurred.
California Sales Tax Holiday
California does not currently have any sales tax holidays scheduled for 2024.California Sales Tax Nexus
- Physical Nexus: Physical presence includes having offices, employees, inventory, or any tangible property in the state, creating Nexus for sales tax purposes.
- Economic Nexus: For sales tax, businesses must collect and remit tax if they exceed $500,000 in sales of tangible personal property in California within the previous or current calendar year.
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